While some have got out their temporary summer gear, business travel professionals are drawing out their calculators. And the least we can say is that the calculations are not good! Or at least, the result, and its impact on travel budgets. A few days ago, Travelperk calculated the inflation in the business travel sector between the first and second quarters. At the time, a spokesperson for the management platform spoke of " increases due to a number of external factors that all sectors of the travel industry are grappling with, including the rise in the price of...
While some have got out their temporary summer gear, business travel professionals are drawing out their calculators. And the least we can say is that the calculations are not good! Or at least, the result, and its impact on travel budgets. A few days ago, Travelperk calculated the inflation in the business travel sector between the first and second quarters. At the time, a spokesperson for the management platform spoke of " increases due to a number of external factors facing all sectors of the travel industry, including rising fuel costs, labour shortages and disruption to the global economy ". He added: " As demand for travel remains extremely high, with businesses and consumers rushing to resume face-to-face meetings for work and leisure after the pandemic, we expect the cost increases we are seeing to continue for the rest of the year. ". Today, CWT and the GBTA share the same observation on the occasion of the publication of the Global Business Travel Forecast 2023 on 10 August. Patrick Andersen, Managing Director of CWT, explains: " Demand for business travel and meetings is back with a vengeanceThere is absolutely no doubt about it. Labour shortages across the travel and hospitality industry, rising commodity prices and a greater awareness of responsible travel are all having an impact on services, but there is no doubt that there is a need for more and better services. forecast prices are broadly in line with those for 2019 "says TMC's Managing Director.
The price increase would therefore merely compensate for the decline caused by the health crisis and the fall in demand. This is particularly the case in theaerialThis is a sector that has been particularly affected by border closures. The authors of the Global Business Travel Forecast point to a drop of 12 % in 2020 compared with 2019, then 26 % in 2021. In business class, prices would have fallen by 33% between 2019 and 2021, and by 24 % in economy class. While the figures unveiled on Wednesday by CWT and GBTA may be frightening, the two partners are calling for the expected increase to be put into perspective. The authors of the report state: " Prices are expected to rise by 48.5 % in 2022But even with this sharp rise, prices should remain below pre-pandemic levels until 2023. After an increase of 48.5 % in 2022, prices should rise by 8.4 % in 2023. ". However, CWT and GBTA believe that these increases should not scare away mobile professionals. " After two years of little or no spending, business travellers will probably be prepared to spend more on their tickets "according to the Global Business Travel Forecast.
L'hotels has not escaped the phenomenon of tariffs catching up after two lean years - a fall of 13.3 % in 2020 then 9.5 % in 2021 - but the picture is more nuanced. " Hotel prices have already eclipsed 2019 levels in some regions such as Europe, Middle East & Africa and North America and are expected to do so globally by 2023 "As the authors of the Global Business Travel Forecast point out. Nevertheless, they describe a multi-speed European market, in which France would not be the most affected destination. " Fares to certain destinations in continental Europe, in particular theGermany and the Francewill probably not exceed 2019 levels [in 2022] due to the economic impact of the invasion ofUkraine ".
Another focus of the study: the car rentalCWT and the GBTA are stressing that: "We are pleased to announce the launch of a new service for business travellers and travel managers, which has been a headache for several months now. CWT and GBTA point out that from now on: " Soaring prices, a shortage of vehicles and the need to know carbon emissions door-to-door are prompting business travel managers to take ground transport into account right from the trip planning stage. ". Shorter and weaker than in other business travel sectors, the fall in prices (-2.5% in 2020) has rapidly given way to a general rise: +5.1 % in 2021, then 7.3 % in 2022, and 6.8 % according to forecasts for 2023...
Finally, the meetings & events should also see fare increases well above pre-pandemic levels. For CWT and GBTA, organisers should even expect a increase of 25% compared with 2019. This is due in particular to all the events cancelled during the crisis, which are now crowding through the doors of MICE infrastructures. " In addition to pent-up demand, corporate events are now competing with many other types of events that were cancelled in 2020. And, as many companies gave up offices during the pandemic in favour of remote working, they are now booking meeting spaces when staff meet in person, further fuelling demand "say the authors of the report. They also mention shorter lead times because the health, economic and geopolitical context remains uncertain.
Despite this trend towards less anticipation, the report also attempted to identify the main event destinations for the coming year. Based on the bookings expected by the CWT Meetings & Events division, it appears that London (1st) will overtake Paris (2nd) in the EMEA market. New York, Sao Paulo and Singapore also figure prominently in the 2023 MICE atlas.
