CWT North America Releases 2011 Travel Forecast to Clients
CWT anticipates a number of suppliers will successfully implement price increases next year, indicating overall increases in business travel demand as economic conditions in North America continue to improve.
Carlson Wagonlit Travel North America has released to its clients forecasted 2011 pricing and rate information for air travel, hotel stays, use of ground transportation, and meeting and event spending in North America. CWT anticipates a number of suppliers will successfully implement price increases next year, indicating overall increases in business travel demand as economic conditions in North America continue to improve.
Air pricing. CWT forecasts domestic economy airline pricing will increase 3-5%, while domestic first and business class pricing will decrease 2-7%. Meanwhile, international economy and business classes are each expected to increase 3-5%, while international first class should increase by 4-6%. Factors impacting overall air pricing in 2011 include higher demand for travel, increases in crude oil prices, capacity reductions of 2% domestically and 1% internationally compared to 2010, and limited availability of highly discounted fares.
Hotel pricing. CWT forecasts average daily hotel rate increases of 6.4–7.4% in the United States and 4.7-5.4% in Canada for 2011. In the United States, CWT expects the Northeast region to experience substantially higher hotel rate increases than the national average, ranging from 12-12.5%. The highest Canadian increases will occur in the provinces of Manitoba and Saskatchewan, at 6.7-10.1%, also well above the anticipated national average.
Ground transportation pricing. CWT forecasts rental car prices will decrease 1.5-2% based on long-term corporate rates priced to earn and keep corporate business, even as tight inventory levels substantially drive up rental car rates for leisure travelers and companies without negotiated rates. Limousine and black car rental prices are expected to decrease 3-5%. Conversely, rail travel prices in North America are expected to increase 4-7%, as suppliers like Amtrak enjoy record-breaking ridership increases to date in 2010.
Meetings & Events spending. CWT forecasts corporate spending on meetings and events will range from 1.9-2.3% of an organization's top-line revenues. Spending per attendee, per day will increase 7-11% based on returning demand combined with the limited number of suppliers of meeting services like hotels, food and beverage, etc.
CWT North America's annual travel forecast provides guidance to travel buyers as they budget for and negotiate their managed travel programs for the upcoming calendar year, and is designed to supplement their organizations' own forecasting and budgeting exercises. Please click here to view the 2011 forecast in its entirety.
