Volatility Set To Define Travel in Energy, Resources and Marine Sector in 2017
CWT launches 2017 Travel Trends Forecast for the Energy, Resources & Marine Sector
20 OCTOBER, 2016
Driven by the combination of only slight growth in oil prices, minimal growth in both mature and emerging economies, and increases in alternative and renewable energy resources 2017 will be a volatile year for travel in the energy, resources and marine sector.
These are the key findings of the Carlson Wagonlit Travel 2017 Energy, Resources and Marine Forecast, launched today. The annual forecast provides travel buyers with comprehensive data to plan and budget for the coming year.
“There are economic headwinds that will have a significant impact on travel within the energy, resources and marine industry,” said Raphael Pasdeloup, senior vice president, global program solutions, CWT Energy, Resources & Marine. “We expect there will be some growth, but as the data from the report shows, there will also be volatility. Travel managers need to understand how these pressures will impact their travel programs, to keep them efficient and compliant.”
In the US, air travel will remain constant, neither growing nor shrinking, in 2017. Other areas of the Americas are likely to remain stable, but see some pricing volatility with regional carriers being aggressive in their pricing.
While hotel stays and rates may remain flat or even decrease globally, the Americas are likely to see a small price increase in hotel rates due to industry consolidation.
In China, airfares are expected to increase in 2017. However, the overall Asia Pacific market should remain stable as low cost carriers continue to have an impact.
In Europe and the Middle East, air pricing is expected to remain flat or decrease slightly.
Raphael Pasdeloup concluded, “Travel managers have several options to improve their purchasing in 2017. A quarterly review of their air spend can help them negotiate better rates with the airlines. Travel managers should also consider making the most of the decreased or flat hotel rates to negotiate longer-term deals.
This free report, which can be downloaded at carlsonwagonlit.com, helps travel managers make more informed choices to keep their spending efficient.
Macroeconomic information sourced from Moody’s Analytics, the International Monetary Fund Research Department, the United Nations and others
Projections were derived based on transaction data from CWT’s global client portfolio, including clients’ travel footprints and patterns, over the past six years. Key macroeconomic and per-country indicators, such as current and expected GDP growth, the consumer price index, unemployment rates and crude oil prices, were used in the statistical model, as well as key supply-side drivers sourced from OAG and STR Global. All air statistics represent point of origin and include all trip types (long and short haul/domestic, continental and intercontinental).
About CWT Energy, Resources & Marine
CWT Energy, Resources & Marine provides specialized travel management solutions for organizations operating in oil and gas, diversified resources and mining, offshore, marine services and alternative energies. Building on more than 30 years of experience, we work closely with clients worldwide to find the right solutions for their complex travel needs, providing first-class service and leading-edge technology and products.
CWT is a global leader specialized in managing business travel and meetings and events. CWT serves companies, government institutions and non-governmental organizations of all sizes in more than 150 countries and territories. By leveraging both the expertise of its people and leading-edge technology, CWT helps clients derive the greatest value from their travel program in terms of savings, service, security and sustainability. The company is also committed to providing best-in-class service and assistance to travelers. In 2015, sales volume for wholly owned operations and joint ventures totaled US$24.2 billion. As part of its commitment to responsible business, CWT is a signatory of the United Nations Global Compact Ten Principles. For more information about CWT, please visit our global website at www.carlsonwagonlit.com. Follow us on Twitter @CarlsonWagonlit and Linkedin