Slower growth for 2011 business travel, says annual forecast

Slower growth for 2011 business travel, says annual forecast

Higher supplier prices and tight capacity controls mean tough negotiations for businesses looking to control travel costs in 2011, according to a global annual study. The study, commissioned by Carlson Wagonlit Travel (CWT), interviewed 187 travel managers around the world, each with responsibility for more than US$5million of corporate travel spending. Its report said that - while total air, hotel, rail and car bookings had a double-digit increase last year - prospects for 2011 were more uncertain. CWT confirmed that the meetings and events industry (MICE) saw growth in 2010 and is likely to recover fully in all regions over the next few years. Average spend per attendee is expected to increase by seven to eleven percent. Elsewhere, CWT expects hotel prices to increase in 2011. “Rates, prior to negotiations, have risen by five percent on average compared to rates in 2010,” said the report. “This varies considerably by region and city, but higher category accommodation is seeing the highest increases. Deluxe property prices have increased by six percent for example compared to three percent for economic priced property.” The full report Travel Management Priorities in 2011: Insights into the Rebound is available at www.carlsonwagonlit.com

Gary Marshall
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Gary Marshall
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