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CWT: Global travel pricing set to slow down in 2020; flights to rise 1.2%, hotels 1.3%
CWT Global travel pricing set to slow down in 2020; flights to rise 1.2%, hotels 1.3%
Minneapolis / Alexandria, 31 July 2019: After posting sharp rises in 2019, prices in the global travel industry are likely to slow in 2020, with flights rising a modest 1.2%, hotels rising only 1.3%, and rental car rates up 1%, according to the sixth annual Global Travel Forecast, published today by CWT and GBTA. While the global economy is doing well overall – and expected to grow a solid 3.6% in 2020 – a raft of uncertainties are set to put a damper on pricing. “The risks and ambiguity have increased over the past few months – not least the threat of escalating trade wars, the impact of Brexit, possible oil supply shocks, and the growing likelihood of recession,” said Kurt Ekert, CWT’s President and CEO. “This forecast will help travel buyers make the right decisions in an increasingly challenging environment.” Released today by the Global Business Travel Association, the voice of the global business travel industry, and CWT, the B2B4E travel management platform, the 2020 Global Travel Forecast uses data generated by CWT Solutions Group, to give an early look at the trends and developments that will shape the business travel industry in the year ahead. “Technological advancements and an increasingly volatile economic and political landscape across the globe have changed the way today’s travel buyers need to do their jobs,” said Scott Solombrino, GBTA COO and Executive Director. “This annual forecast provides insights into the key drivers forcing these shifting priorities and gives a road map for travel buyers looking to plan their 2020 travel programs.”
Asia Pacific Air: 1.3% Hotel: 1.3% Ground: 0.5%
Asia’s expansion has slowed down due to worsening US-China relations, tighter global financial conditions, and natural disasters. But the region remains the most dynamic, with steady GDP growth, benign inflation, and a sense of optimism.
Europe, Middle East & Africa Eastern Europe: Air: -0.2% Hotel: 0.7% Ground: 1.5%
The International Monetary Fund (IMF) expects steady growth, ranging from 0.3% in the Middle East to 1.6% in Europe, and 3.6% in Africa. Across Europe, labor unrest, climate change protests, global trade wars, rising oil prices and regional terrorism all have the potential to cause a slowdown.
Latin America Air: -1.6% Hotel: -0.4% Ground: 1%
Economic activity in Latin America continues to grow – albeit slower than anticipated – and is expected to rise 2.5% in 2020. A volatile political and economic situation in some of the largest economies like Argentina, Mexico and Brazil will hurt prospects.
North America Air: 2.3% Hotel: 2.3% Ground: 1%
While the US economy is thriving, there is growing uncertainty, due to tariffs and trade wars. US GDP growth is set to slow to 2.1% in 2019, and slow further in 2020 and 2021, to 2% and 1.8%, respectively.
For more detailed information, download the 2020 Global Travel Forecast now.
The projections in the 2020 Global Travel Price Forecast are based on:
Projections are based on transaction data from CWT’s global client portfolio, including anonymized client travel patterns, over the past ten 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.
More information Learn more about the Global Travel Forecast and the price projects and trends that lie ahead in 2020 during an education session at GBTA Convention 2019 on Monday, August 5 at 9:30 am CST in room S504ab.
A webinar will also be taking place for a deeper dive into the research findings featuring experts from CWT, Rockport Analytics and GBTA. This session will take place on Thursday, September 19 at 9:00 am CST. Register today.
About the Global Business Travel Association The Global Business Travel Association (GBTA) is the world’s premier business travel and meetings trade organization headquartered in the Washington, D.C. area with operations on six continents. GBTA’s 10,000-plus members manage more than $345 billion of global business travel and meetings expenditures annually. GBTA delivers world-class education, events, research, advocacy and media to a growing global network of more than 28,000 travel professionals and 125,000 active contacts. To learn how business travel drives lasting business growth, visit www.gbta.org.
CWT is a Business-to-Business-for-Employees (B2B4E) travel management platform. Companies and governments rely on us to keep their people connected – anywhere, anytime, anyhow – and across six continents, we provide their employees with innovative technology and an efficient, safe and secure travel experience. Every single day, we look after enough travelers to fill more than 100,000 hotel rooms, while our meetings and events division handles more than 100 events every 24 hours.
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Media contact: Taylor Aaron Senior Manager, Global Communications T: +1 612 244 9420
Colleen Gallagher
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