Volatility set to define travel in energy, resources and marine Sector in 2017: CWT report

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, according the findings of the Carlson Wagonlit Travel (CWT) 2017 Energy, Resources and Marine Forecast. 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. 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 programmes, to keep them efficient and compliant,” said Raphael Pasdeloup, senior vice president, global program solutions, CWT Energy, Resources & Marine.

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. 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.”