Volatility set to define travel in Energy, Resources and Marine sector in 2017

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.

CWT Energy, Resources & Marine provides specialist travel services to the sector, managing over 700 worker rotations every day of the year.

Note to editors

Market volatility and political changes may have an impact on the projections in this report.

Methodology

The projections in the 2017 Energy, Resources and Marine Forecast are based on:

• A statistical model, developed by market and economic research firm, Rockport Analytics, that evaluates historical price behavior and forecasts future price references
• The market-specific expertise and travel industry knowledge of CWT Energy, Resources & Marine and CWT Solutions Group personnel worldwide
• 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).