2018 is coming to an end and most companies that run a calendar year are fine-tuning their budgets for the coming year. Andrea Tsakanikas, an experienced travel manager and Founder of CrewFacilities.com, advises companies to gear up for a possible increase in the cost of employee travel.
The latest Global Travel Forecast published recently shows that hotel costs may rise by about 3.7 percent while air fares will rise by about 2.6 percent in the coming year. These increases are anticipated due to the current boom in the world economy that has increased business travel across the different regions of the world.
The outlook for 2019 also shows that technology is going to play an increasing role in the hospitality industry, with apps giving travelers greater autonomy to customize their travel experience. Hotels are scrambling to cope with the higher demand for such customized lodging, and boutique lodging services are increasingly becoming the norm.
Ground transportation is expected to register lower increases in price levels, with average rate increases of approximately 0.5 percent. However, the last quarter of the year may see car rental companies working hard to raise their rates further in light of the increases in oil prices in the course of the year.
While these price increases may be good news to the hoteliers, aviation and ground transportation companies, you may need to rethink your employee travel management so that the rising costs don’t erode the revenues of your company.
Andrea Tsakanikas recommends that companies should partner with experienced travel management firms like CrewFacilities. Such experts are needed now more than ever before in order to help companies save and keep travel costs affordable in the rapidly changing travel industry. The travel manager will leverage their skills and experience to negotiate favorable rates so that you stay within budget without scaling down the comfort and safety of your teams.