Editor's Note: Some linked articles may be behind subscription paywalls.
1. Prices Still On the Rise for Business Travelers
Business travelers around the world should expect to see prices for airfares, hotels, rental cars and more continue to rise this year and throughout 2023, according to the 2023 Global Business Travel Forecast from CWT and the Global Business Travel Association.
Citing rising fuel prices, labor shortages and inflationary pressures, the report estimates hotel rates globally to go up 8.2% next year, ground transportation to go up by 6.8% and airfare to rise by 8.5%. The data also shows 2022 cost-per-attendee for meetings and events is expected to be 25% higher than it was in 2019, and rise an additional 7% next year.
“What we are seeing now are multiple factors coming into play when corporate travel buyers and procurement officers model their travel programs,” Suzanne Neufang, CEO of GBTA, said in a news release.
However, today’s U.S. inflation report is expected to show a bit of a reprieve, thanks to lower gas and airfare prices in July, according to a report in the New York Times. Economists warn that even if inflation in the U.S. is slowing now, moderations may not last and further drops may require more from the Federal Reserve.
2. Supply-Chain Pressures Easing
Supply-chain pressures have been easing in recent months, and while global rates remain high and ports are still busy, experts predict a smoother supply chain should lead to less pricing pressure soon, according to a report in the New York Times.
“It’s a massive traffic jam that is now unclogging,” Flexport Chief Economist Phil Levy told the newspaper.
Costs to move shipping containers from China to the West Coast have dropped from $18,346 last year to around $6,632 this year.
3. Canada Posts Pandemic Performance Highs
June was a high point for hotel performance in Canada, according to data from STR, CoStar’s hospitality analytics firm. The country’s hotels notched their best performance since the pandemic began, with monthly average room rate reaching an all-time high of 197.87 Canadian dollars ($154.23), growth of 8.8% over June rates last year.
June’s revenue per available room of CA$141.97 was the highest since August 2019, and occupancy of 71.7% was the highest since September 2019.
Toronto drew the highest occupancy at 84.4%. Montreal, which hosted the Canadian Grand Prix in June, reached 75.8% occupancy.
4. Ukranian President Calls For Widespread Travel Ban for Russians
Ukraine’s president Volodymyr Zelensky is calling on Western countries to impose a more widespread travel ban on Russians, telling the Washington Post that “the most important sanctions are to close the borders — because the Russians are taking away someone else’s land.”
Currently it is difficult for Russians to travel internationally, since most of Europe and North America have banned Russian airlines from flying over, but Russian citizens are still able to apply for visas to travel to the United States.
5. AAHOA Launches Women's Empowerment Program
The Asian American Hotel Owners Association launched ElevateHER, a program designed to elevate, educate and empower the female hoteliers in the association and across the industry.
In a news release, AAHOA executives say the program will offer networking and educational opportunities for women hoteliers and hospitality industry professionals, and elevate AAHOA as a resource and advocacy group for women in the industry.