CWT Traveler

November 2018

CWT

Price forecast for business trips in the energy and resources industry

Companies in the Energy, Resources and Marine sectors (ERM) are expected to recover in the coming year as oil and commodity prices continue to rise and global GDP growth is projected to increase by 3.4% in 2019. At the same time, this will lead to a growth in business activity and thus to more business trips, which will again lead to rising prices. These are the results of the 2019 Energy, Resources & Marine Travel Forecast, published on behalf of the CWT division responsible for these sectors.

The report anticipates an increase in air prices of 4.8 percent and a similar percentage for hotel prices in Western Europe. One major cause of uncertainty here is Brexit, which could shift part of business travel to neighboring countries if companies decide to move their headquarters to Belgium, Holland or Germany, for example.

Besides prices, traveler safety has a strong impact on the industry. Many key markets and exploration hubs are located in politically volatile regions in Africa, South America and the Near East. Extreme weather and remote destinations also put the focus on security aspects. In this case, it is important to always have a plan B to protect employees and prevent longer production outages (along with the associated financial losses). Well-designed travel management is indispensable.

Technology is key when it comes to safety and security, especially in the ERM sector, e.g. for localizing and communicating with travelers. At the same time, online booking systems are pushed to their limits because travel usually involves complex processes and many elements such as helicopter transfers to oil rigs cannot be booked via regular booking channels. This requires the expertise of a travel provider like CWT, which has been supporting ERM companies for decades.

The complete forecast can be downloaded here.

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