CWT Energy, Resources & Marine Shares Insights for 2014
09 OCTOBER, 2013
Energy-specific forecast helps clients anticipate pricing and trends for the coming year.
CWT Energy, Resources & Marine (ERM) today released its 2014 Travel Price Forecast supplement dedicated to the global ERM industry. The report shows moderate travel price inflation can be expected across the globe next year in line with modest economic growth.
The free-to-download study gives insight and useful recommendations for ERM clients around the world and includes 2014 air and hotel projections for cities connected with all areas of the energy sector as well as expected ERM global travel trends.
The forecast highlights the importance of key ERM markets such as Latin America, Australia and the Middle East. Africa is also highlighted in the report as a key growth market, with Ghana, Mozambique, Tanzania, Libya and Algeria experiencing significant recent growth driven by exploration, findings and the release of new assets by local governments.
Key global ERM trends explored in the supplement include:
The future of single-use payment cards
Set to transform expense management, the use of “virtual cards” replaces the need for a physical credit card – ideal for energy companies, who heavily use contractors and other non-traditional work arrangements to accomplish business. These cards also help corporations reduce fraudulent activity, maintain central billing, deliver PCI compliant payments and reconcile expenditures using complete and accurate data.
Maximising special marine and offshore fares
Airlines have recently opened up dedicated ERM fares, creating greater opportunity for travel managers to access these flexible, discounted airfares, which can be up to 75 percent off published fares in some cases.
Sleeping at sea
Significant increase in Floating Production, Storage, and Offloading units (FPSO) is a trend anticipated only to continue. Along with old ships converted into “floating hotels,” FPSOs now often include living quarters to accommodate personnel and may include offices, dining and recreational areas.
Attracting talent to the energy sector
Business travel has become an employment retention opportunity within the energy industry, as workforce demographics change and companies look to recruit the next generation, which sees business travel as an enticing prospect. Travel managers are looking at amenities allowed within their programmes and policies accordingly.
“Travel in the energy industry looks very different than travel for organisations in other sectors, from the cities they visit to the non-traditional air and hotel accommodations they use to get the job done,” commented David Moran, global leader of CWT Energy, Resources & Marine and executive vice president, CWT Global Marketing and Enterprise Strategy. “For CWT Energy, Resources & Marine we see 2014 as an exciting year of growth as we look to continuing to strengthen our global network and presence in emerging markets.”
The projections in CWT’s 2014 Travel Price Forecast, including this CWT Energy, Resources & Marine edition, were formed from the combination of a.) a statistical model that evaluates historical price behaviour and forecasts future price references; b.) the market-specific expertise and travel industry knowledge of CWT personnel worldwide; and c.) macro-economic information sourced from IHS Global Insight, the International Monetary Fund Research Department, the Society of Petroleum Engineers, the United Nations, and others. Projections were calculated based on the transaction data of CWT’s global client portfolio, including clients’ travel footprints and patterns, over the past six years. Additionally, key macroeconomic and per-country indicators, such as current and expected gross domestic product (GDP) growth, the consumer price index, unemployment rates, and crude oil prices, were used in CWT’s statistical model. Country-level ranges are indicative of variations among markets within each country and variations among different categories of service. All air statistics represent Point of Origin and include all trip types (long and short haul/domestic, continental, and intercontinental).
About Carlson Wagonlit Travel CWT is a global leader specialising in managing business travel and meetings and events. CWT serves companies, government institutions and non-governmental organisations of all sizes in more than 150 countries and territories. By leveraging both the expertise of its people and leading-edge technology, CWT helps clients derive the greatest value from their travel programme in terms of savings, service, security and sustainability. The company is also committed to providing best-in-class service and assistance to travellers. In 2012, sales volume for wholly owned operations and joint ventures totalled US$27.7 billion. As part of its commitment to responsible business, CWT is a signatory of the United Nations Global Compact Ten Principles. For more information about CWT, please visit our global website at www.carlsonwagonlit.com.