Price projections for events
Daily delegate rates will rise across the board, prompting event planners to reduce group sizes or keep them at the same size year-on-year in an effort to manage budgets. The exception will be Asia Pacific, where a booming M&E industry will see group sizes increase as much as attendee costs.
Ongoing economic concerns throughout the Euro zone are making planners cautious. Daily attendee rates will remain flat as suppliers are forced to reduce prices to stimulate demand. Asia Pacific promises overall M&E growth and although demand will remain strong, demand vs supply will vary across the region as India and China see significant hotel investments.
More and more low-cost carriers are entering the global market, offering new products and services. Airlines in China and Singapore will lead the region in commanding the largest price increases in 2014. Germany and Russia-based airlines will yield the greatest price increases in Europe. It is expected that MIddle East airlines will expand their global networks throughout the next year.
The widest variation in projected airfares will be in Latin America. Argentina's and Venezuela's high inflation rates is likely to result in hikes of nearly 13% and 8% respectively. Brazil's prices will grow modestly.
Strong economic growth in 2014 will occur beyond China and India, which led 2013 expectations. While Chile significantly leads in expected GDP growth for next year, Indonesia and Peru join the ranks of India in expected 2014 performance.
Countries like Argentina and Venezuela, with inflation that is expected to significantly outpace GDP growth, will be particularly challenged, and travel prices will follow the overall substantial increases in cost of doing business in these locations.