Travel Costs To Rise in 2013
The cost of travel is projected to strongly increase in 2013. This is despite weaknesses in the U.S. economic recovery, downturns in Latin America, slow growth in Asia, and continued flat to negative growth in Europe. In a white paper just released by the Global Business Travel Association, a survey of major U.S. corporate travel buyers indicated price rises that included:
• 4.6 percent in domestic economy airfare, to $429 per trip;
• 8.3 percent in international economy airfare, to $1,318 per trip;
• 3.7 percent for domestic hotel rates, to $161 per night; and
• 8 percent in international hotel rates, to $297 per night.
Pricing pressures are also being felt locally. Cleveland hotel room rates are edging up due to a stronger local economy and a shrinking CBD inventory. Two major properties, The Crown Plaza (converting to Westin in 2014) and Embassy Suites (converting to rental apartments) shut down in 2012. The Horseshoe Casino has also blocked significant room nights in the Renaissance Hotel, Marriott Key Center, and Ritz Carleton properties increasing demand in remaining hotels. In addition, strong forward booking for the new Cleveland convention center threatens to absorb new room inventory coming online in the next 36 months.
With years of depressed room pricing, Cleveland hoteliers are relieved to see broad sunlit uplands ahead. But remember, CWRU employees, students, and their families can still get relief with university-negotiated hotel rates. Visit the CWRU Travel Services website for preferred-vendor discount pricing.