Airlines
are extending their heavily discounted marine and offshore fares to a wider
range of travelers from energy, resources and marine clients, according to
Carlson Wagonlit Travel's 2014 forecast supplement for the sector. "With
greater opportunity than ever before, travel managers should review the
availability of these flexible, discounted airfares relative to their traveler
profiles to ensure they are supplementing existing contracts and published
fares to fully benefit where possible: up to 75 percent off in some cases,"
the travel management company wrote. "Available on carriers worldwide,
these fares include business or economy class, one-way or roundtrip, yet do not
require advance purchase, are fully refundable and changeable without penalty,
and allow travelers to keep their frequent flyer miles."
CWT
also reported that energy companies are considering relaxed travel policies to
improve employee recruitment and retention, which would help to address a
growing talent shortage in the sector. The underlying problem is a phenomenon
known as the Great Crew Change, occurring as energy exploration and production
companies expect during the next decade to lose 50 percent of their experienced
managerial personnel through retirement.
"With
companies challenged to find talented and experienced workers, business travel
has become an employment retention opportunity and travel managers are looking
at their policies and programs accordingly," CWT explained. "Savings
on class of ticket, accommodations and other traveler-friendly options should
be weighed against unfavorable implications, i.e., constant recruiting, hiring
and training of new personnel, which may cost significantly more than any
travel perks long-term."
The CWT
forecast supplement also provided air and hotel price forecasts for
destinations relevant to the energy, resources and marine sector. Latin America
is tipped to be the region with the highest airfare increases, including Buenos
Aires (fares on average expected to rise 7 percent to 13 percent versus 2013)
and Caracas (fares up 7percent to 10 percent). Parts of the Middle East will see
even more extreme fare increases, including Iraq where both Baghdad and Basra are
expected to experience fare hikes of 17 percent to 19 percent, and Amman,
Jordan (up 5 percent to 10 percent).
However,
CWT anticipates lower fares in other parts of the region, including Abu Dhabi
and Dubai (where fares are forecast to drop as much 6 percent year over year) and
Kuwait City (fares down up to 3 percent).
In
North America, CWT predicted an average 2014 airfare decline in Dallas (down as
much as 2 percent) and average increases in Houston (1 percent), New Orleans (1
percent) and Anchorage (as much as 3 percent).
Turning to accommodation,
CWT forecast rates to rise sharply
worldwide. Only a handful of destinations relevant to the sector will buck the
trend, such as Cairo (down 1 percent to 6 percent) and Mumbai (down as much as 4
percent). The largest increases are expected in Jakarta (up 7 percent to 12 percent); Dubai and Jeddah (both up between 5 percent and 9 percent); Buenos
Aires, Manila, Beirut and Riyadh (each up 3 percent to 8 percent); and Lagos
(up 4 percent to 8 percent).