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C W T - APAC & LATAM Forecasts 2014
Prices in most areas of travel spend are expected to grow modestly around the globe next year, with the most significant inflation expected throughout the Asia Pacific and Latin America regions. Price increases will begin to level off in most regions throughout the world compared to what travel buyers experienced this year, as booming economies like Asia Pacific's begin to normalize, and as uncertainty remains in Europe. +++++ APAC (ASIA Pacific) has experienced strong economic growth over the past several years, which quickly drove prices upward. Growth in 2014 is expected to stabilize, which will likely lead to modest price increases, although specific results vary widely by country. +++ Airline prices should increase about 2.5 percent in the APAC region during 2014, largely due to the number of low-cost carriers (LCCs) entering the market and holding pricing down. +++ Hotel rates in APAC will likely increase about 3.5 percent in 2014 with Singapore leading the way (8% increase) and followers are Japan (7%) Australia (6%) and Hong Kong (4%). +++ Car rental rates will likely experience the highest inflation of anywhere in the world. CWT forecasts a 5.9 percent increase in 2014. Two pricing scenarios exist in LATAM's air segment. Countries with healthy economies like Brazil and Chile will experience solid price inflation, while countries with weaker economies like Argentina, Colombia, Mexico, and Peru expect moderate decreases to only slight growth, and CWT expects 2014 airline pricing in the region to increase 1.3 percent overall. Average daily hotel rates in LATAM will likely rise about 6.3 percent during 2014. Brazil will see the largest increase in hotel rates, due to strong demand and limited supply; however, that will soon change, as inventory is rapidly being added in Brazil to accommodate the 2014 FIFA World Cup and the 2016 Summer Olympics. CWT is a global leader specialized in managing business travel and meetings and events and CWT's forecast combines a statistical model that uses CWT global client data with the market and industry knowledge of CWT experts around the world