Air prices expected to rise 1% in 2015
Guest Writers are not employed, compensated or governed by TD, opinions and statements are from the specific writer directly
Air fares are expected to increase 1% while hotel costs will rise 3.5% as demand from emerging markets outstrips the supply, according to a new price outlook.
Air prices are predicted to rise gradually during next year and could be as much as 2.2% higher with Latin America costs to go up the most at 3.5%. Low-cost carriers in the Asia Pacific and North America are set to affect prices in those regions, while Europe is set to see ‘modest growth’ in prices.
The Global Travel Price Outlook, issued by Carlson Wagonlit Travel (CWT) and the GBTA Foundation, said hotels will be in a “better negotiating position than they have been for some time in 2015” following stronger demand and investor interest, meaning prices will grow globally.
In contrast ground transportation is set to remain flat in its prices due to consolidation and strong competition, with the only increase expected in Latin America.
Overall business travel is set to pick up 5.1% in 2015.
“The study reveals that travel managers expect price increases next year across the board on travel categories including airfares, hotel room rates and rental car rates,” said Joseph Bates, GBTA Foundation vice president of research. “Risks to the forecast including the escalating Ukrainian crisis; declining European inflation; burgeoning debt in China and oil price shocks could potentially have a negative influence on travel demand and pricing however, so travel managers are advised to consider contingencies for these risks in their planning.”
Christophe Renard, vice president, CWT Solutions Group added: “With business travel prices on the rise, this study is the key to effective budgeting.”
Comments are closed.