If you’re planning an interstate or local holiday in Australia, don’t delay.
A new report has predicted that travel prices in Australia will rise by nearly twice the global average next year.
Released by the Global Business Travel Association (GBTA), and corporate travel management platform, CWT, the 2020 Global Travel Forecast anticipates airfares, hotel rates and ground transport prices down under to grow by 4.7%, 4.4% and 0.6% respectively (in local currency terms).
According to report shows that price hikes for airfares and hotels are nearly double the 2.3% global average for both sectors, and the third highest in the Asia-Pacific region, after Indonesia and India, the data shows.
Despite the gloomy outlook, CWT Solutions Group Asia Pacific manager Jaclynn Kidd said domestic travel would “pick up further in 2019 and 2020 due to the weakened Australian dollar”.
“A lot of international routes are also opening up into Australia, and with more international travelers, there is a compression in the supply of hotel rooms in major cities, as well as secondary cities like Canberra and Brisbane,” she remarked.
“However, we do see hotels reacting to this demand as more hotels are being built, and this situation is likely to stabilize towards the end of 2020 going into 2022.”
Globally, the sharp prices that were posted in 2019 are expected to slow in 2020, with flights predicted to grow a modest 1.2%, hotels 1.3%, and rental cars 1%. Despite this, CWT warns of “a raft of uncertainties’ that could affect prices.
“The risks and ambiguity have increased over the past few months – not least the threat of escalating trade wars, the impact of Brexit, possible oil supply shocks, and the growing likelihood of recession,” CWT President and CEO Kurt Ekert said.
Price predictions at a glance:
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