If you’re looking to travel next year (and hey, who isn’t?), or you’re in the business of selling travel, be prepared for higher costs for flights, accommodation and even ground transportation.
According to the Global Travel Forecast study, travel prices are expected to “rise sharply” in 2019, with flights increasing by 2.6% and hotels by 3.7% worldwide. The outlook for ground transportation is a little better, with an increase of only 0.6% expected.
Published by the Global Business Travel Association (GBTA) and Carlson Wagonlit Travel (CWT), the study found that a growing global economy, rising oil prices and trade issues would fuel the upwards trend.
“While most major markets appear to be trending in the right direction, downside risks remain for the global economy given the rise of protectionist policies, the risk of stoking trade wars and Brexit uncertainty,” GBTA executive director and COO Michael W. McCormick said.
The study predicts that aviation will be shaped by more ultra-long haul flights, a push towards NDC, and competition from low-cost carriers,
“which are not only multiplying but also fighting for long-haul routes”.
In Asia Pacific, airfares are forecast to rise by 3.2%, with prices ex-New Zealand to increase by 7.5%.
In Western Europe and North America, the report sees prices rising by 4.8% and 1.8% respectively.
The hotel outlook is expected to run parallel to an increase in air travel, with technology and personalization set to play an even greater role in guest services.
In APAC, hotel prices could rise by 5.1%, with NZ experiencing an 11.8% surge.
In Australia, 2019/20 accommodation prices are forecast to grow 3.4% each year.
European and North American hotel rates are anticipated to increase by 5.6% and 2.1% respectively.
NZ and Australia can expect to see ground transportation costs grow by 4% and 2.4%.