Airfares and hotel prices are set to rise by 8.5 per cent and 9.5 per cent respectively for UK business travellers next year, according to research by Carlson Wagonlit Travel (CWT) and the GBTA.
The price hikes will be higher in the UK than in Western Europe as a whole, where airfares are set to rise by 5.5 per cent in 2018 while hotel rates are forecast to go up by 6.3 per cent year-on-year.
CWT/GBTA’s 2018 Global Travel Forecast also predicts that ground transport prices in the UK will be flat next year due to “downward pricing pressure” caused by increased competition in the sector.
The biggest increase in airline prices in the UK is set to be for continental business fares, which are forecast to rise by 8.7 per cent in 2018, while intercontinental economy prices are set to go up by 8.5 per cent.
For hotels, CWT is predicting that rates from the UK will go by 8.2 per cent year-on-year for midscale properties while upscale hotel prices will rise by 10.7 per cent.
The UK’s anticipated price rises in 2018 will be part of a “sharp” increase in global travel costs next year – CWT is predicting that overall global airfares will increase by 3.5 per cent while hotel rates will be around 3.7 per cent higher and ground transport prices will go up by 0.6 per cent.
Kurt Ekert, CWT’s president and CEO, said: “The higher pricing is a reflection of the stronger economy and growing demand.
“The global numbers from this forecast should be considered strong leading indicators of what 2018 will mean for global businesses, as we anticipate higher spending.”
The report suggests that any impact from Brexit is not likely to be felt until 2019 when the UK is formally due to leave the EU. There should be “no measurable impact” during 2019 on travel prices.