BCD Travel says it expects global hotel rates and air fares to increase in 2019, with demand driving trends across the globe.
The TMC’s 2019 Industry Forecast provides price projections, which it says helps travel buyers prepare for supplier negotiations and budgeting for the year ahead. The report was previously published by BCD Travel’s consulting arm Advito and includes supply, demand and pricing trends for air, hotel, meetings and ground transportation for all regions of the world.
According to BCD Travel, global average ticket prices for both regional and intercontinental air travel in business and economy classes will increase by 1 per cent.
However, increased competition in Latin America will drive downward pricing pressure, resulting in a 2 per cent decrease in economy fares for the region. Meanwhile, business class tickets in the Southwest Pacific could see a 3 per cent rise resulting from flat capacity and increasing demand.
Prices for regional travel in Europe will increase by 2 per cent, while intercontinental fares will see a more moderate 1 per cent rise.
Global hotel rates will increase by 1 to 3 per cent, with BCD Travel predicting little variation among the regions although wider ranges will be seen on the country level. For instance, India could see rates go up by 6 to 8 per cent, while Ethiopia and Morocco might experience a drop in prices.
In the US, hotel occupancy rates are generally higher year on year, but demand for rooms is outpacing supply, which could lead to a rise in rates.
As well as pricing forecasts, the report looks at issues facing travel managers in the next year, including travel risk and security, hotel chain-wide agreements, alternative accommodation, global and regional macroeconomic trends, plus the impact of hotel mergers and the emergence of dynamic pricing models.
Read the full BCD Travel 2019 Industry Forecast here