Global hotel rates could increase by between 1 and 3 per cent, while air fares will go up 1 to 2 per cent, according to new predictions from BCD Travel.
The TMC’s 2020 Industry Forecast shows hotel prices will be driven by solid demand keeping occupancy high in most regions. The Travel Management Company: An agency which manages business travel for a company. said rate increases could be even higher in Asia (up between 2 and 4 per cent) – particularly in Japan, which will host the 2020 Summer Olympics, and Vietnam, where both leisure and business travel demand is holding strong.
Europe will see strong demand drive meetings costs up 3 to 4 per cent, according to the forecast, while rates will also increase in Sydney and Auckland.
Meanwhile, BCD Travel predicts airlines will raise airfares in most markets next year to offset higher fuel and labour costs, with global average ticket prices forecast to increase between 1 and 2 per cent. This comes despite slower economic expansion around the world.
However, a recover in demand in Latin America could see fares driven up as much as 3 per cent, while regional routes in Africa will remain in line with the global average, especially on those between the continent’s fastest-growing economies.
Intercontinental business class fares will go up by a modest 1 per cent, but regional business class tickets could see a 2 per cent increase. The sharpest rise will be seen on flights within Asia and Latin America – as much as 3 per cent in those regions – while competition from low-cost carriers means regional economy fares in Europe should remain flat.
Commenting on the forecast, Mike Eggleton, director of research and intelligence at BCD Travel, said: “As we approach 2020, corporate travel buyers face the prospect of a slow-down in advanced economies, while the performance of emerging markets improves. We believe this will restore the traditional growth gap that had recently narrowed between mature and emerging markets.”
Read the full version of the 2020 Industry Forecast here