Hotel prices globally could increase by 3.7%, airfares by 2.6% in 2019: Report

MUMBAI: The cost of travel is expected to rise sharply in 2019, hotel prices are expected to rise 3.7% and air fares by 2.6%, under the effect of economic growth and rising oil prices.

"Prices are expected to rise in many global markets as inflation remains low," said Kurt Ekert, president and chief executive officer, Carlson Wagonlit Travel (CWT).

The Fifth World Travel Forecast, published by CWT and the Global Business Travel Association, with the support of the Carlson Family Foundation, indicates that airfare is likely to become more expensive as a result of higher oil prices and pressure competitive. potential trade wars and increasing tariff segmentation to improve returns.

The report's projections are based on transaction data from CWT's global customer portfolio, including clients' anonymized travel patterns, over the past seven years. It also includes key macroeconomic and country-specific indicators, such as current and projected GDP growth, the consumer price index, unemployment rates, and crude oil prices.

Airfares are expected to increase by 3.2 per cent in Asia Pacific next year, of which 3.9 per cent in China, 7.5 per cent in New Zealand and 7.3 per cent in India.

"We expect that strong private consumption will continue to drive growth in India, despite the impact of the demonetization and implementation of the goods and services tax that is beginning to take hold. "Blur," says the report.

According to the report, the only exception in this region is Japan, where prices are probably down 3.9% due to the country's additional capacity in preparation for the 2020 Olympic Games.

In Western Europe, air fares are expected to increase by 4.8%, the rise being observed in countries such as Norway (11.5%), Germany (7.3% ), France (6.9%) and Spain (6.7%). hundred).

Eastern Europe and countries in the Middle East and Africa, by contrast, will experience a decline of 2.3% and 2%, respectively.

Meanwhile, the prospects for hotels for next year are motivated by the overall increase in air travel, which will fuel the demand for rooms.

In Asia-Pacific, hotel prices are expected to rise 5.1%, with New Zealand recording an increase of 11.8%.

However, in Japan, prices are expected to fall by 3.2% in 2019.

For ground transportation, including on-demand, shared, electric and connected cars, rates are expected to remain stable in the Asia-Pacific region.

In New Zealand, whiteness is expected to increase by 4%, while in India, rates will increase by 2.7% and Australia by 2.4%.

Prices in Europe, the Middle East and Africa are also expected to remain broadly stable.

However, countries like Finland, France, Germany, Italy and Spain are expected to see the cost of land transport increase by more than 4%, while Denmark and the United Kingdom could see increases of 3% and 2% respectively.