Global hotel rates will increase around the world by 1-3% in 2019 and air fares by 1-2% in most markets, according to leading business travel management company BCD Travel’s newly released 2019 Industry Forecast. The increase in hotel rates is largely due to demand growth slightly outpacing supply in most markets. Air fares are expected to remain flat in Africa, decrease 2% in Latin America and increase by 1% or 2% in all other regions.
The 2019 Industry Forecast provides travel and procurement managers with projected prices in preparation for supplier negotiations and budgeting. The forecast, published in prior years by Advito, the consulting arm of BCD Travel, includes supply, demand, and pricing trends for air, hotel, meetings, and ground transportation for all major regions of the world.
Globally, average ticket prices for regional and intercontinental travel in both business and economy class are expected to rise by 1% in 2019. Regionally, average ticket prices will vary between -2 and +3%, with the largest decreases seen in economy fares in Latin America and the largest increases in business class fares in the Southwest Pacific region. In Latin America, increased competition will be responsible for downward pricing pressure while in the Southwest Pacific, flat capacity and increasing demand will lift regional air fares.
Hotel rates are expected to increase by 1-3% worldwide, with little variation by region. Much wider ranges can be seen on a country level, such as in India, where a 6% to 8% rate increase is forecast. Inversely, lower rates are most likely in African markets, particularly in Ethiopia and Morocco. In the U.S., hotel occupancy is generally higher year-over-year, especially in the major cities, thanks to the continued strength of the U.S. economy. Travelers may experience severe availability issues in some locations.
In addition to its pricing forecasts and buying strategy recommendations for air, hotel, meetings and ground transportation for each major region of the world, BCD Travel’s 2019 Industry Forecast also includes discussions of:
- Travel risk and security
- Hotel chainwide agreements
- Alternative accommodations
- Global and regional macroeconomic trends
- Hotel mergers and meetings
- Hotel dynamic pricing
- And more
The BCD Travel 2019 Industry Forecast is available here.
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