Regardless of whether they’re heading for a business hotel in Rayong or a vacation resort in Ibiza, travellers will spending a little bit more in 2019, according to the recently published fifth iteration of the annual Global Travel Forecast.
The report, made by the Global Business Travel Association (GBTA), and the Carlson Wagonlit Travel (CWT) with support from the Carlson Family Foundation, says that hotel prices will go up by 3.17% in 2019, while flight rates will rise by 2.6%, based on analysis of the growing global economy and rising oil prices.
GBTA COO Michale W. McCormick says that, while most markets do look like they’re in a good position, the downside risks are very much present for the global economy, thanks to the escalation of protectionist policies, the risk of trade wars and the uncertainty brought about by Brexit. He says that their forecast is aimed at giving travel buyers better insight into the global market.
President and CEO of Carlson Wagonlit Travel says that prices are expected to go up in many markets across the world, even as inflation numbers are kept in check. He says that the report studies the data to see the cause and shows what they expect from the key markets across the world, including recommendations.
The paper’s outlook for 2019 stems from an overall increase in air travel across the world, which will then increase demand for rooms. Alongside this is the ever increasing autonomy that travellers get when booking, thanks to the increasing ubiquity of apps from travel managers, allowing for a personalized booking experience, even from a business hotel in Rayong or any corporate hotel.
In the Asia-Pacific region, the report says that prices are likely to go up by around 5.1%, with a large discrepancy across the board; Japan looks to lower its prices by 3.2%, whilst New Zealand looks ready to up its prices by about 11.8%.
Mirroring air pricing, hotel rates across Africa, Europe and the Middle East are fluctuating, with Western Europe looking to rise its numbers by 5.6%, to contrast the 1.9% decline expected from Eastern Europe and the 1.5% drop for the Middle East.
Latin America, meanwhile, are expected to have prices drop by 1.3%, with Argentina, Brazil, Colombia and Venezuela set to drop by 3.5%, 1.9%, 0.7% and 3.4%, respectively, to contrast with Chile, Mexico and Peru, which are all expected to see an increase of 6.4%, 0.6% and 2.1%, respectively.
For North America, hotel prices are expected to go up for both the US and Canada, by 2.7% and 5%, respectively.