In 2019 global airfares will remain constant while hotel rates will increase by up to 3% in certain regions, according to BCD Travel’s 2019 Industry Forecast.
The report details supply, demand and pricing trends for air, hotel, meetings and ground transportation for the world’s major regions based on an analysis of aggregated transaction data for BCD clients worldwide.
Airfares
Globally, the report predicts average ticket prices (ATP) for regional and intercontinental travel in both business and economy class to rise by 1% in 2019.
“Intercontinental business fares will increase by 1% in Asia, Europe and North America, but they will be flat in all other regions. Regional business fares will be higher in all markets except Latin America, with ATP increases ranging between 1% and 3%.”
Most intercontinental economy fares will stay flat, with BCD only predicting an increase in Asia and Europe, while they will decrease for flights from Africa. The prospects for economy fares for regional travel are more mixed. “They will increase by 1% or 2% in most regions; and will be flat within Africa, while growing airline competition is expected to push fares down by 2% in Latin America.”
Hotel rates
BCD predicts that global hotel rates will increase by 1% to 3% in 2019, as demand remains just ahead of supply in most markets.
“At this level of aggregation, we expect rates to rise by either 0% to 2% or by 1% to 3%. But some countries within these regions will still see much stronger increases, such as India, where we are forecasting a 6% to 8% rate increase.” The report adds that lower rates are most likely in African markets, particularly in Ethiopia and Morocco.
