Advito Predictive Analytics has released its Air and Hotel Price Index for Q2-2024, which forecasts that air ticket prices out of Africa will slightly increase while global prices are set to decrease.
It predicts that the cost of intercontinental air travel out of Africa will increase for economy passengers by 1% and business-class passengers by 3%.
Since the beginning of this year, air prices out of Africa have been rising, showing a slow upward trend for African travellers. This is in contrast to the global industry, according to Advito, which said intercontinental prices were decreasing, attributing this to “a strong recovery of airline capacity, a sluggish economy for some key countries in Asia and Europe and the impact of high travel costs (hotel, car rental) on passenger demand”.
The index also highlighted that hotel rates worldwide would increase during the coming quarter. The company predicts that an increase will be driven by inflation, which affects the cost of goods and services, the increase in leisure travel, and rising hotel internal costs. Hotel rates are predicted to increase by 6% year-on-year in Africa while European rates will increase by 9% year-on-year. The most significant increase is in Latin America, which will see a 13% price hike compared with last year. More detailed regional analyses of the aviation and hotel markets can be accessed on request through Advito.
The company uses data from airfares available in GDS on a weighted average based on travel booking windows. Hotel rates are analysed by comparing the best available rates on the GDS and OTAs.
