A new forecast predicts an increase in the cost of travel next year, the result of gradually improving economies, lower fuel prices and stronger demand.
In a report released just today, American Express Global Business Travel says a modest gain in flight, accommodation and ground transportation prices is likely in the new year. The “Forecast” – as it’s known in the industry – provides subscribers with over 1,800 pricing predictions on travel products from all over the world.
According to the report, favourable industry conditions in North America and tempered growth in Asia will result in slight pricing gains in the airline industry, as increased demand is offset by similar growth in capacity partially spurred by lower fuel costs. Global hotel performance is also expected to improve moderately in 2016, as limited increases in inventory fail to keep pace with the growing global appetite for travel.
“Broadly speaking, we are expecting modest increases in most airfare and hotel rate categories across Asia Pacific, reflecting a slight uptick in business confidence compared with this time last year.”
David Reimer, Managing Director, American Express Global Business Travel, Asia-Pacific.
The report says we should expect mid-range hotel rates to increase between 1.3 to 3.7 per cent, whilst upper-range hotel rates are slated to increase by 1.6 to 4 per cent.
Likewise, ground transportation rates are expected to increase slightly, up around 1 per cent.
It’s important to note that although the forecasts and projections provided in the report are based on information gathered from internal and external sources that American Express Global Business Travel believes to be reliable, the authors make no guarantee as to the accuracy of the forecasts.
