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Travel prices are expected to rise sharply in 2019, with hotels going up 3.7%, and flights 2.6%, driven by a growing global economy and rising oil prices according to the fifth annual Global Travel Forecast, published today by the Global Business Travel Association and Carlson Wagonlit Travel. “Prices are expected to spike in many global markets even as inflation remains subdued,” said Kurt Ekert, President and CEO, Carlson Wagonlit Travel. “The report explores the causes and includes an overview of what we expect to see in key markets worldwide. It also gives specific recommendations, giving travel managers ammunition for their upcoming negotiations.”

The aviation sector will be shaped by the introduction of ultra-long-haul flights and an increasing competition from the low-cost carriers, which are not only multiplying but also fighting for long-haul routes – and by the airlines’ push towards NDC. Airfares are likely to become more expensive due to rising in oil prices, the competitive pressure from the shortage of pilots, potential trade wars, and increasing fare segmentation to improve yield.https://www.travelcounsellors.com.au/au/leisure

Asia Pacific expects to see a 3.2% rise in 2019 pricing. Chinese demand remains high and by 2020 the country is expected to become the world’s biggest air travel market. In 2019 the country’s flights are seen going up 3.9%. But China will not be alone. The vast majority of countries in the region will see price rises, especially in markets like New Zealand (7.5%) and India (7.3%). The latter is expected to be the world’s largest aviation market by 2025, with airports operating beyond capacity. The only exception in this booming region is Japan. Prices there will likely drop 3.9% due to the country’s added capacity in preparation for the Olympic Games in 2020. The hotel outlook for 2019 is driven by the overall increase in air travel, which will fuel demand for rooms. Technology will also play an important part. Hotels are introducing new developments to personalise the guest experience.

Further mergers – and upscale hotels competing with midscale ones due in part to a growing appetite for boutique accommodation among younger travellers – will also be on the agenda.

In Asia Pacific, hotel prices are likely to rise 5.1% –with a large discrepancy as Japanese prices are expected to fall 3.2%, but New Zealand is set to rise a whopping 11.8%. In Australia, 2019 and 2020 are expected to bring the largest number of new rooms becoming available, with an increase of 3.4% of total supply each year. In Indonesia, Swiss-Belhotel International is embarking on an expansion of its budget brand, Zest Hotels, with plans to triple its portfolio of properties within three years. Singapore is embracing technology and smart hotels are on the rise. In Thailand, optimism is running especially high after a period of political tumult. Mirroring air prices, hotel rates across Europe, Middle East & Africa are expected to rise in Western Europe 5.6%, while declining 1.9% in Eastern Europe and 1.5% in the Middle East & Africa. Again Norway will lead with a rise of 11.8%, followed by Spain (8.5%) –expected to replace the US as the world’s second most popular destination, Finland (7.1%) and France and Germany (6.8%).

Next year, ground transportation pricing is expected to rise only 0.6% globally. However, by the fourth quarter of 2019, we will see a concerted effort by rental companies to raise prices.

Mobile mobility will rise. On-demand, shared, electric and connected cars will all become more popular. Connected car technology has the potential to change the entire automotive industry. In Asia Pacific, markets like New Zealand (4%), India (2.7%) and Australia (2.4%) will see increases. In China, giant Didi Chuxing is making big bets on autonomous driving. This year, Uber has sold its Southeast Asian business to Singapore-based Grab and Indonesian Go-Jek is expanding to Vietnam, Thailand, Philippines and Singapore.

Edited by Ian McIntosh