The airfares and hotel rates are expected to increase in 2019 globally, owing to the ever-rising oil prices and a strong global economy the prices are anticipated to raise the cost of air travels. As per an industry forecast, it is expected that the increase would be 2.6 % for airfares and 3.7% for the hotel fares. However, there does exist a disadvantage risk from the trade war
Few nations which include Germany, India, Chile, New Zealand and Norway airfares are expected to hike by more than seven per cent, as mentioned in the annual business forecast from Carlson Wagonlit Travel (CWT) and the Global Business Travel Association (GBTA) which was released on Tuesday.
The cost of airlines which includes fuel and labour has been elevating, prompting the carriers to try to push the fares up or add fuel surcharges for maintaining margins.
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The CWT/GBTA 2019 prediction indicates a rise in the hotel fares driven by a raised demand for air travel, which would be creating more need for rooms. Room rates are anticipated to increase by more than five per cent in Europe and Asia, by 2.1 per cent in North America and are expected to decrease by 1.3 per cent in Latin America.
Hotel groups which include Accor SA of France and Marriott International Inc of US have reported a strong rising trend in revenue generated per available room both in Europe and Asia this year.
Certain factors pose risk to the global economy in 2019 which includes the global trade war between China and the United States and Britain’s exit from the EU. This might lead to a decline in travel for business and may present a disadvantage for the global economy.