A new study revealed travel prices are expected to rise sharply in 2019 due to a growing global economy and rising oil prices.
According to the fifth-annual Global Travel Forecast from the Global Business Travel Association and Carlson Family Foundation, hotel prices are expected to rise 3.7 percent and flight costs will increase 2.6 percent next year.
In the aviation sector, the introduction of ultra-long-haul flights and a jump in competition from low-cost carriers are impacting the 2019 projections. Airfares are predicted to increase due to rising oil prices, pilot shortages and potential trade wars.
The report broke the air travel projections down by region, including Asia-Pacific expecting a 3.2 percent rise in 2019 pricing, the Europe, Middle East & Africa sector prices rising 4.8 percent, Latin America dropping two percent and North America rising by 1.8 percent.
“While most major markets appear to be trending in the right direction, downside risks remain for the global economy given the rise of protectionist policies, the risk of stoking trade wars and Brexit uncertainty,” GBTA COO Michael W. McCormick said in a statement. “This forecast provides travel buyers with a better understanding of the global market and key price drivers demonstrating the key to building successful travel programs will be watching and reacting to an ever-changing global landscape.”
As for hotels, the expected increase in air travel will fuel demand for rooms, leading to hotel prices rising by 5.1 percent in Asia Pacific, 5.6 percent across Europe, Middle East & Africa and 2.1 percent in North America. Latin America will actually see prices drop 1.3 percent next year.
The study also broke down ground transportation projections, with prices expected to rise only 0.6 percent in North America in 2019, while prices in the rest of the regions will remain flat. Next year, interest in ride-hailing apps is expected to continue rising.