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Travel to Get More Expensive in 2019, Flight and Hotel Prices to Rise

By 2020, China is predicted to become the world's biggest air travel market.

AFP Relaxnews

Updated:August 1, 2018, 5:12 PM IST
Travel to Get More Expensive in 2019, Flight and Hotel Prices to Rise
Representative image: AFP

Travel is expected to get more expensive in 2019 with the cost of flights and hotels both predicted to rise, according to the fifth annual Global Travel Forecast, published by GBTA and CWT with the support of the Carlson Family Foundation.

The proliferation of low-cost long-haul flights brings more opportunities to visit far-flung destinations without breaking the bank, and such carriers are predicted to multiply in 2019, while continuing to fight for long-haul routes. Ultra-long-haul flights will be another air travel trend for 2019. But factors such as rising oil prices and a lack of pilots are expected to drive up airfares next year in almost all global regions.

In Western Europe, for example, the cost of air travel is expected to rise 4.8%. The increase could be particularly pronounced in Norway (11.5%), Germany (7.3%), France (6.9%) and Spain (6.7%). However, Eastern Europe and the Middle East & African countries are likely to see a decline of 2.3% and 2% respectively.

Higher prices and strong demand in China

In the Asia Pacific region, flight prices are expected to rise 3.2%, with Chinese demand remaining high. Indeed, by 2020, China is predicted to become the world's biggest air travel market. In 2019, the country's flights are expected to go up by 3.9%. Similarly, air travel is likely to be more costly in India, with prices expected to rise 7.3%, while fares in New Zealand could increase by 7.5%.

Price rises are likely to be more modest across North America, up 1.8%. In Latin America, Chile is the only country expected to experience a significant rise (7.5%) while prices across the region are expected to drop 2% overall.

When it comes to hotels, the report predicts price increases driven by the growing role of technology in personalizing guest experiences and by upward demand fueled by air travel growth. Hotel rates in France and Germany are expected to rise 6.8%. Norway is once again likely to see Europe's biggest price rises, up 11.8%.

Across the Asia Pacific region, prices are expected to rise 5.1% (with a whopping 11.8% likely for New Zealand), with the exception of Japan, where a fall of 3.2% is predicted. Hotel prices are estimated to rise 5% in Canada and 2.7% in the USA.

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| Edited by: Manila Venugopal
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