Africa May Avoid Global Travel Price Hike
Event Africa Contributor 27/07/2018 International News
Hotel and flight prices are expected to increase sharply in 2019, with the Middle East and Africa region a notable exception, according to the fifth annual Global Travel Forecast from GBTA and Carlson Wagonlit Travel.
Rising oil prices, competitive pressure from the shortage of pilots, the potential of trade wars, and increasing segmentation are likely to cause an increase in airfares. The forecast expects a 3,2% rise in pricing for the Asia-Pacific market, with the only exception being Japan. Prices in Western Europe may increase by as much as 4,8%, while North America may see a marginal rise of 1,8%.
Eastern Europe is expected to see a decline of 2,3% while Latin America, the Middle East, and Africa will see prices decline by 2%.
The outlook for hotel rates follows a similar trend. Hotel prices in the Asia-Pacific region are likely to increase by 5,1%, with Japan again an exception with prices expected to drop by 3,2%. In Western Europe, rates may rise by 5,6%, and North America by 2,1%.
Decreases in hotel rates are forecast for Latin America (1,3%), Eastern Europe (1,9%) and the Middle East and Africa (1,5%)
Ground transportation prices are expected to increase globally by 0,6%, with a few notable outliers. New Zealand and India should see increases of 4% and 2,7% respectively. While in Europe, France, Germany, Italy, and Spain will see increases above 4%, and in the UK, 3%.
North America will increase by about 3,6%, but Latin America will again show price decreases, with prices in Argentina expected to decrease by 9,7%, and Brazil by 5,4%.
The forecast projects that there will be a growing increase in ride-hailing apps in 2019, with interest in high-speed rains dropping as a result of network costs and low-tech distribution systems. On-demand, shared, electric, and connected car technology should all become more popular as well.