By Irene Gaitirira
Published July 29, 2018
Travel and accommodation prices are expected to rise around the world in 2019.
A report by Global Business Travel Association (GBTA) that is touted as being the voice of the global business travel industry, not only says that hotels will see a 3.7% and flights a 2.6% increase but also shows the trends and developments that will shape the business travel industry.
Global Travel Forecast, published published by GBTA and Carlson Wagonlit Travel with the support of Carlson Family Foundation, says the predicted increase shall be driven by a growing global economy and rising oil prices.
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“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,” says Michael W McCormick, Executive Director and Chief Operating Officer of GBTA. “This forecast provides travel buyers with a better understanding of the global market and key price drivers demonstrating the key to building successful travel programmes will be watching and reacting to an ever-changing global landscape.”
“Prices are expected to spike in many global markets even as inflation remains subdued,” says Kurt Ekert, President and Chief Executive Officer of 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.”
Ekert says ‘the future of corporate travel can be summed up as accelerated personalization – with mobile technology, Artificial intelligence (AI), machine learning and predictive analytics all playing their part.
“Success,” Ekert says, “is tied to technology, with sophisticated data-crunching at the very heart of it.”
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While Asia Pacific is expected to see a 3.2% rise in 2019 pricing, air travel is anticipated to continue growing in Western Europe, with prices rising 4.8%. Eastern Europe and the Middle East and African countries, on the other hand, are expected to see a decline of 2.3% and 2%, respectively.
Prices across Latin America, too, are expected to drop 2% in 2019 save for Chile that will experience a rise of 7.5% as México and Colombia experience slight increases at 0.1% and 1.2% respectively.
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 personalize the guest experience. The increase of mobile penetration, on the other hand, is forcing travel managers to offer their travellers apps, which also serve to accommodate greater in-policy booking autonomy.
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Further mergers – and upscale hotels competing with midscale ones due in part to a growing appetite for boutique accommodation among younger travelers – will also be on the agenda.
Though ground transportation pricing is expected to rise only marginally, i.e 0.6%, globally, 2019 is predicted to see a growing preference among travellers for ride-hailing apps while interest in high-speed trains is fading partly due to high network costs and low-tech distribution systems.
On-demand, shared, electric and connected cars will all become more popular. Connected car technology has the potential to change the entire automotive industry.
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