2019 Industry Forecast for Global Corporate Travel Global hotel rates to increase 1-3% and air fares by 1-2% in most markets; strong competition to check increased demand for regional fares
UTRECHT, The Netherlands – September 19, 2018 – Global hotel rates will increase around the world by 1-3% in 2019 and air fares by 1-2% in most markets, according to leading business travel management company BCD Travel’s newly released 2019 Industry Forecast. The increase in hotel rates is largely due to demand growth slightly outpacing supply in most markets. Air fares are expected to remain flat in Africa, decrease 2% in Latin America and increase by 1% or 2% in all other regions.
The 2019 Industry Forecast provides travel and procurement managers with projected prices in preparation for supplier negotiations and budgeting. The forecast, published in prior years by Advito, the consulting arm of BCD Travel, includes supply, demand, and pricing trends for air, hotel, meetings, and ground transportation for all major regions of the world.
Globally, average ticket prices for regional and intercontinental travel in both business and economy class are expected to rise by 1% in 2019. Regionally, average ticket prices will vary between -2 and +3%, with the largest decreases seen in economy fares in Latin America and the largest increases in business class fares in the Southwest Pacific region. In Latin America, increased competition will be responsible for downward pricing pressure while in the Southwest Pacific, flat capacity and increasing demand will lift regional air fares.
Hotel rates are expected to increase by 1-3% worldwide, with little variation by region. Much wider ranges can be seen on a country level, such as in India, where a 6% to 8% rate increase is forecast. Inversely, lower rates are most likely in African markets, particularly in Ethiopia and Morocco. In the U.S., hotel occupancy is generally higher year-over-year, especially in the major cities, thanks to the continued strength of the U.S. economy. Travelers may experience severe availability issues in some locations.
In addition to its pricing forecasts and buying strategy recommendations for air, hotel, meetings and ground transportation for each major region of the world, BCD Travel’s 2019 Industry Forecast also includes discussions of:
- Travel risk and security
- Hotel chainwide agreements
- Alternative accommodations
- Global and regional macroeconomic trends
- Hotel mergers and meetings
- Hotel dynamic pricing
- And more
Click here for the BCD Travel 2019 Industry Forecast
About BCD Travel
BCD Travel creates connections that move people and ideas forward. Through open technology and trusted human expertise, we help companies and people navigate change, simplify complexity and make confident decisions about how and when they travel. Our intuitive digital experiences for every stakeholder power journeys that fuel success and drive progress. With 15,000+ dedicated team members serving clients in 170+ countries, BCD is shaping a more sustainable future for business travel. Industry-leading meetings and events management and a global consultancy complete our suite of solutions and services. In 2024, BCD achieved US$22.9 billion in sales. For more information, visit www.bcdtravel.com.