Airfares, hotel rates forecast to increase in 2020
Earlier this year we saw a spike in airfares after Jet Airways ceased its operations in April.
Kolkata: Be prepared to shell out more from your wallet, when you are flying and footing your hotel bills.
Unlike the global travel industry scenario, India's strong economic growth is fueling a greater demand for business travel and driving up prices. Airfares are predicted to increase 5 per cent (in local currency terms; 0 per cent in dollar terms), while hotel rates and ground transport prices are expected to climb 6.8 per cent (1.8 per cent in dollar terms) and 4.5 per cent (- 0.5 per cent in dollar terms), respectively. After posting sharp rises in 2019, prices in the global travel industry are likely to slow in 2020, with flights rising a modest 1.2 per cent, hotels rising only 1.3 per cent, and rental car rates up 1 per cent (in dollar terms).
Atleast that's what the sixth annual Global Travel Forecast, published by CWT, a B2B for Employees (B2B4E) travel management platform and GBTA, Washington-headquartered Global Business Travel Association, indicated.
"Earlier this year we saw a spike in airfares after Jet Airways ceased its operations in April, so we're already at a high base in 2019. With other airlines adding capacity to fill the vacuum, fares have begun to normalize and we expect that to continue next year. However, if the rupee weakens against the dollar, Indian carriers could be faced with bigger fuel bills and we might see that being passed on to travelers," said Vishal Sinha, CEO, India, CWT.
He said, "Hotel rates are also expected to rise, as the demand for rooms outpaces supply, especially in secondary cities like Chandigarh, Jaipur and Ahmedabad. At the same time, the commercialization of mid-tier properties are also pushing prices upwards."
The 2020 Global Travel Forecast uses data generated by CWT Solutions, to give an early look at the trends and developments that will shape the business travel industry in the year ahead.
On the Asia Pacific region, as a whole, the report said that Asia's expansion has slowed down due to worsening US-China relations, tighter global financial conditions, and natural disasters.
But the region remains the most dynamic, with steady GDP growth, benign inflation, and a sense of optimism.