Airfares & hotels only getting more expensive: research
![Below view of group of people leaving the plane by moving down the staircase. Focus is on man in the foreground.](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
A new report from Carlson Wagonlit Travel (CWT) hasn’t exactly painted the prettiest picture for the future of local airfare and hotel prices, with the rest of the world looking at increased prices as well.
The fourth annual 2018 Global Travel Forecast, produced in partnership with the GBTA Foundation, the research arm of the Global Business Travel Association, shows that travel prices are expected to rise sharply in the coming year, reaching nearly four per cent increases in some sectors.
Overall, global airfares are expected to rise 3.5 per cent in 2018, hotel prices are expected to be 3.7 per cent higher, and ground transportation such as taxis, trains and buses are expected to rise only 0.6 per cent, but it’s an increase nonetheless.
“The higher pricing is a reflection of the stronger economy and growing demand,” said Kurt Ekert, President and CEO, Carlson Wagonlit Travel.
“The global numbers from this forecast should be considered strong leading indicators of what 2018 will mean for global businesses, as we anticipate higher spending.”
“Geopolitical risks, uncertainties in emerging markets and ever-changing political environments in Europe and the United States mean today’s travel professionals have more than ever to take into account when building their travel programs,” said Jeanne Liu, GBTA Foundation vice president of research.
“The most successful programs will have to keep a watchful eye on both geopolitical risks and a rapidly-changing supplier landscape as they reevaluate strategy often and adapt as necessary.”
So let’s get into it a bit more, shall we?
2018 in the aviation sector
The uptick in global airfares comes as crude oil prices rise, in spite of airlines adding an expected six per cent capacity in 2018.
Complicating airline pricing is increased segmentation of basic fares among large carriers. Travellers now have the option of choosing a basic economy, restricted fare VS various upgraded fares, with specific service options and pricing varying by airline.
- Asia Pacific expects to see a 2.8 per cent rise in 2018 pricing with domestic demand increasing, particularly in China and India. However, as Asian economies strengthen, weaknesses in infrastructure – especially airports – are becoming apparent.
- Across Europe, air travel is anticipated to continue growing, with prices rising 7.1 per cent across Eastern Europe and 5.5 per cent in Western Europe. Given limited competition and the upcoming summer 2018 World Cup in Russia, Eastern Europe may again have the most significant price increases in the region.
- Middle East and African countries only expect a three per cent increase as they face ongoing security threats and an oil industry that is still in recovery.
- Across Latin America and the Caribbean, prices are expected to change little in 2018 – up only 0.3 per cent. Airlines have cautiously added capacity back into the market.
- Broader analysis of South America shows a 20.0 per cent increase in scheduled flights by the end of 2019. Low cost carriers are well positioned for this area given the low penetration in the region. And, new, more efficient aircraft coming into in operation will lower operating costs in 2018.
- North America will see prices rise by a modest 2.3 per cent. With the potential for stronger US travel restrictions, flights to the US have already been reduced accordingly.
- Canadian airlines are expected to aggressively compete given new market entrants and capacity growth of about 11 per cent in 2017 and 12 per cent in 2018.
2018 in the hotel sector
Globally, the 3.7 per cent average increase in hotel prices doesn’t actually give a great indication of what’s going on at a regional level.
Europe is expected to show strong increases, while other regions are barely keeping up with inflation. Additionally, prices are expected to fall in Latin America and the Caribbean.
There’s a global trend towards “smarter” hotels, with hotels investing in beacon technologies, messaging, in-room entertainment and more. Increasingly tech-savvy guests will use apps to check in and out, unlock their hotel room door, operate the television remotely and control room temperature.
- Across Asia Pacific, hotel prices are likely to rise 3.5 per cent – with a large discrepancy as Japanese prices are expected to fall 4.1 per cent, but New Zealand is set to rise a full 9.8 per cent. Strong economies means demand is increasing in the APAC region.
- Across EMEA, hotel prices are likely to rise – 6.6 per cent in Eastern Europe, 6.3 per cent in Western Europe, but only 0.6 per cent in the Middle East and Africa. Norway is expected to lead with increases of 14.0 per cent expected for 2018, while Russian hotel prices will rise 11.9 per cent thanks to increased demand from hosting the 2018 Summer World Cup.
- Within Latin America, hotel prices are expected to fall 1.2 per cent, with steep declines in Brazil (down 8.7 per cent) and Argentina (down 2.7 per cent). However, Peru and Chile are expected to see 7.7 per cent and 5.5 per cent increases, respectively. Capacity is being added throughout the region with an estimated 449,500 new hotel rooms being constructed between late 2016 and 2025.
- North America hotel demand has levelled off since mid-summer 2016 – but supply is expected to continue growing steadily through 2018. US hotel growth is expected to be concentrated along with the West Coast and in Washington D.C.
2018 in the ground transport sector
The price of ground transportation – that’s taxis, Ubers, those kinds of guys – is expected to rise only 0.6 per cent in 2018 (but 5.5 per cent by 2022).
Sharing economy players such as Uber and Lyft are expected to continue double-digit growth upwards of 10 per cent in 2018, before settling down into single-digit growth for 2019. Their growth is under threat by costly regulation and government bans.
Email the Travel Weekly team at traveldesk@travelweekly.com.au
-
Latest comments
Latest News
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Low-cost Indian carrier SpiceJet continues to burn cash
It’s not just low-cost Australian carriers that are facing hardship. SpiceJet, India’s version of Bonza, recently announced a 72 per cent reduction in its net loss versus last year. But, despite this improvement, the airline has posted losses for six straight years. But it has secured board approval to raise up to INR 30 billion […]
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
SAKA Museum recognised in TIME magazine’s World’s Greatest Places 2024
AYANA Resort Bali’s newly-opened cultural and events centre, SAKA Museum has been recognised in TIME magazine’s World’s Greatest Places list for 2024. Part of AYANA Bali’s resort destination, the museum integrates Bali’s rich history with state-of-the-art facilities, making it the centrepiece for the island’s spiritual and cultural heritage. TIME magazine’s inclusion of SAKA Museum in […]
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Journey Beyond launches first brand-led campaign during Paris Olympics
Journey Beyond is pushing the boundaries. On The Ghan, you can't even see them!
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Ascott Australia partners with Hotels for Trees
Hoteliers can take a 'Lyf' out of this book and improve their green credentials.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Victoria’s TAC Top Tourism Town Award winners for 2024
Keep looking in our own backyard. There are plenty of places to go.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Uniworld partners with Camilla Franks with Egyptian-inspired collection
We are in de-Nile about making puns combining Crocs and leopard prints, given this luxe partnership.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Aussies at Paris Olympics anxious about travel risks, with incidents already recorded
Fortunately one of our biggest gold medal hopes still held onto his pedals.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Banyan Tree Seaview Villas elevates Laguna Lang Co
If you've ever played golf in the tropics, start early. LIke way early. It's hot! Damn hot.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Silversea taps Barbara Biffi as senior vice president for global sales
Ultra-luxury and expedition cruise travel brand, Silverseas, has announced Barbara Biffi as its new senior vice president of global sales. Biffi joined the company in 2007, holding numerous positions and gaining a deep understanding of the brand, the preferences of its guests and its strategic goals, the company said. An Italian national with a wealth […]
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Wendy Wu unveils new Japan travel brochure and itineraries
Get outta town! Off-beat Japan will be a lot less congested we figure than the usual tourist hotspots.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
UK and Europe event organisers look to venues with sustainability integrity, ICC Sydney survey finds
Here in Sydney, you can even eat the table centrepieces. Although we advise they be cooked first.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Renos Rologas new general manager ANZ for FCM Travel
Two decades in the travel game! Let's hope Renos is in for the long haul at FCM.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Untamed Escapes to offer Cultural Day Tour from Port Lincoln in partnership with Maba Idi
International visitors travel thousands of kilometres for this experience. Time to share.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Luxe Finish Line Penthouses offer the best vantage point for the finish of the Sydney-Hobart
Long have we been following the yachts leavings Sydney Harbour and one day, we will see the finish, from this place!
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
In a busy world, proximity to nature is the new luxury
Forget Raffles, treat your nearest and dearest to a stay at the local campsite. They'll be super close to nature.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Circular Quay welcomes new Korean dining experience to Sydney Place
We once took Korean-American chef David Chang around Koreatown, Eastwood. Not happy about driving rain, loved the food.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
MSC Cruises unveils a new outdoor kid-friendly attraction on World America
Drop your kid down the jaws of a shark and they come out 11 decks below. Sounds good to me.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Amadeus welcomes FCM Travel as new reseller partner of Cytric Easy
Cytric Easy, the travel management tool embedded in Microsoft Teams, is to be integrated into FCM Travel portfolio. Amadeus and FCM Travel have extended their Cytric distribution agreement to include Cytric Easy. With this new agreement, global travel management company FCM Travel, becomes a reseller of the innovative travel management collaboration solution embedded into Microsoft […]
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Australian travellers abandon peer-to-peer stays and gravitate back to big hotels, survey finds
Doom scrolling Airbnb for the best-possible stay options two days out from departure was wearing us down, apparently.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Quark Expeditions launches the Ultimate Summer in the Arctic sweepstakes for travel advisors
Summer in the Arctic still means it's freezing. But hopefully a winning sweepstakes tickets will warm your cockles.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
‘I bet it smells weird’ – Internet divided over floating restaurant in China
I you are still feeling peckish at the end of your meal, their fish tank is full. But can you eat koi?
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
‘Turn up in the Northern Territory this Spring’ campaign deals
Agents and airlines get all hot and sweaty over these enticing deals. Or did someone just turn the air-conditioning up?
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
‘Like nothing on earth’: Saudi Arabia’s new Treyam resort set in a Star Wars-style landscape
As long as Jar Jar Binks is not there, we would like a seat at the Mos Eisley Cantina please.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Raffles Hotels and Resorts is set to open in Tokyo in 2028
Time to get your vision boards at the ready! Raffles is landing in Tokyo!
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
‘A true honour’ – Andrew Stark wins Flight Centre Director’s Award for the second time
Congratulations Andrew! If you're a fan of British reality TV you might notice a familiar face.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Club Med debuts travel agent portal 2.0 with bonus prize for tops sales
See those people by the pool. That could be you. Start selling through the portal people!
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Envoyage announces 2024 Australian Icons and rewards event in the Maldives
We were going to edit our name into the list but we chickened out.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
HIF Global signs collaboration agreement with Airbus on eFuels
We know it's a good thing but can a jet fuel geek out there send in a diagram explaining this please.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Crystal announces release dates for 2026 itineraries
If you have started collecting 2026 itineraries then here is another one for you.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Cairns Airport unveils display of support for FNQ youth
If you were craving some winter sun now you have a cultural reason for booking a flight to Cairns.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Viking announces six new cruise itineraries
Now's the time to start learning Putonghua, Nihongo and Lhasa. Or maybe even know where these are spoken.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Join Qatar Airways, Celebrity Cruises & Klook – Showcase Your Brand at Click Frenzy Travel August 2024!
Clicking calmly will also be welcome when it comes to this particular deal. Click calmly here to find out more.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
InsideAsia Tours launches new incentive that doubles agent commission
Double commission! We like the sound of that. Hope their system doesn't crash as a result.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Push to revive Parramatta’s iconic Roxy Theatre into entertainment destination
Long have we wished for this iconic heritage cinema to be revived as a tourist destination. Still waiting.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Qatar Airways signs an expansion to Boeing 777-9 aircraft order
Known as a quiet rural town in England, the entire global aviation industry now has its eyes on Farnborough.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Flight Centre shares down following revised profit guidance
The stock market moves fast. What will the rest of the week hold for Flight Centre?
in USA ski resorts are getting cheaper & cheaper due to a massive price war. It’s now cheaper to ski in USA than ANYWHERE else & the AUD4 at 79 cents helps as well, but the main factor is competition. Interestingly, it’s cheaper booking a US ski holiday from Australia than from USA.
Recent example, on snow in Copper Mt Colorado, one of the worlds best resorts, where you can get a 2 bedroom, 2 bathroom 4 star condo that can sleep 8 people for less than AUD$300/night for all of January & February 2018. With this type of accommodation, you can save up to 96.5% off lift tickets.
A one day adult pass with lift line priority(to jump the Q’s) purchased at the ticket window at the resort, is USD$180/adult & USD$115/child. Booked with accommodation from Australia, lifts are only USD$25/adult/day when 10 days lift purchased, with up to 4 kids totally free. If you buy 14 days, then even cheaper at USD$22.50/adult/day. Incredible deal.
Copper Mt was recently voted the best value resort in whole of North America & also the best family resort in North America, in a Skiing magazine poll of over 80,000 readers.
Why would you ski anywhere else ?