The report, in conjunction with the GBTA Foundation,the education and research arm of the Global Business Travel Association, shows global airfares are expected to rise 3.5% in 2018 and hotel prices are expected to be 3.7% higher.
2018 Air Projections
With an increase of 8.5%, air travel in the UK will take a larger rise than the average across Western Europe.
Across EMEA, air travel is anticipated to continue growing, with prices rising 7.1% across Eastern Europe and 5.5% in Western Europe. However, Middle East and African countries only expect a 3.0% increase as they face ongoing security threats and an oil industry that is still in recovery. Currency fluctuations in Europe may further impact airfares in 2018. 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.
2018 Hotel Projections
The UK will see the largest hotel increases in the EMEA zone at 9.5%
Across EMEA, hotel prices are likely to rise - 6.6% in Eastern Europe, 6.3% in Western Europe, but only 0.6% in the Middle East and Africa. Norway is expected to lead with increases of 14% expected for 2018, while Russian hotel prices will rise 11.9% thanks to increased demand from hosting the 2018 Summer World Cup.
Kurt Ekert, president and CEO, Carlson Wagonlit Travel, commented: "The higher pricing is a reflection of the stronger economy and growing demand," "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."
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