Global airfares, hotel rates and car rental rates will
increase modestly this year, according to American Express Global Business
Travel's 2018 Business Travel Forecast. Global air travel, hotel and car rental demand will rise with improving global economic conditions and growing business
confidence.
2018 Airfare Rate Growth Forecast
Flights from North America
Short-Haul (economy): 0.8% to 2.2%
Long-Haul (business): 3% to 5.1%
Latin America
Short-Haul: 1.3% to 2.3%
Long-Haul: 1.7% to 2.9%
Europe
Short-Haul: 0.3% to 2%
Long-Haul: 1.2% to 3%
Middle East & Africa
Short-Haul: -1% to 2%
Long-Haul: 2% to 5%
Asia/Pacific
Domestic: 0.5% to 1.4%
International: 0% to 1.2%
Air Travel
Airfares for each global region, but overcapacity
on some routes, aggressive expansion by low-cost carriers and relatively low
oil prices will moderate those increases.
Other key global trends: Airlines will continue to drive revenue through
the expanded use of ancillary fees. Full-service carriers will increase their use of
unbundled fares and add premium seating options to better compete with low-cost
carriers. Stronger corporate demand on international
routes will result in moderate gains on premium fares. China and India will continue to lead global
demand for business travel. And airlines in the U.S. will reprioritize domestic
operations because of weakening demand and overcapacity on some international
routes.
Lodging
2018 Hotel Rate Growth Forecast
North America: 2.7%
Latin America: 3%
EMEA: 2%
Asia/Pacific: 2.5%Despite robust investment in new supply, hotel rates will
increase moderately because of strengthening regional economies.
Other key global trends: Hotels will continue to use ancillary fees, stricter
cancellation policies and direct bookings to increase profitability. Hotel supply also will continue to grow but at a
moderate pace compared with last year.
Cities with Largest 2018 Hotel Rate Growth Forecasts
- Toronto: 7.5%
- Sydney: 6.5%
- Barcelona: 5.5%
- Moscow: 4%
- San Francisco: 3.5%
Car Rental
2018 Car Rental Rate Growth Forecast
Americas: 1%
EMEA: 0.25%Rental car rates will see increases for the first time in
years, owing rising operating costs and tighter fleet management, as fewer cars
sitting idle allows car rental companies to raise rates.
Other key global trends: Competition between car rental companies will
remain fierce. Car rental companies will use ancillary services
and fees to drive profitability. And in the U.S., competition from on-demand
ride-hailing services like Uber and Lyft will push car rental companies to improve
the traveler experience.