Hotel rates will increase between 1 and 3 percent in 2019, according to BCD Travel's 2019 Industry Forecast, thanks to demand outpacing supply in most markets. Airfares, meanwhile, will rise between 1 and 2 percent in most markets. BCD said lower airfares boosted global air travel demand in 2017. That demand has diminished, though, and dropped farther in some regions, due to slowing economic activity.
Hotel Forecasts
BCD forecasts that global hotel rates will rise between 1 and 3 percent. No region will see rates rise more than 3 percent, but stronger increases will appear in some localized areas; Hong Kong will see rate hikes between 3 and 5 percent and India between 6 and 8 percent, for example.
Airfare Forecasts
Intercontinental business fares will rise 1 percent for each Asia, Europe and North America but will be flat for all other regions. For intercontinental economy class, BCD projects a 1 percent increase for Asia and Europe, a 1 percent decrease for Africa and no change for other regions.
Average business class fares for travel within Latin America will stay flat. Business class fares will rise for travel within each other region; average ticket price increases will range between 1 percent and 3 percent. For economy class, most regions will see a 1 percent or 2 percent increase.