BCD Travel’s Advito consultancy has lowered its 2015 airfare
projections in several regions, owing to growing capacity and lower oil costs,
according to a forecast update issued Tuesday.
In North America, Advito projects regional economy fares will
decline 3 percent year over year for the full year 2015. It expects economy
fares on intercontinental flights in the region to dip 2 percent year over year
and business fares to remain flat. It previously had forecast moderate fare
increases but believes “growing airline profits make it more difficult for them
to justify increased published fares.”
Advito lowered both airfare and hotel-rate projections for
Europe, where demand “remains weak.” It projects that 2015 regional European
economy airfare will decline 1 percent year over year and business-class fares
will increase 1 percent. Advito also lowered average hotel-rate projections for
France, where it now expects them to rise just 1 percent to 4 percent; Germany,
where Advito expects them to remain flat or rise only 3 percent; and the United
Kingdom, where it now expects hotel rates to rise 3 percent to 5 percent.
In Australia, however, demand has been stronger
than expected, prompting Advito to bump up its hotel-rate forecast to a
year-over-year increase of between 2 percent and 4 percent. It lowered its
airfare forecasts for the Southwest Pacific region, however, projecting that
regional economy fares and intercontinental business fares will remain flat
year over year and intercontinental economy fares will decline 2 percent.