Global airfares will remain flat year over year in 2016,
while hotel rates will rise between 3 percent and 5 percent, BCD Travel’s
Advito consultancy projected in its 2016 industry forecast.
Because airlines have increased capacity amid cheaper fuel
prices, fares will be stable in most markets and decrease in some competitive
regions, according to Advito. Economy fares, in particular, should decrease except
in North America and Latin America, where regional demand is strong. Business class
fares, meanwhile, will be stable in North America, Europe and Asia and go down 2
percent to 3 percent for intercontinental travel in the rest of the world.
Advito also cautioned, “The pricing environment could change
very quickly … if there’s a material movement in oil prices.”
Hotel rate increases in North America (4 percent to 6
percent), Latin America (4 percent to 6 percent) and Europe (1 percent to 3
percent) will drive up corporate hotel rates globally, according to Advito. Elsewhere,
corporate hotel rates in Asia either will be flat or decrease as much as 2
percent. They'll stay flat in the Middle East and rise 1 percent to 2 percent
in Africa.
While hotel supply growth has picked up in North America, it
hasn't gone up significantly in major cities other than New York. Hotel meeting
costs, in particular, could rise as most supply growth owes to limited-service
properties with little meeting space. Room rates and food and beverage prices
for meetings in North America have increased 5 percent to 7 percent year over
year in 2015. The growth increased to double-digit percentages in major cities like
San Francisco, Advito reported.
The consultancy also noted that large corporate clients are
likely to see flat or decreased car rental rates in 2016, though smaller
clients could see rates rise between 2 percent and 4 percent.