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Stat: Air and Hotel Rates Forecast to Rise in 2015December 16, 2014
Air fares won't drop in line with falling oil prices in some regions, according to an analysis released by travel consultancy Advito. Growing demand should spark fare increases in North America and Europe, Advito predicts in an update to their annual Industry Forecast. Meanwhile, competition among low-cost carriers (LCCs) is steadily driving down fares in Asia, Africa and the Middle East.
Other key findings from Advito:
The global economy is slowly improving, but a sharp change in the fortunes of key emerging markets, like China and Russia, could disrupt the broadly stable global outlook.
Economic recovery is pushing hotel rates higher in North America, Africa and Europe; but rate outlooks are lower in the Middle East, due to the growing number of suppliers there; and in the Southwest Pacific, where demand just hasn't met expectations.
Hotels are increasingly undercutting negotiated rates by offering business travelers the lower pre-paid rates normally associated with leisure stays.