Trade News
Inbound/ Domestic News
Outbound News
 
Home Data & Analysis Details

DATA & ANALYSIS

Wednesday, 20 September, 2017, 10 : 59 AM [IST]

2018 Global Travel Forecast

Carlson Wagonlit Travel (CWT) and Global Business Travel Association (GBTA) published the 2018 Global Travel Forecast, looking at air, hotel and ground transport prices for next year. According to the report, Asia Pacific is expected to see a 2.8% rise in airfares 2018, with domestic demand increasing, particularly in China and India. Airfares in India are projected to increase by 8.7% in 2018. At the same time, hotel prices are forecast to increase 3.5% in Asia Pacific. Hotel rates in India are expected go up 3.3% in 2018. Meanwhile, ground transport prices in India are expected to increase 2.0% next year. TravelBiz Monitor presents highlights.



2018 Air Projections
Domestic demand is increasing, particularly in China and India, putting additional pricing pressure on key markets in both. Asia Pacific is expected to see a 2.8% rise in airfares 2018, while airfares in India are projected to increase by 8.7% in 2018 (the biggest increase across all key markets in the APAC region).



This new mindset, along with segmentation of airfares, is generating new competition between carriers in Asia Pacific. Consider British Airways, discontinuing free food and beverage on some short-haul flights and instead offering a fee-based option to better compete with low-cost carriers (LCCs). At the same time, travelers who were once unwilling to sacrifice, service for savings are now using LCCs to ensure cost-conscious business travel.

Airlines in the region broadly are partnering with GDSs to display basic economy airfares and grow ancillary fee revenue, also resulting in a move away from manual bookings and toward consistency in fare displays. As many of the economies in Asia strengthen, weaknesses in infrastructure—and airports in particular—are increasingly apparent. As the fastest-growing aviation market in the world, Beijing Capital and Hong Kong Airport have reached terminal capacity while Mumbai and New Delhi are expected to do the same in 2018 and 2021, respectively. Further complicating any solutions is ensuring air space can accommodate added capacity.

2018 Hotel Projections



Across Asia Pacific, hotel prices are likely to rise 3.5% next year. Strong economies means demand is increasing in the APAC region. Hotel rates in India are expected go up 3.3% in 2018.

Intra-continent demand is increasing, particularly for China and India, putting additional pricing pressure on key markets for both. Buyers should anticipate a more challenging discussion with newly merged hotel groups, especially in high-volume markets such as Bangkok, Beijing, Shanghai and Singapore. To prepare, buyers should research options heavily since the market remains highly fragmented and competitive.

2018 Ground Transportation Projections
Continued uncertainty in mining, and a cautious recovery in the oil and gas industry will result in flat rates for 2018 in Asia Pacific. On the other hand, ground transport prices in India are expected to increase 2.0% in 2018.

Business continues to grow in China, with most major car rental and sharing economy suppliers having a presence. Growth in India remains tempered by the required driver that comes with car rentals.



Sharing economy suppliers Didi Chuxing in China, Ola in India, and Grab in Southeast Asia have all achieved economies of scale that make them key competitors vs. car rentals, black car service and taxis.



ADDITIONAL TRAVEL PRICE DATA | ASIA PACIFIC HOTEL RATES




ADDITIONAL TRAVEL PRICE DATA | ASIA PACIFIC GROUND RATES



ADDITIONAL TRAVEL PRICE DATA | ASIA PACIFIC HOTEL RATES



ADDITIONAL TRAVEL PRICE DATA | ASIA PACIFIC AIRFARES



 
Post Your commentsPOST YOUR COMMENT
Comments
* Name :      
* Email :    
  Website :  
     
Receive the best of Travel content in your mailbox.
Enter your e-mail ID for our
Weekly e-Newsletter
   
© Copyright 2015 Saffron Synergies Pvt Ltd