According to a new research by CWT and Global Business Travel Association (GBTA), prices in the global travel industry are likely to slow in 2020, with flights rising a modest 1.2 per cent, hotels rising only 1.3 per cent, and rental car rates up to 1 per cent (in US$ terms).
Expressing his views on this, Kurt Ekert, president and chief executive officer, CWT, said, “The risks and ambiguity have increased over the past few months – not least the threat of escalating trade wars, the impact of Brexit, possible oil supply shocks, and the growing likelihood of recession. ”
The study also shows that India’s strong economic growth is boosting demand for business travel and driving up prices. As per the forecast, airlines will mark a 5 per cent increase, while hotel rates and ground transport prices are expected to climb to 6.8 per cent and 4.5 per cent respectively.
According to Vishal Sinha, chief executive officer, CWT, India said “With other airlines adding capacity to fill the vacuum created by the ceasing of Jet Airways, fares have now begun to normalise and we should expect that to continue next year. However, if the rupee weakens against the dollar, Indian carriers could be faced with bigger fuel bills and we might see that being passed on to travelers.”
He added, “Hotel rates are also expected to rise, as the demand for rooms outpaces supply, especially in secondary cities like Chandigarh, Jaipur and Ahmedabad. At the same time, the commercialisation of mid-tier properties, by players like Oyo are also pushing prices upwards.”
On a wider-scale, Asia’s hospitality industry will see a boom, as hotel investment volumes are predicted to grow 15 per cent year-on-year.