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Global hotel rates will climb while air fares remain flat in 2017

Capacity driven by low fuel costs to offset increase in air demand, keeping ticket prices in check, projects Advito.

CHICAGO – Global air fares should remain flat while global hotel rates are expected to increase around the world by between 0% and 5% in 2017, according to travel consultancy Advito's newly released 2017 Industry Forecast. Despite a modest rise in demand, savings from low fuel prices will sustain airline profitability even with added capacity aboard their fleets.

Advito publishes its annual Industry Forecast to give travel and procurement managers a range of projected prices they can use to benchmark success against key performance indicators and to prepare for supplier negotiations and budgeting.  The forecast includes supply, demand and pricing trends for air, hotel, meetings, transportation and ride-hailing for all major regions in the world.

Global business class fares on average will rise only modestly in 2017, up to 1%, and economy fares will remain flat. However, travel buyers should expect greater variation in fares from region to region. For example, regional business fares will range from flat (in Europe and Latin America) to 3% increases (in Asia and Southwest Pacific). Meanwhile, intercontinental economy class fares should fall slightly everywhere except Europe.  Advito expects little change in regional economy class fares with 2% reductions in Latin America.

Hotel rates will increase in all regions in 2017, led by North America, Advito projects. Rates in the U.S. and Canada are expected to climb by 3% to 5% with slightly smaller increases for hotels in Mexico. The Southwest Pacific and the Middle East also will see a rise in hotel rates due to insufficient supply and strong demand.  In Europe, a modest economic recovery and little new supply will push up rates by up to 2%.

In addition to its pricing forecasts and buying strategy recommendations for air, hotel, meetings and ground transportation for each major region of the world, Advito's 2017 Industry Forecast also includes discussions of:

  • Travel risk and security
  • Hotel direct booking
  • Alternative accommodations
  • Ride hailing trends
  • Artificial intelligence
  • Air fare price restructuring
  • Hotel mergers
  • Hotel dynamic pricing
  • Effect of Brexit on travel

And more

News Editor - TravelDailyNews Media Network | + Posts

Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.

She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.

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