By Carmen Stinson on Oct 11, 2018
2 min read
Different analysts expect that business travels are likely to see a sharp rise next year, with hotel rates and flights spiking 3.7% and 2.6% respectively. This spike has a reason —the current state of global economics and the rise in the price of crude oil.
The rise of airline tickets
Airline ticket fares are very likely to see a price hike because of the increase in fuel prices, pilot shortages and potential trade conflicts involving tariffs and the likes. Also, airlines are likely to increase fare segmentation to improve yield costs.
The aviation sector is likely to see changes in its dynamics, because of ultra-long-haul-flights and low-cost airline carriers, this one being on the rise, low-cost airlines are multiplying everywhere and fighting for long-haul routes.
IATA’s New Distribution Capability
Another factor is the airlines’ interest in IATA’s New Distribution Capability (NDC). Which according to IATA’s website: “It enables the travel industry to transform the way air products retail to corporations, leisure and business travelers, by addressing the industry’s current distribution limitations: product differentiation, and time-to-market, access to full and air rich content and finally, transparent shopping experience.”
That means that many airlines will now have an opportunity at the big table with bigger airlines to compete transparently in this razor edge market.
The price hike in hotels
If airline ticket fares are on the rise, hotels will also see a price hike, and the demand for hotel accommodations will increase accordingly. As hotels try to improve customer experience using technology to make the experience for guests more tailored to their needs —which translates into investment into tech markets using app development for greater booking autonomy and demands by the customer.
Ride-hailing apps on the rise
Next year will also see a growing preference among travelers for ride-hailing apps. It expects that by 2019 mobile mobility will increase, so cars with on-demanded, shared and connected will be likely to become ever more popular. Combined car tech is very likely to shape and change the automotive industry for bigger and better things.
Technology and connectivity are intertwined and expected to work in synchronization and unison, to provide users the capacity to stay in touch worldwide, do business, move packages, and get from point A to point B as quickly and reliably as possible.
This sort of demand and understanding of the aspects of supply and demand charts explain why corporate travel prices are likely to increase next year.
Learn more about Corporate Travel Safety Tips To Know here.
By: Carmen Stinson
Director, Global Corporate Travel