Corporate Travel Prices To Increase In 2019
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.
It’s likely that Airfares will be more expensive due to a rise in fuel costs together with the competitive strain from the lack of pilots, potential commerce wars and increasing of fare categorization to improve performance. The airlines will be outlined by the inclusion of ultra-long-haul flights and growing opposition from low-cost carriers, which are not only multiplying but also quarreling for long-haul routes.
Technology is making significant moves too. Hotel chains are showcasing new progress to deeply personalize the guest experience. Mobile usage and activity regarding corporate travel prices, moreover, is driving travel agents and managers to promote their booking apps constantly, which also serves to adjust major in-policy booking automation.
2019 will also face an augmentation in preference among business travelers for ride-hailing apps as interest in high-speed trains will decrease, due to high network prices and low-tech distribution methods.
These projections were explained in the fifth annual global travel forecast, disclosed by the Global Business Travel Association.
IATA’s New Distribution Capability - The rise of airline tickets
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 around the globe
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 more tailored to their needs —which translates into investment into tech markets using app development for greater booking autonomy and demands by the customer.
The best offers in luxury hotels are also going to have a stronger presence in the sector’s agenda.
Spain will replace the United States as the second most popular destination in the world. According to the United Nations World Tourism Organization, the cost of hotels is expected to increase by 8.5%. A percentage much higher than the global (3.7%) and the Western European (5.6%). This increase will be somewhat better in mid-range hotels (8.6%) than in high-end hotels (8.4%).
Following the wake of the air prices, hotel rates will show a valuable rising in Western Europe by 5.6%, while in its version of Eastern Europe (1.9%) and in the countries of the Middle East and Africa ( 1.5%). As usual, Norway stays leading the list with an increase of 11.8%, followed by Spain, with 8.5% already mentioned. Finland, with 7.1%, and France and Germany, with 6.8%.
In Latin America, corporate travel prices are expected to fall by 1.3%, with decreases in Argentina (3.5%), Venezuela (3.4%), Brazil (1.9%) and Colombia (0.7%). Nevertheless, other countries such as Chile, Peru, and Mexico will register 6.4%, 2.1%, and 0.6% respectively. In North America, prices will arise with 5% in Canada and 2.7% in the United States.
In the Asia Pacific, costs are likely to come up by 5.1% in the market, with great discrepancies among the countries in the area. Thus, it is expected to fall by 3.2% in Japan, an impressive 11.8% will be seen in New Zealand.
In Australia, hotel availability is expected to wake only in the next two years, with a percentage of 3.4% of the total provision each year. In Indonesia, Swiss-Belhotel International plots to expand its conversions, Zest Hotels, plans to triple its number of properties in three years. Singapore projects seem to focus on tech strategies to deliver smarter hotels. Lastly, in Thailand, optimism stays high after their convulsive political period.
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 shared cars will be likely to become ever more popular.
Technology and connectivity are expected to work in synchronization as one, to provide users the capacity to stay in touch with the world, do business, move packages, and get from point A to point B as quickly and reliably as possible.
This aspects of supply and demand charts explain why corporate travel prices are likely to increase next ye
Click here if you want to know about some corporate travel trends