According to Advito's travel forecast, there will be a sudden increase in the hotel rates around the world while the global airfares remain even in 2017.
Hotel Rates Rise
In a report released by the travel consultancy company, up to 5 percent is the expected blow up worldwide in hotel rates by next year.
Among the regions with anticipated huge inflations are in North America, Southwest Pacific and Middle East countries. Hotel rates are predicted to hike between 1 and 3 percent because of an insufficient supply and strong demand, as stated in a report by MSN.
In Us and Canada, hotel rates will climb by 3 to 5 percent while a lesser increase is expected in Mexico. Meanwhile Europe as well as Africa regions have the weakest expansion because of softer demand.
The business class fares will boost while the economy fares will remain constant. Due to low price oil and extra capacity, economy fares will remain unaltered.
While there will be 3% hike for regional business fares in Asia and Southwest Pacific, business fares will remain flat in the regions of Europe and Latin America.
As the intercontinental economy fares are likely to drop marginally in all places excluding Europe, Latin America's regional economy fares will have 2% depreciations.
Overall Price Projections
It is not the increase in supplier rate but the uncertainty might be the dilemma that travel managers would face in 2017.
The predicament in the market performance, global economy, geopolitical relationships, interest rates and commodity prices weakened the potential in the leading business markets globally.
As stated in a report by Business Travel News, suppliers in North America will keep the strongest general price positioning next year.
Due to frequent terrorist activity and withdrawal of the United Kingdom from European Union known as Brexit, the regions of Europe, Middle East and Africa are the most delicate when it comes to travel pricing.
The Caribbean and Latin America suppliers will face overall rate reductions, while Asia/Pacific is looking at moderate gain in airfares and hotel rates by next year.