Mixed news for Canadian travellers
Hotel prices going up in 2017, but airfares staying flat, study says
Hotel prices in Canada and the U.S. could climb as much as five per cent next year, but airfares should remain flat, a new study suggests.
The 2017 Industry Forecast from travel group Advito finds that economy airline fares should remain fairly steady next year and that business class fares will rise only about one per cent.
There are some regional differences to consider. Business class fares likely will increase around three per cent in Asia and the Southwest Pacific, but should stay flat in Europe and Latin America. That’s the relatively good news. The bad news for Canadians is that hotel rates in Canada and the U.S. next year are expected to climb between three and five per cent, Advito suggests, with slightly smaller hikes for Mexican hotels.
In Europe, a lack of new properties and a modest economic recovery likely will push rates up by two per cent or so.
The Middle East and Southwest Pacific also will see a rise in rates.
The Advito report says business travellers are using Airbnb to reduce costs, especially in cities where hotels are expensive.
Their experts also note that ho- tels are increasing their efforts to get folks to book directly with them, which means they avoid paying middlemen and online booking agencies, such as Expedia.
On the airline front, the report says Canadians “have better flight choices than ever before, with more routes, more frequencies and bigger aircraft.”
“Air Canada has grown its intercontinental network dramatically, adding new transpacific and transatlantic routes, including Toronto- Seoul, Vancouver-Delhi and Montreal-Lyon,” the report said.
Advito also noted that WestJet is bringing “low-cost options to the transatlantic market, with services from Calgary, Edmonton, St. John’s, Toronto, Vancouver and Winnipeg.”
As well, Air Canada rouge has seen a significant expansion overseas, with routes to such places as Curaçao, Honolulu and Lisbon.
A recent study from Kiwi.com found that Canada has the sixth most expensive airfares in the world. The U.S. was ranked 17th.
The Advito report notes that new low-cost carriers in Canada could help ease that situation.
NewLeaf has started flying out of cities such as Abbotsford, B.C. and Hamilton. There is also talk of new airlines from Canada Jetlines and a company called Flytoo.
Business travellers are using Airbnb to reduce costs, especially in cities where hotels are expensive.