Prices to rise on back of costs and demand

HOTEL rates and airfares are set to increase in 2020, according to the latest forecast from BCD Travel.

Driven by demand and high occupancy rates, hotel prices will rise by 1%-3%, while airlines will hike fares by an average 1%-2% to compensate for higher fuel and labour costs.

Rate increases will be higher in Asia, particularly Japan, host of the 2020 Summer Olympics, and Vietnam, where both leisure and business travel demand is strong.

BCD’S 2020 Industry Forecast predicts that airfares in Latin America will experience the largest increase, jumping 3%, while intercontinental business class fares will remain flat. Strong demand will boost hotel occupancy, with Asia, the US and Canada seeing average rises of 2%-4%. “Buyers face the prospect of a slowdown in advanced economies, while the performance of emerging markets improves,” says BCD’S Director for Research and Intelligence, Mike Eggleton.