The cost of travelling in the Asia Pacific region is expected to increase next year, in line with continued strong demand.
According to the fourth annual 2018 Global Travel Forecast by the GBTA Foundation and Carlson Wagonlit Travel (CWT), travel prices are expected to rise across most sectors in the coming year, with growth rates reaching 3.5% in some sectors.
Airfares in the Asia Pacific region are expected to rise 2.8% rise on average in 2018, driven by strong domestic demand in China and India. The report warned however, that as many Asian economies strengthen, weaknesses in infrastructure – and airports in particular – are becoming increasingly apparent.
Hotel rates are likely to rise 3.5% across Asia Pacific, but there a large discrepancies across the region. For example, Japanese rates are expected to fall 4.1%, but New Zealand is set to see a 9.8% increase. Strong economic growth is said to be driving demand in the Asia Pacific region, especially in high-volume markets such as Bangkok, Beijing, Shanghai and Singapore.
Asian ground transportation pricing is expected to remain flat in 2018, with shared economy companies such as Didi Chuxing in China, Ola in India and Grab in Southeast Asia all now competing with traditional taxis and car rental companies.
“The higher pricing is a reflection of the stronger economy and growing demand,” said Kurt Ekert, president & CEO of CWT. “The global numbers from this forecast should be considered strong leading indicators of what 2018 will mean for global businesses, as we anticipate higher spending.”
Globally, the forecast predicts that airfares will rise 3.5% in 2018, hotel prices are expected to increase 3.7%, and ground transportation is forecast to edge up 0.6%.