Travelling abroad is expected to cost much more in the coming year, with a nearly 4% spike in some sectors. The 2018 Global Travel Forecast has revealed that expenses such as hotel prices are expected to rise by at least 3.7% in the coming year as Britain is predicted to be hit hardest, while even taxis, trains and buses might cost more.
With the world facing political uncertainty from all angles, the rising prices are a product of inflation, higher oil prices and increased demand as more companies are going global. Travelling from the UK could present a problem in the next year, as Brits could face airfare growth of a massive 8.5%, while western Europe is expected to pay 5.5% more for air travel. Brits are also predicted to be among the most affected by hotel prices, with fees rising by 9.5%. Other notable price spikes include World Cup 2018 host Russia and Norway, which will see a rise in hotel prices of 14%.
“The higher pricing is a reflection of the stronger economy and growing demand,” said Kurt Ekert, President and CEO of Carlson Wagonlit Travel, which conducted the research in conjunction with the GBTA Foundation. “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.”
Fortunately, the rise of transport apps such as Uber, Gett and Lyft have kept the ground transport industry competitive, with prices only growing by around half a per cent in 2018. Car prices are also expected to halve as industry experts prepare for record new car sales in the next five years. Between rental services, cheaper cars and competitive taxi alternatives, the market share for road transport is expected to fluctuate in the future.
“Geopolitical risks, uncertainties in emerging markets and ever-changing political environments in Europe and the United States mean today’s travel professionals have more than ever to take into account when building their travel programmes,” said Jeanne Liu, GBTA Foundation Vice President of Research. “The most successful programmes will have to keep a watchful eye on both geopolitical risks and a rapidly-changing supplier landscape as they re-evaluate strategy often and adapt as necessary.”