Intercontinental airfares will be flat or fall in all regions for the rest of 2016, predicts business travel consultancy Advito in its recently released Industry Forecast Update, a graphical guide to business travel trends.
The forecast also indicates cheaper oil prices and low-cost carrier competition are making it more difficult for airlines to increase business fares in North America. Advito, the consulting arm of BCD Travel, has revised its outlook to reflect flat airfares for the region. It formerly had estimated North American business fares would rise 1%.
Among other Industry Forecast Update findings:
- Advito anticipates some airfare increases in Latin America and the Southwest Pacific region, as well as a fare decrease in Africa.
- Travel buyers should expect hotel rates in the United Kingdom to rise—but less than previously expected. Advito now anticipates a U.K. hotel rate hike between 2% and 4% this year, compared to a previously predicted 3-6% rise.
- In Latin America, currency devaluations against the U.S. dollar are pushing up the cost of hotel stays. The trend is particularly pronounced in Argentina, where fares paid in local currency are expected to rise 13-15%.
Download the infographic for more predictions and to find out how virtual collaboration, on-demand services and new payment options will shape business travel in the months to come.
Want to dig deeper? Download the full 2016 Industry Forecast to get detailed projections about where the business travel industry is headed.
