• Global airfare to remain flat while hotel rates to rise in 2017: report

    September 21, 2016
    Global airfare to remain flat while hotel rates to rise in 2017: report

    Paris ( AFP ) : A new travel report forecasts that global hotel rates will increase by up to five percent in 2017, while air fares will remain stable.

    According to travel consultancy group Advito, hotel rates are predicted to increase between 1 and 3 percent next year, with the strongest inflation expected in North America, the Southwest Pacific and the Middle East.

    Insufficient supply is cited for the rising rates in North America and the Southwest Pacific, and strong demand is also expected to drive up rates in the Middle East.

    Good news for travelers eyeing a trip to Africa and Europe, however, as those regions will see weakest increases due to softer demand.

    Rates in the US and Canada are expected to rise between three and five percent, while travelers planning a trip to Mexico will see smaller increases.

    Meanwhile, the news bodes well for travelers expecting to take flight next year, as analysts predict that economy airfare will remain flat overall thanks to low oil price and extra capacity.

    Regional business fare in Asia and the Southwest Pacific may experience a three percent hike, while intercontinental economy class fare is expected to fall slightly, with the exception of Europe.

    The report also pointed that the number of weekly seats from China to North America has soared by 38 percent over the past two years thanks to new transpacific routes and a growing list of Chinese airport access.

    Sept. 21 , 2016

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