Moderate Increases in Travel Prices Expected for 2015

June 12th, 2014 |

Moderate increases expected air, hotel and ground transportation prices next year, according to the results of a price forecast conducted by Rockport Analytics.  The study, commissioned by Carlson Wagonlit Travel (CWT) and the Global Business Travel Association (GBTA), analyzed historic price transactions and their correlation with key economic drivers along with key supply-side metrics.  With rising demand, favorable cost structures and slowly expanding capacity, airfares are expected to rise gradually through 2015, by as much as 2.2 percent, although low-cost carriers are limiting price increases in some regions.  Hotel suppliers will be in a better negotiating position than they have been for some time in 2015, due in part to stronger demand and investor interest, and favorable capital costs. This improved outlook could lead to greater pressure on negotiated rates for travel managers and buyers, and globally, prices are expected to rise by as much as 2.6 percent.  In contrast to the air and hotel sectors, the ground transportation industry has an abundance of supply. With industry consolidation and strong competition, global prices are expected to remain flat throughout 2015. Learn More.