The American Express Global Business Travel Forecast 2016, predicts air, hotel and ground transportation prices will see modest gains in 2016, as stronger demand will outpace supply.
Led by favorable market conditions in North America and tempered growth in Asia, the airline industry will see slight pricing gains as increased demand is offset by similar growth in capacity partially spurred by lower fuel costs. Global hotel performance is also expected to improve moderately in 2016, as limited increases in inventory fail to keep pace with the growing global appetite for travel.
Ground transportation rates are expected to remain relatively flat as overcapacity, strong competition and a continued focus on ancillary fees persist globally.
“While we expect modest increases in global travel prices heading into 2016, travel managers are operating in an era of new challenges and evolving disrupters,” said Caroline Strachan, vice president, consulting, American Express Global Business Travel. “…New factors such as the sharing economy and mobile booking channels are becoming increasingly popular for business travelers.”
Overall, North America is expected to continue its momentum from 2015 and experience healthy rate increases, while Asia-Pacific and Europe will show moderate gains.
More detailed information is available on the official AMEX report.
