Air travel prices to six business hot spots expected to increase despite a more general global trend of flat prices, according to research.
Data from the Global Business Travel Association Foundation and Carlson Wagonlit Travel identified six countries — India, China, Colombia, Mexico, Singapore and Australia — where increased business travel demand is driving significant air price increases.
This is despite global air travel prices displaying signs that they will be essentially flat in 2016, the research said.
The 2016 Global Travel Price Outlook, includes global, regional and country-by-country projections for air travel, hotel, ground transportation and meetings and events prices in 2016.
It said airline prices are set to be nearly flat on a global basis due to significantly lower energy prices. But prices in the six hot spot countries are predicted to rise by between 2.7 per cent and 3 per cent next year, as a result of higher demand.
The report said 2016 would also show a global increase in hotel prices because demand is overtaking supply in every major global region. The highest rise would be in North America (4.3 per cent), followed by Latin America and Asia Pacific. Hotel prices in Europe, the Middle East and Africa would show a moderate increase of 1.8 per cent, it said.
Joseph Bates, GBTA Foundation vice president of research, said: “The top-line pricing outlook for air, hotel and ground in 2016 is surprisingly stable. But when you dig deeper, the data reveals global hot spots where demand is driving air travel price increases. For 2016, India, China, Colombia, Mexico, Singapore and Australia are projected to top the list.”