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The Cost of Travel is Expected to Rise in 2013
Travel expenses are likely to increase next year around the globe with hotels in Asia Pacific and Latin America showing the largest inflation. This information is published in the latest Travel Price Forecast prepared by Carlson Wagonlit Travel (CWT).
There are several significant factors that may turn these forecasts into reality. For example, Asia Pacific region has featured a strong economic growth within recent years. However, this situation is not likely to continue as the growth is expected to stabilize in 2013. This fact may cause increases in rates. The amount of increases will probably vary in different countries. The average hotel daily rate is expected to add approximately 3.5%. Hotels in Singapore will feature the highest increase in average hotel daily rates that may add 8%. The growth will be geared up by strong travel demand and slowly increasing supply.
The second region with the biggest growth of hotel rates will be Latin America. The economic growth of the region is not expected to slow down in 2013, but due to significant disparities the cost of travel will certainly go up. The average increase of daily hotel rates in expected to add 6.3% during the next year. Brazil will feature the highest growth of hotel rates. CWT names it as the only country that is likely to reach double-digit price increases in 2013. This may happen because of increasing demand and very limited supply in the hotel market of the country. This may change soon though as the country’s supply will growth because of 2014 FIFA World Cup and 2016 Summer Olympics.
Finally, Europe and the Middle East will face moderate increases of travel costs. While the economy of the Middle East is in a reasonably good state, Europe is characterized by economic uncertainty. Therefore, the situation may change in either way in 2013. The growth of daily hotel rates is likely to estimate 1.3%.
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