Intercontinental economy airfares will rise 1 percent globally in 2018, according to BCD Travel's midyear update to its 2018 Industry Forecast. BCD originally predicted no change but has adjusted its 2018 rate-growth forecast because of stronger global air travel demand and rising oil prices. Heavier demand also led to upward revisions for intercontinental economy airfare forecasts for the regions below.
Regional economy fares will increase by 1 percent globally, as originally expected. However, there were some changes by region, listed below.
Business class fares, both intercontinental and regional, will rise 1 percent in 2018, according to BCD, which changed its Asia intercontinental business class airfare forecast from static to a 1 percent increase and its Europe intercontinental business class airfare forecast from a 2 percent rise to a smaller 1 percent increase. Of note among regional business class airfares, BCD's growth forecast for Latin America adjusted upward from a 1 percent drop to zero change.
Hotel rates will grow between 2 to 4 percent globally, as originally expected. However, BCD Travel revised its forecasts for the regions above.
The forecast, previously produced by BCD consulting arm Advito, now is produced by BCD Travel's research and intelligence team.
Business Travel News 3/21/2018