If you’re planning a big trip in 2018 you might want to start saving up now, as the findings of a new report predict that travel prices will rise sharply across air, hotel and ground transportation next year.
The reason – a stronger global economy, higher oil prices and rising demand from emerging markets, say analysts in the 2018 Global Travel Forecast, released jointly by global travel management company Carlson Wagonlit Travel, and The Global Business Travel Association Foundation.
“The higher pricing is a reflection of the stronger economy and growing demand,” said Carlson Wagonlit president and CEO Kurt Ekert in a statement.
“The global numbers from this forecast should be considered strong leading indicators of what 2018 will mean for global businesses, as we anticipate higher spending.”
The sector that will see the biggest global increase is hotels, with average prices forecast to rise nearly 4%. In Western Europe that figure is expected to spike 6%, led notably by Norway, where hotel rates will increase 14% .
There is good news, however, for travellers headed to countries in Eastern Europe, as prices are predicted to drop nearly 7% in that region.
When it comes to flights, travellers will likewise shell out more next year, with rising crude oil prices expected to drive up the cost of global airfares by 3.5%.
And what travellers bound for Eastern Europe save on hotel prices, they’ll likely spend on increased airfare, with prices forecast to rise 7%.
Likewise, travel to Western Europe will also be about 6% more expensive.
Airfares for North America, Asia Pacific, the Middle East and Africa will see modest rises of about 2 to 3%, while prices for travel to Latin America and the Caribbean will stay stagnant.
And while global prices for ground transportation are expected to rise slightly to 1%, that figure shoots up to nearly 5% for Canada.