Global Hotel Rates to Rise 1 to 3 Percent, Airfares 1 to 2 Percent in 2020, Says Report
By Harvey Chipkin
Global hotel rates will increase by 1 percent to 3 percent and airfares by 1 percent to 2 percent in 2020, according to BCD Travel’s 2020 Industry Forecast. The increase in global hotel prices is being driven by solid demand keeping occupancy high in most regions. Rate increases will be higher in Asia —particularly Japan, host of the 2020 Summer Olympics, and Vietnam, where both leisure and business travel demand are strong. Meanwhile, airlines will raise average fares in most markets to help offset higher fuel and labor costs. Hotel rates in North America will climb 2 percent to 4 percent in the US and Canada and up to 2 percent in Mexico. New properties will continue to open in Asia but demand will outstrip supply and rates will rise by 2 percent to 4 percent.