Travel Trends

 

Travel is one of the most rewarding things one can do in life. It’s an amazing way of collecting new experiences and it allows people to grow both professionally and personally.Unfortunately, it can also be one of the most expensive.

This past July, the Global Business Travel Association (GBTA) released their 2018 Global Travel Forecast. The report shows the travel trends for 2018. Travel prices all around the world will dramatically increase in the coming year.

The increase of travel prices comes as no surprise, since the global economy should grow 3.6% in 2018. This is a jump from 2016, where the economic growth was only 3.1%, and a slight increase from 2017’s 3.5% expected growth.

 

Travel Trends: Up, up and away…

Overall, the price of travel is set to rise all around the world. However, the amount it will increase by differs depending on the country and region.

 

Air    

Globally, the price of air travel is set to grow by 3.5% in the coming year.

This increase is largely due to higher demand, with the airline industry expecting a 7% growth by the end of 2017, and another estimated 6% in 2018. The travel increase is also an effect of rising oil prices in 2018.

In the United States, air travel prices will likely increase by 2.3%, while Canada will see a 3.3% increase. And in case you were curious, the highest travel increase will occur in Eastern Europe, due to the more limited number of carriers, as well as the 2018 FIFA World Cup.

 

Hotel

The overall price of hotel accommodations should surge 3.7% in 2018.

In 2018, the United States’ hotel prices will rise 2.7%; Canada will as well see a higher surge, with hotel prices inflating 4.4%. Also, Eastern Europe will again see the highest increase in hotel prices with 6.6%.

In the coming year, we will also see a global trend towards the cultivation of brand loyalty through more personal traveller relationships.2 Cinzia Ruberto, Encore Travel’s very own Vendor Relations Specialist, anticipates mobile apps will be the means of creating these personal relationships.

“The industry is also seeing a lot of technological advancements. Many hotels are starting to incorporate mobile apps into their procedure. For example, guests staying at the Hyatt can check-in and out via their mobile app. Guests can also use the app to view their room charges throughout their stay and to request items to their room, such as extra towels or pillows,” said Ruberto in a recent interview.3

 

Ground Transportation

Of the three, ground transportation will see the lowest global travel price increase in 2018, at only 0.6%.

However, locally, it’s a different story. The United States will see a 1.0% increase, while Canada should expect a whopping 4.6% surge –the highest of out of every region.

The rise in environmentally-friendly rental cars will also impact this industry. Stricter emission laws in certain areas, as well as oil price are causing this shift.2

 

 

The light at the end of the tunnel

So, how can your organization avoid falling victim to these travel trends?

Make sure that your organization has a travel program.

Your Travel Management Company (TMC) will help you create a travel program that is tailor-made to your organization’s and travellers’ needs, and will generate long-term savings.  With their assistance, you will negotiate better rates with preferred travel vendors on your behalf, allowing your travellers to book smart, without having to sacrifice comfort.

They’ll also work with you to create, or update, your travel policy. Having a travel policy places set parameters on the amount your travellers can spend on their travel arrangements, as well as the number of days in advanced they make their travel arrangements –last minute bookings usually lead to higher spending!

Your TMC can also provide you access to your organization’s travel data. Your data shows you how much your organization is spending vs. saving, in caparison to previous years. You are also able to identify travellers who are not booking their travel arrangements in compliance with your organization’s travel policy, which enables you to personally address them to ensure that they’re using your preferred vendors and negotiated rates.

Without a travel program, your organization risks falling victim to the travel price increases in 2018.

 

Will these travel trends and travel price increases keep you from travelling in 2018? We’re curious to know!

 

Sources

  • GBTA: Strength in Global Economy Means Higher Travel Pricing in 2018
  • GBTA: 2018 Global Travel Forecast
  • Encore Travel: Hotel Industry Trends from an Insider
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