Stat: Travel Prices Could Rise in 2015
Airline consolidations, stricter corporate travel policies and limited hotel supply are changing supply and demand dynamics and are also expected to impact pricing next year, says American Express Global Business Travel's annual Business Travel Forecast.
In North America, an improving economy in the United States will likely cause price increases across all categories, the forecast says.
The forecast features over 2,000 pricing predictions across airfares, hotel rates and car rental rates for 2015 and reveals air, hotel and ground transportation prices are expected to be neutral to slightly higher across all regions in 2015.
In North America, business travelers can expect price increases across travel categories in 2015. With an improving economy and greater corporate confidence, capacity discipline by US carriers, and the recent consolidation of the domestic market, airlines are predicted to raise their long- and short-haul fares in the coming year.
Inventory controls are likely to improve yields for airlines, leading to fewer seats in lower fare classes on busier routes.
In 2015, North American hotel rates are expected to trend upwards, buoyed by favorable economic growth, increasing demand, and a lack of new inventory.
Car rental base rates and average daily rates are predicted to increase slightly as car rental companies raise prices to remain profitable and continue to push ancillary fees, AMEX says.