According to a new report, prices of travel are set to increase globally in 2018. In other words, it’s time to book that trip you’ve been planning ASAP.
Global travel management company Carlson Wagonlit Travel (CWT) and the GBTA foundation just released their fourth annual Global Travel Forecast. The report, meant to help travelers plan and budget for the year ahead, was conducted with assistance from Rockport Analytics.
Apparently, while the global economy is slowly improving thanks to rising consumer and business confidence —the International Monetary Fund expects a 3.5% global economic growth for 2017—this doesn’t correlate to lower prices for global travel. Airfare and hotel prices are specifically expected to increase in 2018, at 3.5% and 3.7% respectively.
The report credits the rise in airfare pricing to a number of factors, among which are a projected rise in oil prices and an increase in demand for travel. Meanwhile, hotels are getting more expensive, but they’re also getting smarter: In-room entertainment and mobile-friendly operations (like using a cell phone to check in or unlock a hotel room) are becoming the norm.
The increase in price varies by region for both airfare and hotel cost. For plane tickets, the most drastic rise is expected in Eastern Europe (7.1%) while travel to Latin America is set to remain the most stable (0.3%). Those regions stay the same in terms of hotel prices, with Eastern Europe projected to experience the biggest rise in hotel pricing (6.6%). Latin America is slated to be the only region with a decrease in accommodation costs, set to see a 1.2% decrease in 2018.
According to the Global Travel Forecast, Eastern Europe’s somewhat unexpected position as the most expensive place to travel to next year is largely thanks to the upcoming 2018 World Cup, which will be held in Russia from June 14 to July 15.
“Travel buyers should book in advance or postpone to ensure availability and to avoid short-term price hikes,” advises the report.