Global economic growth will be stronger in 2014 as advanced economies continue to recover. But that recovery won’t translate into an across-the-board uptick in airfares and hotel rates, according to a 2014 Industry Forecast update released this week by market-leading consulting firm Advito.
Advito, an arm of BCD Travel, monitors changes in economic growth, inflation, travel demand and oil prices. It revises its annual Industry Forecast each quarter to ensure timely air and hotel pricing predictions.
The current update points to the acceleration of capacity growth in some emerging markets, which is likely to lower airfares in areas like the Middle East. Here are some of the other key changes called out in the update:
• Advito is raising its regional economy and intercontinental business airfare forecasts for Latin America in light of higher demand than originally predicted.
• Stronger-than-expected hotel demand in London will drive U.K. average daily rates upward.
