CONTINUED sluggishness in the eurozone is softening growth rates in other regions as the end of year approaches, according to the 2013 Industry Forecast by Advito, BCD Travel’s independent consulting unit.
Looking ahead to 2013, Advito predicts that demand will continue to outpace supply, with airlines keeping a particularly tight hold on inventory. As a result, buyers should brace for low- to mid-single digit price hikes in airfares and hotel rates.
Drawing upon industry and economic data through August and transactional (hotel and air) data through June 2012, the Advito 2013 Industry Forecast predicts moderate airfare increases across all regions.
The strongest demand will occur in Latin America, with expected year-over-year airfare increases between six per cent and seven percent, and lowest in Europe (two per cent to three percent). North America and Asia will see airfare increases between four percent and five percent, and Southwest Pacific between two per cent and four percent.
Advito also forecasts hotel ADR to grow in 2013—though not as high as first anticipated. Predicted rate hikes include: six per cent to seven per cent in North America; eight per cent to 14 per cent in Latin America; two per cent to four per cent in Europe; five per cent to 10 per cent in the Middle East; five per cent to eight per cent in Asia and six per cent to 10 per cent in Southwest Pacific.
Double-digit ADR increases are probable in the top rung of international gateway cities such as New York, Hong Kong and Singapore and in some Latin American cities.