CWT warning on pricing

After posting sharp rises in 2019, prices in the global travel industry are likely to slow in 2020, with flights rising a modest 1.2%, hotels rising only 1.3%, and rental car rates up 1%.

The picture emerges from the sixth annual Global Travel Forecast from CWT and the Global Business Travel Association (GBTA), which says while the global economy is doing well overall “a raft of uncertainties” is set to put a damper on pricing.

CWT president and CEO Kurt Ekert said: “The risks and ambiguity have increased over the past few months – not least the threat of escalating trade wars, the impact of Brexit, possible oil supply shocks and the growing likelihood of recession.”

He said the forecast, using data generated by CWT Solutions Group to give an early look at trends and developments, would help travel buyers to make the right decisions “in an increasingly challenging environment”.

The study analyses trends cross three industry sectors – air, hotel and ground – in four main markets: First, Asia Pacific, then Europe (East and West), Middle East and Africa, followed by Latin America and finally North America.

In Asia Pacific, for example, it forecasts growth of 1.3% in the aviation sector, 1.3% for hotels and 0.5% for ground. Figures for W Europe are 0.5% for air, 0.7% for hotels and 0.5% for ground.

www.mycwt.com/insights/forecast

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