Credit: Source for all charts: BCD Travel 2018 Industry Forecast Update
Intercontinental economy airfares will rise 1 percent
globally in 2018, according to BCD Travel's midyear update to its 2018 Industry Forecast.
BCD originally predicted no change but has adjusted its 2018 rate-growth
forecast because of stronger
global air travel demand and rising oil prices. Heavier demand also led to upward
revisions for intercontinental economy airfare forecasts for the
regions at right.
Regional
economy fares will increase by 1 percent globally, as originally expected. However,
there were some changes by region, listed below right.
Business class fares, both intercontinental and regional,
will rise 1 percent in 2018, according to BCD, which changed its Asia
intercontinental business class airfare forecast from static to a 1 percent
increase and its Europe intercontinental business class airfare forecast from a
2 percent rise to a smaller 1 percent increase. Of note among regional business
class airfares, BCD's growth forecast for Latin America adjusted upward from a 1
percent drop to zero change.
Hotel rates will grow between 2 to 4 percent globally, as originally
expected. However, BCD Travel revised its forecasts for the regions at bottom right.
The forecast, previously produced by BCD consulting arm
Advito, now is produced by BCD Travel's research and intelligence team.