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Airfares and hotel prices to increase by over three percent in 2018

The 2018 Global Travel Forecast expects airfares in Singapore to go up by 3.9 percent, with local hotel prices rising by 3.2 percent in the upcoming year.

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According to the fourth annual 2018 Global Travel Forecast released on last Wednesday (July 19), airfares in Singapore are predicted to increase by 3.9 percent next year, while local hotel prices are set to go up by 3.2 percent.

This compares to Asia Pacific’s 2.8 percent increase in airfare and a 3.5 percent rise in hotel prices.

The projections were based on research by the GBTA Foundation, along with the travel management company Carlson Wagonlit Travel (CWT) and Carlson Family Foundation.

“The higher pricing is a reflection of the stronger economy and growing demand. The global numbers from this forecast should be considered strong leading indicators of what 2018 will mean for global businesses, as we anticipate higher spending.”

– Kurt Ekert, president and CEO of Carlson Wagonlit Travel

Screenshot from 2018 Global Travel Forecast

Screenshot from 2018 Global Travel Forecast

Globally, prices are expected to grow by 3.5 percent for airfare – and 3.7 percent for hotel prices.

Director of CWT Solutions Group Asia-Pacific, Richard Johnson, said that increases in airfare are largely due to oil prices, which are presumed to go up in 2018.

Alicia Seah, Dynasty Travel’s director for public relations and communications, pointed to the growing demand and “new wealth” in emerging markets, such as China, India, and Vietnam, as the reason behind the soar in airfares.

However, the 3.9 percent rise in airfares is not that significant, given how airfares have been made competitive over the last two years due to the variety of flight options available, Seah added.

Justine Koh, marketing communication executive at Chan Brothers Travel, expressed that she does not believe increased prices will discourage Singaporeans from traveling.

“Rising hotel and airfares are unlikely to deter travel-hungry Singaporeans. […] Our country is a very small island, and the whole world outside awaits.”

– Justine Koh, marketing communication executive of Chan Brothers Travel

Consumer demand has been strong for year-end travel, including those for year-end school holidays and advance bookings as late as June next year, Koh said. She recommended that people book their flights early to ensure that they can secure the best airfare plans.

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