Published Airfares, Hotel Rates Set to Increase in 2008

Published airfares will increase up to 4 percent next year, while hotel average daily room rates in some markets may achieve double-digit increases, according to the released BCD Travel 2008 Industry Forecast.

Worldwide, published airfares are predicted to rise 2 percent to 4 percent on average in 2008. The report expects corporate airfares to increase by less than 2 percent, thanks in part to an increase in corporate discounts.

In the same breath, the group expects the 2008 average daily room rate to increase by 6 percent to 9 percent. Some markets may see double-digit increases. Although some European hotel markets are trending lower due to over-capacity, average daily rates in most markets are expected to continue to grow.

Consolidation and privatization in European markets will push average rail fares upward in 2008. But increased productivity gains for traveler and travel arranger alike are expected with the introduction of rail booking through traditional channels.

Average group room rates will increase 8 percent to 10 percent in major markets in 2008. Global meeting planning is expected to be in direct correlation with company expansions into emerging markets. The Asia Pacific and Middle East regions are anticipated to be high-demand destinations.

Car rental rates will increase by 5 percent to 7 percent in 2008, continuing a trend predicted in 2006.