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Airfare and Hotel Prices Will Stabilize in 2020, Study Says | Travel Market Report

After a year of rising airfares and hotel rates, travel industry pricing will level off next year, according to a report conducted by CWT (formerly Carlson Wagonlit Travel) and the Global Business Travel Association.

“We believe that prices are set to slow down in 2020,” Christophe Renard, vice president of CWT Solutions, said at a press briefing in advance of the study’s release.

While a damper on price hikes should be good news for travel advisors and their clients, the factors behind it are less positive, he noted. Risks and uncertainties, including escalating trade wars, the impending Brexit deadline, and possible disruptions to the oil supply, are adding to general fears of an economic slowdown in some parts of the world, even though, overall, the global economy is expected to grow a solid 3.6% next year.

The outlook varies according to region. Airfares and hotel rates in Western Europe will barely budge in 2020 from this year’s levels, with increases of .5% and .7%, respectively, the study predicted. In North America, the prices of both air and lodging are expected to rise 2.3%; car rental rates will remain flat at 1% above 2019 levels.

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Airfare and Hotel Prices Will Stabilize in 2020, Study Says.

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