The fourth annual 2018 Global Travel Forecast has just been released, revealing that travel prices are expected to rise in the coming year, with Singapore's airfares set to increase by 3.8 per cent and hotel prices to rise by 3.2 per cent, in line with the global trend.
The study was released by Carlson Wagonlit Travel, a global travel management company, and the GBTA Foundation, the education and research arm of the Global Business Travel Association.
According to Mr Kurt Ekert, president and CEO of Carlson Wagonlit Travel, "The higher pricing is a reflection of the stronger economy and growing demand, (where) the global numbers from this forecast should be considered strong leading indicators of what 2018 will mean for global businesses."
However, what does all of this mean for Asia, or more specifically, Singapore?
Asia Pacific (which apart from SEA countries, also includes Australia and India) airfares are expected to rise by 2.8 per cent in 2018 due to the growing domestic demand, particularly in China and India, coupled with poor airport infrastructure, leading to insufficient capacity and supply.
Singapore, however, is expected to see a 3.9 per cent increase in airfares in the coming year, despite the approaching opening of Changi Terminal 4 which will ease capacity pressures. The reason behind this lies in the expected increase in airport development fees.
Other reasons for the rise include higher fuel oil prices, fare segmentation, as well as new long haul routes.
Globally, airfares are set to increase by 3.5 per cent next year, riding on the back of a growing global economy.
Asia Pacific hotels are expected to see a rise of 3.5 per cent rise in prices in 2018, due to the surge of growing economies in the region.
For Singapore, hotel prices are expected to rise by 3.2 per cent. This is likely due to the consolidation of hotel groups, which will result to fewer competitive prices as compared to that which is seen in more fragmented markets.
On the global scale, hotel prices in general are predicted to grow by 3.7 per cent on average in 2018.
"Rising hotel and airfares are unlikely to deter travel-hungry Singaporeans, plus the fact that our country is a very small island and the whole world outside awaits," said Ms Justine Koh, marketing communications executive of Chan Brothers Travel, in response to AsiaOne's query on its effect on tour packages.
"Hotels and airlines will likely continue tactical promotions in order to boost sales and the surest way to seize the best fares is really to book early if you are inflexible with your travel plan or watch out for these promotions from time to time if you are flexible with your travel plan," added Ms Koh.