Travel agents and frequent business travelers will want to pay special attention to the latest information from Carlson Wagonlit Travel (CWT), the global travel agency. Each year, they issue a forecast of what they expect the following year’s global travel forecast will look like.
The goal of the report, says CWT is “to enable travel buyers around the globe to create and support their travel programs for next year whether local, national, regional or in-between.”
Here are a few of their predictions from their 2019 Global Travel Forecast.
The Asia Pacific region will see price increases: 3.2% for air, 5.1% for hotel, and .5% for ground transportation. The growth of the tourism and business travel market for Asia (especially China, now the world’s biggest corporate travel market) is putting pressure on the travel industry, which means travelers will have trouble not only getting rooms at their preferred properties but at their preferred rates as well. So book early, and have a backup plan ready.
The Fullterton Hotel in Singapore
There will be a global increase in demand for rooms. We already said tourism and business travel is going to grow in Asia, but this is also true for Europe and Africa. Plus, the introduction of “ultra-long haul flights” will also increase leisure and business travel. More people going to more places means a need for more hotel rooms. While this means that there will eventually be more hotels, it doesn’t help in the short term, so make sure you book early or consider Airbnb and other room-sharing websites to find a place to stay.
Rental car companies will increase their prices, at least in the U.S. CWT is expecting to see an increase in car rental prices in Q4 2019, as the three main car rental agencies — which cover 90% of the US market — are seeing their fleet costs and maintenance costs increase and the residuals on their used cars are going down. The projected increase in price is 1% for corporate business travelers.
Amazon’s artificial intelligence is going to have an impact on travel According to CWT’s report, the travel industry is full-to-overflowing with all kinds of data on travelers — credit card, travel and expense HR data, combined with all the actual travel data like flights, car rental, and hotels — AI and machine learning systems are able to personalize and automate a lot of business travel functions. This means self-booking travelers are more likely to interact with a chatbot than a real customer service person on the other end of the computer line.
Fare tracking, fare forecasting, and the use of chat bots to book flights and hotels are increasingly the norm. Personalizing travel is no longer just about upgrades and ancillary services. Algorithms are being built to fully understand traveler preferences and behavior, and to extract more revenue by offering relevant products and services in real time.
Right now, as the economy is in an upswing, we’re expecting more and bigger things to happen in the global travel market. More of you will be traveling more often to more places. Of course, you’ll pay a little more too, but if you’re able to see a positive ROI on your business travels, or just have a fun time on vacation, it will all be worth it. Just remember to book things early, and always keep your confirmation numbers handy.
What are your travel plans for 2019? Do any of Carlson Wagonlit’s predictions have an effect on what you’re planning for next year? Share your ideas and your own predictions on our Facebook page, or on our Twitter stream.
Photo credit: Holgi (Pixabay, Creative Commons 0)