According to Advito’s 2017 industry forecast report, emerging markets are expected to continue their business travel growth as business travel remains cheap.
The strength of the U.S. dollar, along with terror fears and a stagnant global economy, led many international companies to reduce their travel spend. Mediocre economic growth in Europe and South America also contributed to the malaise.
The report states that, emerging markets are set for a stronger economic performance in 2017, at 4.2 percent, growth will surpass the 3.5 percent forecast for 2016. This improvement is largely driven by Latin America, primarily due to Brazil, which is expected to emerge from a prolonged recession, but also because of stronger growth from Argentina and Colombia.
The report indicates that global hotel rates should see a modest increase over the next year, between 1 to and 3 percent, while airfares are expected to stay flat globally.
North America, the Middle East, and the Southwest Pacific are most likely to see hotel rates increase.
