According to the 2018 Global Travel Forecast, travel prices will rise significantly, reaching nearly 4 per cent increases in some sectors.

The fourth annual forecast, by the GBTA Foundation and Carlson Wagonlit Travel, shows global airfares will rise 3.5 per cent in 2018; hotel prices will be 3.7 per cent higher; and ground transportation will rise 0.6 per cent.

“The higher pricing is a reflection of the stronger economy and growing demand,” said Kurt Ekert, president and CEO, Carlson Wagonlit Travel. “The global numbers from this forecast should be considered strong leading indicators of what 2018 will mean for global businesses, as we anticipate higher spending.”

In Asia Pacific, air travel prices are expected to grow 2.8 per cent due to increasing domestic demand, especially in China. However, as many economies in Asia strengthen, weaknesses in infrastructure — and airports in particular — are becoming apparent.

Hotel prices in Asia Pacific will likely rise an average of 4.5 per cent, with Japanese prices expected to fall 4.1 per cent and New Zealand’s expected to rise 9.8 per cent.

Ground transportation prices will likely remain flat in 2018, as uncertainty in mining and a cautious recovery in the oil and gas industry continue. Business continues to grow in China where most major car rental and sharing economy suppliers have a presence. Sharing suppliers DiDi Chuxing in China, Ola in India, and Grab in Southeast Asia, achieve continued success, making them key competitors to more traditional car rentals and taxi services. Malaysia and Singapore will push ahead in ground transportation with the construction of a high-speed rail from Kuala Lumpur to Singapore.