The cost of air travel is likely to rise by as much as 13 percent next year, according to a new industry forecast. Average fares are expected to go up by between 6 and 8 percent while additional fees will increase the total cost of air travel even more, according to the study. Airlines will react to the “challenging environment” by further trying to reduce costs and exploring ways to add new revenues, leading to an increase in the total cost of air travel, the 2009 Industry Forecast from Advito, an independent consulting unit of travel management company BCD Travel. On average, the company predicts 2009 rates to increase against 2008 by six percent to eight percent, but with clear differences by region and trip category. Unlike previous years, unbundling of services and the resulting fees are on the rise, and are projected to add another three percent to five percent to the total cost of air travel. Corporate meeting budgets and the number of meetings will not increase, but the cost of conducting these will, it added. “Increases are projected to mirror those on the transient side, between four percent and eight percent. Certain markets are again projected to display significant rate variation, with some cities in Asia Pacific and the Middle East predicted to be high-demand destinations.” |