If you have missed this year's vacation because of the global economic meltdown and looking forward for one in 2010, then here's something that will set you back.
According to American Express Business Travel Forecast report, it will cost you more to fly anywhere in India and China in the coming year, and the price of hotel accommodation is also set to go up.
The price of air travel throughout this region will experience a significant rise as compared to other regions. "In India, a sharp hike of 3 to 8 per cent will be seen in domestic (economy) airfare, while the international (business class) airfare may rise between 1 and 6 per cent," says the report.
As for hotel prices, both mid-range and top-end options will experience the biggest jump of 1 to 6 per cent because of the growing gap between demand and supply. The report also predicts a drop in upper-range hotel prices elsewhere - 3 to 6 per cent in North America; 2 to 2.5 per cent in Europe; 6 per cent in Latin America.
"Business travel in Asia-Pacific region dropped by 9 per cent as the corporate sector slashed its travel budgets. This led to many carriers announcing prices that were not viable in the long run," says Manoj Chacko, head of American Express Business Travel in India.
"But with corporate travel back on track, the rates will only go up." Travel experts couldn't agree more with the report because the airfares on the domestic sector have been on the rise post-Diwali.
An increased load factor on key sectors is said to the reason why airfares will head northward. The economic slowdown had forced many carriers, both national and international, cut down their capacity to rein in losses. But with air traffic slowly swelling in numbers, carriers can cash in on the skewed demand-supply position.
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