Flying to Asia popular, prices will fall further in 2014

Flying to Asia popular, prices will fall further in 2014

The number of travelers between Europe and Asia is rising spectacularly, while prices will continue to fall in the coming period, according to Advito in the Industry Forecast for 2014.

The prices for flights within Europe remain the same. In addition, Europe is gradually catching up with the US in terms of additional costs for services that used to be free.

Various reports indicate that the economy is growing somewhat again. According to Advito, price increases for airlines, hotels and car rentals are generally in line with inflation. However, Europe is clearly following the – originally American – trend of additional costs.

Airlines are increasingly charging for services that used to be included in the price, such as luggage and meals. Loyalty programs still offer exemptions for the time being, but it is suspected that they will soon be replaced by more expensive all-in packages.

Cheap flights on the rise

Other important predictions: prices for flights within Europe remain the same in Economy Class. The price increases in Business Class and on intercontinental flights are lower than expected and in line with inflation.

Flights to and from the Middle East are becoming visibly cheaper: the large offer and competition from the golf companies are causing an average price drop of 5%, even though the number of passengers between Europe and the Middle East is increasing by 12,2% in Economy and 8,6% in Business Class. Between Europe and Asia, the number of travelers in Economy grew by 6,1%.

Cheap flying is clearly on the rise, as low-cost airlines easyJet, Ryanair and airBerlin are starting to feel the competition from Wizz Air, Vueling, Germanwings and Norwegian.

Hotel prices are rising in top cities

The number of hotel bookings is increasing in most regions, although the increase is less clear in Western Europe. The large hotel chains tried to raise their prices by 2013% in 9, but that was too ambitious. Current figures show that hotel prices are rising by about 4-5% everywhere except in Europe and the Middle East, where the increase is more limited. European top cities such as Rome (+20,4%), London (+8,4%) and Munich (+10%) did show strong growth in the first quarter of 2013.

Dealing appropriately with terrorist threats

There is little unrest among travelers about terrorism or epidemics, although the terrorist threat from al-Qaeda in August and the calamities in Egypt and Syria show that this can change quickly. With the riots in Northern Ireland, Brazil and Turkey, we now know that both existing and new markets are not immune to social disruption.