Australian hotel rates are set to keep climbing in 2013 as airfares stabilise, a new report has revealed.
The Carlson Wagonlit Travel 2013 Travel Price Index showed hotel rates would rise by up to 6.4% over the year, driven by rocketing rooms rates in Perth and Brisbane of up to 11.7% and 8.6% respectively.
Air fare increases were more moderate with overall increases of up to 1.3% projected by the report.
Intercontinental business fares were predicted to grow the most, up to 3.7%, followed by intercontinental economy fares, up to 3.6%.
Domestic business fares however, were expected to fall by at least 2.1%.
“Aggressive pricing due to vigorous competition between domestic carriers and planned capacity increases, will result in slight decreases in airline price inflation next year,” the report said.
However, any price breaks were expected to be offset by the carbon tax, implemented on July 1 this year, with airlines passing it on to customers.
“Specific charges to recoup this cost vary by airline and market, but CWT analysis has found it is causing an increase of about 1% in average ticket prices on domestic routes.”
Increased demand in Australia and New Zealand will see car rental charges climb up to 6.4%.
Meanwhile, Australia was highlighted as one of the countries that would experience the most significant growth in Asia Pacific. The region, along with Latin America, is expected to drive moderate increases in global travel prices over the year.
“Price increases in 2013 will begin to level off in most regions throughout the world compared to what travel buyers experienced in 2012, as booming economies likes Asia Pacific’s begin to normalise, and as uncertainty remains in Europe,” CWT senior vice president global product marketing Nick Vournakis said.
