Global travel prices are expected to rise sharply in 2019, with hotels going up 3.7 per cent, and flights 2.6 per cent, driven by a growing global economy and rising oil prices, according to an industry forecast.

Airfares are likely to become more expensive due to rising oil prices, the competitive pressure from the shortage of pilots, potential trade wars and increasing fare segmentation to improve yield.

In some countries, including New Zealand, India, Germany, Chile and Norway, airfares are expected to rise by more than 7 per cent, said the annual Global Travel Forecast released by Global Business Travel Association (GBTA) and Carlson Wagonlit Travel (CWT).

Hotel rates in 2019 will also rise, driven by the overall increase in air travel, which will fuel demand for rooms. Hotel prices are expected to rise by over 5 per cent in Asia and Europe, by 2.1 per cent in North America and to fall by 1.3 per cent in Latin America.

"While most major markets appear to be trending in the right direction, downside risks remain for the global economy given the rise of protectionist policies, the risk of stoking trade wars and Brexit uncertainty,” said Michael W. McCormick, GBTA executive director and COO. - TradeArabia News Service