New Zealand flights and hotel prices are set to rise, according to a Global Business Travel Association report.
The report said the Asia Pacific region expects to see a 3.2 percent rise in airfares in 2019. New Zealand, in particular, should expect a price hike, with the highest estimated price increase across the globe estimated at 7.5 percent. India is set to have the second biggest flight price increases, going up 7.3 percent. However, the report also stated that the Indian aviation market will expand and become the biggest in the world by 2025.
“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,” the report said.
Hotel prices are also set to increase, with New Zealand prices likely to rise by an alarming 11.8 percent. Norway is the only other country in the world that has hotel prices growing at the same rate.
The report also showed that Australia is bringing new hotel rooms to market quicker than any other country, growing 3.4 percent in 2019 and then another 3.4 percent the following year.