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2012 Travel Industry Predictions

Did you know the airlines attempted to raise fares 22 times in 2011?  Did you catch Robert’s Business Travel Newsletter today with our best guesses for 2012? If you missed it, here is the short list of what we think will happen to airfare, hotel, and car rental rates in the coming year:

  • Our best guess is airfare will increase more than 5% but less than 10%. The airlines tried to raise fares 22 times in 2011. They were successful only nine times. Most of these increases occurred in the first half of 2011. Please see comments above about demand and fare increases.
  • The entire airline industry will make a little money in 2012, but with an emphasis on “little.”  (If Europe heads into a full scale recession and China slows down, a “little profit” will become a “large loss.”)
  • Hotels will continue to raise rates faster than the airlines. We expect to see hotel rates increase more than 10% but less than 15%.
  • Car rental companies have increased rates faster than either the airlines or hotels. We do not expect the car rental companies will be able to get more than an additional 5% to 10% out of you this year.

Click here to read all of our predictions.

And, be on the lookout for our annual predictions related to leisure travel in Andrea’s Vacation Value Newsletter on Thursday! If you aren’t already subscribed, click here.

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