Business travel prices will remain constant in 2020: Amex GBT report

It is a new year and the increase in air costs will likely remain stable because the outlook for business trips is somewhat moderate around the world.

The American Express Global Business Travel Monitor 2020 report reduced demand for air and economic forecast numbers and found that global aviation can only increase executive-class rates on a limited number of routes. All forecasts are measured in local currency at the point of the sale price.

“While uncertainty appears to be a major problem in the coming year, we see in this report several factors that are likely to affect commercial air travel buyers in 2020, such as airline retail strategies, increased retail rate and a greater focus on sustainability ". Joachim Johansson, vice president of global business travel consultant at American Express Global Business Travel, in a statement. 

North America rates are expected to remain relatively stable this year, regardless of the significant rise in interest rates in the Australian region. There is no doubt that the increase in trade among American competitors. U. China in the region is an important contributor.

North America: Key Economic Outlook for Business Economics

North America 1.5% 1.5%

Asia 0% 0%

Australia 5% 5%

Central America and the Caribbean 0% 0%

Europe 1% 1%

Middle East 1.2% 1.2%

South America -1% -1%

It appears that the ramifications of President Trump's trade war and the general weakness of the economy will reduce demand and curb price increases in 2020. VAT Reclaim 

The report says: "The continuing global trade tensions continue to burden economic growth in North America." The expected economic slowdown in the United States will also affect the Canadian economy. In this context, and due to a large increase in capacity, the price of airline tickets in North America is expected to increase by only 1.5 percent in commercial and economic cabins. Price changes are expected to be minimal in most major roads from North America. "

In Europe, too, concerns about Britain’s exit from the European Union and intense competition among low-cost airlines will further hike air prices in 2020. Commercial flights to North America and Asia will increase further, due to strong demand for business flights in both regions. 

The tough times for European airlines mean more pressure to reach passengers despite lower prices.

"In a moderate economic context and with concerns about spare capacity and passenger projections, IAG, Lufthansa Group and Air France-KLM have announced they are reducing capacity growth in some of their brands," he said. Report 2020 travel business ideas "could see a wave of consolidation in Europe, as the competitive open aviation area, high regulatory costs and ineffective infrastructure put great pressure on profits, causing airlines to withdraw or merge." 

Finally, flying is more expensive for Asian business travelers in the region. Economic trips within Asia are expected to increase by 3 percent, while prices to North America will be reduced by 1 percent.

Australia: Key Expectations of the Business Economics Road

Australia 0.3% 3%

Asia 0.8% 2.3%

North America -1% -1%

If the global economy moves into 2020, lower ticket prices may help business leaders further reduce the agreements their companies need to thrive. Don't worry about it, things will be fine.