Air travel costs expected to rise by 13 percent

According to a study by industry experts, air travel costs are likely to increase by up to 13 per cent in 2009.

Airfares, on average, are expected to rise from six to eight percent, and the additional add-on fees will bring the increase up to the 13 per cent level, the study noted.

It is also anticipated that airlines, in attempting to cope with the ‘challenging environment’ they face, will aim to reduce operating costs and find new ways to boost revenue, meaning an increase in air travel costs to the travelling public.  The study was published as the 2009 Industry Forecast by Advito, which is a consulting group affiliated with BCD Travel.

The travel company’s vice-president, Bob Brindley, said that the expectation is for rates to increase between six and eight per cent in 2009, and that unlike past years, ‘unbundling’ of services will become the norm, with the result being a three to five per cent boost in the overall cost of air travel.

Other related expenses are also on the rise. Car rental rates are expected to increase on average by three to four per cent, mainly with US rental car companies, as they boost rates and add new service fees, according to the Industry Forecast.

Car rental rates in Europe, however, are likely to stay flat, due to a highly-competitive market. Asia Pacific is expected to see the highest rise in rental car rates, globally.

www.advito.com