A report (Air Monitor 2019) that was recently issued by American Express Global Business Travel states that according to their research flying in 2019 will remain fairly stable for a variety of factors including, budget carriers, available capacity and the pressure airline companies face with each other due to higher competition will slow the rate of price increases over this year. The fact that many budget carriers are expanding their networks especially on long-haul flights is one of the major factors in restraining an increase in the price of flying as traditional carriers will need to compete for every Euro.
Hence, ticket prices will remain fairly the same this year, albeit airlines facing an increase in costs, especially around operations. No wonder they are cutting legroom in economy. So why not take the opportunity to book a trip or two?
The report also states that the world economy is expected to grow this year although they also issue the statement:
“While current global political and economic uncertainties create a challenging environment for price forecasting, it’s important for buyers to access the information and insights that help them drive better value in their air programs,” says Joakim Johansson, VP of Business Development, American Express GBT
We know many countries are in a shaky position, but when it comes down to traveling, we at myciity just want to give you a heads up so you can plan accordingly. And based on the report by AMEX GBT, 2019 is still a great year to travel, generally speaking.
Why generally speaking?
North America will as a region see the highest increase in fares this year due to the increasing demand for premium economy fares and the services that come with it versus the standard economy. The problem here is that the demand is increasing faster than airlines have a capacity for. This, in turn, is why the Air Monitor 2019 report states they believe prices for tickets in North America and also those traveling from North America to Europe will increase.
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The good news?
The good news for all travelers is that prices towards the Middle East may see a significant decrease throughout 2019 in both economy and business classes! Most likely due to overcapacity at this point. In other words, more seats are available then passengers need.
This could mean, depending on geopolitical situations, that it might be a great year to visit a country in the Middle East, and regardless of what you see on TV, there are a few beautiful gems to visit.
What does GBT look at?
Straight from their desk:
“For the Air Monitor 2019, we have developed a robust, scientific methodology that combines GBT’s own historical flight transaction data with a wide range of critical metrics that drive supply and demand, shaping pricing conditions.”
The report includes and explores a diverse number of factors and variables in order to forecast prices. This includes the examination of five years worth of flight transaction data combined with significant variables such as oil prices, economic estimates (growth vs. stagnation), airline strategies, adoption of premium economy class to China’s massive expansion in the aviation space. Based on this the GBT team is able to analyze and forecast the prices on key routes around the globe.
How does this article fit into the myCiity travel tips space? Well, for one travel news is travel news. We try to consolidate and break down complex information for everyone to enjoy traveling and make it easier. Second, this report is great news in that, if upheld and accurate, could mean that you may be able to go a tad bit further this year with your travels especially if you are looking to go to the middle east!
What do you think about these types of reports? Reporting can always be biased, regardless of what type of data one looks at. Do you think the AMEX GBT Air Monitor report is accurate? Let us know your thoughts below.