Synopsis: Geopolitical uncertainty in the world is affecting the different sectors including the travel industry. Recently CWT has warned about the possible travel price hike amid the conflict between Taiwan and China.
While the rate of inflation in travel costs may not be as high as it was in 2022, many factors that affect prices will still be outside the control of travel managers.
In the latest news of China and Taiwan, a recent study by the Global Business Travel Association and corporate travel broker CWT, pricing swings brought on by geopolitical events could become even more pronounced in the coming year.
Prior to Russia’s invasion of Ukraine, which led to rises in jet fuel prices that were passed on to customers, the pair predicted in November 2021 that air costs would climb by 3.4 percent in 2022.
Richard Johnson, senior director of CWT Solutions Group said “As well as the war in Ukraine, you need to keep an eye on what’s happening in Taiwan with China.”
He further added, “Drawing parallels with what’s happening in Ukraine and Russia at the moment if there were to be an invasion of Taiwan, that could potentially impact demand for inbound and outbound business travel to and from China.”
According to the Global Business Travel Association, airfares are expected to increase by 8.4% in 2023.
In contrast, hotel rates are predicted to increase 18.5 percent in 2022, up to $147 per night, a significant change from the annual report’s initial 13 percent projection. The latest news about the conflict between China and Taiwan revealed a new development in the travel industry.