Air and hotel fares to rise in Europe and Asia in 2010

The huge slump in demand for hotels and air travel has not ended but both are predicted to increase their rates in most of the world in 2010, according to recently released reports.

Nowhere will travel prices rise more than in China and India, according to the American Express Travel Forecast report, released November 9. In each country air fares will rise at least five percent, with a concomitant rise in mid- and top-range hotel rates of more than four percent.

The rise in hotel prices in Asia is not expected elsewhere, according to American Express, with upper-range hotel prices predicted to drop four and a half percent in North America, two percent in Europe and six percent in Latin America.

But after nearly a year of discounting, air fares seem set to rise worldwide next year.

Europeans should expect higher rates for high-end air fare, according to a report published in October by travel management company BCD. They forecast an increase of three percent for business-class airfares from Europe in 2010.

In the US holiday air fares are on the rise for the same reason they are going up everwhere: airplanes have temporarily retired their larger planes in favor of ones with less seating capacity, thus creating a shortage in supply and increased competition among consumers.

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