With these figures on the rise, a significant increase in prices in the international hotel sector is expected, reaching around 3.7%. Specifically, significant price increases are expected in the European Union, although in other regions there will be hardly any noticeable difference.
At the same time, prices are expected to fall in Latin America and the Caribbean.
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Global Hotel Forecast for 2018
Spain
In Spain, hotel prices are expected to rise by over 10% (a figure that, as we have already seen, is much higher than the global average of 3.7% and the average for Western Europe as a whole, which is around 6.3%).
Furthermore, this increase will be even greater at high-end hotels— 10.3 percent, compared with 9.7 percent at mid-range hotels.
Europe, Africa and the Middle East
Prices are expected to rise in Europe, Africa, and the Middle East. They are projected to increase by around 6.6% in Central Europe, 6.3% in Western Europe, and only 0.6% in Africa and the Middle East. In Norway, hotel prices are expected to rise even more than in Spain, reaching 11.9% (due to the country hosting the 2018 FIFA World Cup next year).
Asia
In Asia, prices are expected to rise by 3.5%, although there will be significant variations depending on the region. For example, in Japan , prices may fall by 4.1%, while in New Zealand, they may rise by nearly 10% (9.8%).
Latin America
In Latin America, as we have already mentioned, prices are expected to decline significantly, by an average of 1.2 percent, with a notable drop of 2.7 percent in Argentina and as much as 8.7 percent in Brazil. Meanwhile, Chile and Peru will experience significant price increases of 5.5% and 7.7%, respectively .
North America
Finally, regarding the hotel forecast for North America, the international travel sector is expected to grow by 4% during the 2017–2018 period (this growth will be concentrated primarily in Washington, D.C., and on the West Coast).
And what is causing this rise in prices? Everything seems to point to a clear improvement in the global economy. Overall, virtually all sectors will benefit from this.
Stay Ahead of the Competition
If, after reading our hotel industry forecast for 2018, you’re wondering what you can do to stay ahead of your competition and take advantage of the clear improvement expected in the sector, don’t miss the following tips:
- Review your marketing plan: Make sure you’re optimizing your marketing strategy and staying up to date on all the latest online marketing strategies.
- Technology at the hotel: Customers increasingly value a hotel that stays up to date with technology.
- Customer service: It’s important to prioritize this both at the hotel—through your employees—and online, making sure to respond to users’ online reviews and feedback.
