Long-haul air fares set to rise
Air fares from the UK are forecast to rise in 2015, driven by constrained capacity and higher demand.
According to latest American Express Global Business Travel Forecast, long-haul flight prices from the UK will rebound in line with the economic recovery.
"Airline capacity in the UK will remain constrained as airlines manage inventory as closely as possible, which will continue to drive up prices," said the travel management company.
"Larger airlines are scheduling international travel from the north through Heathrow more intelligently, allowing for more efficient international trips, such as Manchester – Shanghai and Scotland – South Africa. Airlines expect that growth in long-haul travel will be a result of optimising route timings, price and aircraft type."
But the report predicts that short-haul prices will remain stable, or even decrease slightly, as low-cost carriers keep demand in check by maintaining current capacity levels.
Meanwhile, while hotel rates are expected to rise moderately in 2015, with the strongest increases expected in London, followed by Edinburgh, Leeds and Cardiff.
"These locations are expected to become stronger and more consistent, with steady demand and new properties being built, particularly in the south of London," said the report.
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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