While the world is quickly moving to cheaper airfares and budget stay options, looks like our country is headed in the opposite direction. For every travel lover, the one big question faced is how to cut down on travel costs. Getting flight tickets for cheap or staying at homestays and cheap hostels are often the only saviours for budgeteers. However, with the increasing number of travellers and the changing economies, instead of prices dipping, everything is all set to get more expensive in the coming year. Sure, each year, due the increase in demand, we are slowly witnessing a rise in rates too but 2019 will most likely see a steep incline.
Strangely, increasing competition has not led to airplane operators reducing fares but rather, the prices are increasing. Also, the increase in oil prices means more cost of fuel which indirectly means hiked prices for flights. Also, the aviation industry is gripped by a sudden wave of high demand with many places unable to cater to the demands and selling out. The trend will be witnessed the world over, affecting all travellers. The rates will spike up even further during peak seasons leading to a much higher demand. While the rates are shooting up, services in aeroplanes are slowly reducing with many going the no-frills way. Passengers are sure the feel the pinch and not in a good way this coming year!
Coming to the hotels, the hotel industry is facing a stiff competition from budget stays like hostels and homestays. Thus, instead of expanding in the budget segment, hotels are further looking to expand in the luxury segment which too has a growing demand from those who do not hesitate to pay for the comforts. Also, while many of the younger travellers are open to experimenting with the stay option, the more senior and the advanced travellers prefer to stay in luxury and have their comforts. Hotels are looking at expanding in that segment.
Taking a look at AirBnb, the homestay format is facing stiff competition from local government bodies that are opposing the rapid expansion. As many locals are going homeless, many regulators are either banning AirBnbs or implementing strict guidelines with increased taxes and fees. This means either picking a hostel or having to option but shelling out more for a decent hotel. It is a catch-22 situation. So regular travellers, and especially those on a budget, brace your wallets. The hikes are coming!