Cost of travel rising fastest in East Coast US but Europe not far behind – Business Travel News Europe

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Barcelona, Berlin and Paris have seen the steepest rises in average hotel rates in Europe so far this year, while flights between London and Berlin have seen the sharpest climb in average fares.

Analysis by travel management company TravelPerk of its top 15 destination cities and 15 most-booked flight and rail routes reveals the extent of travel price inflation between Q1 and Q2 this year, with costs rising fastest on the US East Coast.

In Europe, average hotel rates leapt 48 per cent in Barcelona, to €153, and by 38 per cent in both Berlin and Paris, to €130 and €198 respectively.

Average daily rates in TravelPerk’s most-booked destinations globally, London and Amsterdam, increased 22 per cent to €200 and 36 per cent to €184 respectively.

But the steepest increase in hotel rates were recorded in Chicago, up 77 per cent (to €277) in Q2 compared to Q1, followed by Boston, up 63 per cent (to €346), and New York, up 49 per cent (to €309).

Of its top 15 cities, a single-digit increase was posted only by Singapore, where rates were up four per cent (to €175).

The steepest increase in average air fares, meanwhile, was seen among outbound bookings from New York to San Francisco (up 96 per cent to €685), from New York to Paris (up 62 per cent to €1,753), and from Berlin to London (up 43 per cent to €280).

Fares on TravelPerk’s top three routes increased by 35 per cent from London to New York (to €2,126), by eight per cent in the opposite direction (to €1,602), and by 23 per cent from Singapore to London (to €2,393).

The cost of rail travel also increased significantly with fares on its top five routes all rising by 25 per cent or more between Q1 and Q2. Fares from Bordeaux to Paris were up 35 per cent, Berlin to Munich fares were up 31 per cent, Paris to Bordeaux by 30 per cent, and fares for both London to Paris and Hamburg to Paris were up by 25 per cent.

Overall, however, rail prices have seen lower inflation than flights, and TravelPerk notes that rail bookings grew by 15 per cent more than flight bookings from Q1 to Q2.

“Our data clearly shows that, although Europe has seen major rises across the board, the most dramatic increases in the cost of travel in the first half of 2022 have been in the US,” said JC Taunay-Bucalo, TravelPerk chief revenue officer.

“These rises are due to a number of external factors that all parts of the travel industry are grappling with, including increased fuel costs, a shortage of labour and disruptions to the global economy. However, it is also true that providers are seeing a surge in demand and are looking to make up for the revenue lost during the pandemic.”

He added: “We do expect the cost increases we are seeing to continue for the remainder of this year.” 

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