Air fare, hotel tariffs expected to increase in 2011: Survey

Mumbai, Feb 27 (PTI) Domestic airline fares are expectedto go up by 12-14 per cent, while hotel tariffs would go up inthe range of 5-6 per cent in 2011, according to a survey.

"On an average, the domestic fares are likely to go up by12�14 per cent. However, this increase will spread through thequarters," according to a survey ''Corporate Travel-Trends,Outlook and Opportunities- 2011'' released by Thomas Cook here.

On the domestic airlines front, load factors averagingaround 80 per cent and stable demand forecast, robust yieldmanagement and higher anticipation of revenues from keydomestic airlines will drive fares north-wards, Thomas CookCorporate Travel Forecast for 2011 said.

There will be an increase in premium traffic projected byairlines on the back of strong domestic consumption demand.

Constrained capacity at Indian airports during prime timeslots will result in Corporate India buying. The increasingcrude oil prices can also result in increase of taxes, itsaid.

On the international air front, North American sectorsare going to witness maximum fare hikes and on a whole,corporate can expect these fares to go northward between 7�9per cent on a leveraged spend of predominantly US/Europe andrest of the world, it said.

The domestic hotel tariffs would also go up in the rangeof 5�6 per cent and on international front; it may go up by4-5 per cent for a well negotiated hotel deal. However,corporate volumes and loyalty with relationships will drivethe savings the corporation can achieve, the survey said.

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