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UK air fares to fall 3 per cent says American Express

Global Business Travel Forecast 2017 also predicts hotel prices to flatline in 'subdued' year of growth

Pictured: The Global Business Travel Forecast 2017 predicts short-haul economy to fall - 2 per cent and long-haul business to fall -3 per cent

Air fares for UK business travellers have been predicted to fall as much as -3 per cent, as American Express Global Business Travel (GBT) predicts "subdued" growth for the global business travel industry 2017.

In it's Global Business Travel Forecast 2017, American Express GBT says increasing competition among low-cost carriers, along with low fuel prices, will drive down costs for outbound travel. It predicts short-haul economy rates to fall by -2 per cent and long-haul business prices to drop -3 per cent.

The report said: "In Europe, airlines continue to face significant headwinds in the form of lacklustre economic performance, security concerns, long-haul pressure from Gulf carriers and the growing presence of low-cost carriers on short-haul routes. With low-cost carriers looking to continue their aggressive expansion efforts in 2017, airfares will stay level with 2016."

UK hotel prices are expected to remain neutral in 2017, rising just 0.2 per cent. The report said while political and economic uncertainties were flattening demand, a lack of new supply would help sustain mild rate increases.

It added: "Despite speculation that the UK would see prices rise on higher demand from value-seeking tourists and domestic vacationers forced to stay at home, rates are staying level and should remain so through 2017."

Hotel rates in the Americas will also see subdued changes to hotel rates, with hotel prices rising 3.6 per cent in the United States, while Canadian rates are expected to fall -1.2 per cent. Argentina will see the biggest shift in prices, with the report predicting hotel prices to rise 15.5 per cent.

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