Airfares in India are likely to increase by around 8.7 per cent next year amid increasing domestic demand, says a report. The Global Travel Forecast report has been prepared by the Global Business Travel Association and Carlson Wagonlit Travel. According to the report, India is projected to see an airfare increase of 8.7 per cent in 2018, the highest for any country in the Asia Pacific region.
India is one of the fastest growing aviation markets in the world and has been witnessing double-digit growth for more than two years. Domestic demand is increasing, particularly in China and India, putting additional pricing pressure on key markets in both, the report said.
“India remains the healthiest of the major emerging Asia Pacific markets with robust growth anticipated given pro- market economic reforms. “Last fall, India’s government surprised many, cancelling 86 per cent of its circulating currency in an effort to rid its economy of black money and encourage a move towards a cashless, virtual payment society,” it added.