Airfares and hotel prices on the rise

Airfare prices are expected to increase. Photo / Getty Images

Corporate travel specialist Carlson Wagonlit Travel forecasts modest airfare growth from and around New Zealand next year.

Spokesman Mike Orchard said airfare prices were expected to increase by 0.4 per cent, below the global forecast of 2.2 per cent.

"We're not seeing significant growth in the airfare market across New Zealand. There's a little more capacity coming into the marketplace and there's still a lot of domestic competition," he said.

"Oil prices are pretty stable at the moment and we expect them to stay stable for the next 18 months, but if something happens in the world such as the Ukraine crisis blowing up that could change."

World hotel prices are forecast to increase 2.6 per cent, but in New Zealand this is projected to be 2.8 per cent.

Orchard said Auckland was driving higher rates in New Zealand with rises of 4 to 5 per cent.

"For hoteliers it's a bit more positive than for the airlines. We're a bit [more] confident about what's happening in Auckland than other parts of the market."

Rental car prices are expected to grow by 1 per cent in New Zealand, above the global average. "Economy prices will grow at a faster pace than the prices of full-size rentals," he said. "There's some good saving opportunities out there for corporate clients."