Asia Pacific to see largest rise in travel rates – AMEX
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Singapore, 6 October 2009 - According to the American Express Global Business Travel Forecast released in the region today, the cost of travel throughout the Asia Pacific will experience the largest increase globally in 2010. Fueling the prediction is expectations of increases in both airfares and hotel rates on the back of positive trends in the regional economy and strong growth predictions in some Asia Pacific countries.
The Forecast was produced by eXpert insights, the newly created research practice of American Express Business Travel’s Global Advisory Services. The annual Forecast is the most comprehensive report available in the industry, outlining the pricing trends that are expected to impact the cost of travel in the coming year as well as pricing predictions by region and class of service.
Asia Pacific - Air/Hotel Forecast and Trends
Commenting on the findings, Jonas Borglin Head of Advisory Services for American Express Business Travel, Japan, Asia Pacific and Australia, says, “In 2009, the weakened economy contributed to a seven percent reduction in business travel in the Asia Pacific region forcing travel suppliers to reduce prices and rethink strategies. Next year we expect a turnaround as green shoots in the economy continue to emerge and companies return travellers to the road.”
“The Forecast indicates that 2010 airfares and hotel rates are expected to rise across the Asia Pacific region. We predict hotel rates will rise more than other parts of the world as our region has escaped some of the protracted recession experienced in North America and Europe. Also, corporate travel spending has been comparatively strong thanks to emerging nations such as China and India.”
Global Business Travel Forecast
Looking to the global Forecast, pent up trip demand coupled with supply base changes are likely to cause rates to slightly increase in most travel categories by the end of 2010. Business class airfares in particular are expected to increase in line with reduced capacity and on-going business demand for international travel.
A prolonged period of weak demand in the travel industry depressed prices across travel categories in 2009, most notably in hotel, which as an industry can not reduce capacity as well as airlines and car rental companies. Following this weakened demand in 2009, American Express Business Travel expects a pent up need for travel and meetings to be unleashed in early 2010. Fuel prices, along with sustained signs of a restarting economy, could also generate slight up-ticks in travel category prices worldwide, particularly in Asia Pacific next year.
“The 2010 Forecast clearly underscores that the complexity of managing business travel and understanding the underlying dynamics of the industry and supply base only becomes more challenging as economic conditions change and business opportunity is global,” said Christa Degnan Manning, director, eXpert insights research for American Express Business Travel Global Advisory Services. “Over the next year we will be monitoring the market closely with pricing benchmarks identifying cost-savings best practices, and supplying on-going market analysis to support companies in paying the optimal price for travel based on market conditions and desired business outcomes. A return on investment approach in travel is more important now than ever before as the economic situation changes worldwide.”
The Global Business Travel Forecast 2010 is available for purchase. To obtain a copy of the Forecast or subscribe to eXpert insights, please email advisoryservices@aexp.com or visit www.businesstravelconneXion.com.
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