Business travel growth drives up airfares in Asia Pacific “hotpots”
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Rising demand from business travellers will drive up airfares in four major Asia Pacific countries next year, a new study has found.
According to the ‘2016 Global Travel Price Outlook’, published by Carlson Wagonlit Travel (CWT) and the Global Business Travel Association’s (GBTA), India, China, Singapore and Australia are four global “hot spots” where corporate travel demand is leading to significant air price increases. Colombia and Mexico were also identified as seeing similar trends.
“Business travel is a leading indicator of global economic activity,” said Joseph Bates, vice president of research at the GBTA Foundation. “The top-line pricing outlook for air, hotel and ground in 2016 is surprisingly stable. But when you dig deeper, the data reveal global hot spots where demand is driving air travel price increases. For 2016, India, China, Colombia, Mexico, Singapore and Australia are projected to top the list.”
The GBTA report forecasts that air fares are expected to be nearly flat on a global basis in 2016, compared to 2015, due to “steady increases in capacity and stable demand”.
Asia Pacific is expected to experience a 1.2% rise in fares, with North America rising 0.5% and Europe, Middle East & Africa (EMEA) up 0.4%.
But airfares in Singapore are expected to rise 3%, driven by lower energy prices and a less restrictive monetary policy that will fuel demand. China is forecast to see a 2.8% increase, bolstered by domestic demand, while Australia will increase 2.7%, driven by improving business conditions in the country. Asia’s final “hotspot, India is forecast to see a 2.6% rise in airfares next year, due to rising business and consumer confidence.
In terms of hotels, the GBTA said that global rates are expected to rise in 2016, as it reports that “demand is overtaking supply in every major global region”.
Asia Pacific will see hotel prices rise by 3%, led by Singapore, Japan and Australia. North America will experience a 4.3% rise in hotel rates next year, with EMEA region growing 1.8%.
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