|Modest hike in air, hotel prices propels business travel in Asia in 2013.|
Tuesday, 27th November 2012
Source : Web in Travel
According to American Express Global Business Travel in its Global Business Travel Forecast 2013, projected increases in business travel pricing in select markets in Asia, Latin America and Eastern Europe indicate business travellers will likely continue to travel in these regions to pursue business opportunities next year.
However, global economic uncertainty – particularly due to the fiscal crisis in Europe and deceleration of growth in China – is expected to curtail demand and keep rates in mature markets, including China, relatively flat.
Taken together, American Express Global Business Travel forecasts prices globally to increase only modestly.
“The performance of business travel across Asia Pacific in 2013 will vary country to country but there are specific markets that will likely see moderate levels of growth including India, Australia and Singapore,” said Dr Carl Jones, head of American Express Advisory Services for the Asia Pacific region.
“Our Forecast helps companies understand where in the world and in which categories prices would likely increase and by how much, so they can make smart and informed decisions about how their investment in business travel is best allocated.".
Asia-Pacific (APAC) airfare projections
Market performance will vary across the region in 2013, with countries like India, Australia and Singapore seeing moderate increases in airfare.
Airfares in Singapore are likely to experience moderate change of -1% to 2% for Intra-APAC (economy) and 1%-4% for long haul (economy).
- APAC short haul (economy): -1% to 4%
- APAC long haul (economy): -1% to 4%
- APAC Intra-APAC (economy): -1% to 4%
- APAC short haul (business): 0 to 4%
- APAC Long Haul (business): 0 to 4%
- APAC Intra-APAC (business): 0 to 4%
Dr Jones said the continued rise of low-cost carriers’ capacity is acting to limit price growth for intra-Asia. This trend is expected to continue throughout 2013. For long haul economy, prices will continue to rise in line with inflation with capacity balanced by continued demand.