Asia-Pacific to see rise in airfare and hotel rates in 2010: report

Mumbai, Nov 04 : The quick revival of Asia-Pacific region from last year's global economic meltdown will trigger a rise in airfares and rates of hotels, the highest globally, in 2010, a report released today by the American Express Global Business Travel Forecast said.

The region, which had experienced a seven per cent reduction in business travel in the Asia Pacific region forced travel suppliers to reduce prices and rethink strategies in 2009. But in 2010, a turnaround led by emergence and growth of green shoots in the economies are expected to help the return travellers to the road.

The report said rates were expected to rise in the Asia-Pacific region against other parts of the world due to having escaped some of the protracted recession experienced in North American and European markets, and the strong corporate travel spending in emerging nations such as China and India.

''In 2009, the weakened economy contributed to a seven per cent 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,'' observed American Express Business Travel, Japan, Asia Pacific and Australia, Advisory Services, Head, Jonas Borglin.

Airfares in the short haul segment (economy class) in the Asia-Pacific region are expected to rise by three-eight per cent against global prediction of zero-five percent. Figures for Australia are one-six percent; China and India by three-eight per cent. In the International/Long Haul segment expected rise in airfares between Asia-Pacific region and global are equal at 1.6 percent.

In the mid-range hotel segment, Asia -Pacific region is expected to see rates go up in 2010 by one-six percent, while global rates may range from minus three-(+) two percent. In the upper-range segment, increase in rates for Asia-Pacific is expected to be one-six percent against minus four-(+)four percent in the global arena.

''The impact of the economic slowdown has driven many companies to finally get strategic about their business travel management. There is an increasing interest among CFOs to manage T&E (Travel & Entertainment)- their second largest controllable expense - in a more strategic manner. We believe this trend will continue even in 2010 and calculating the return on travel investment will be top of mind for corporates,'' stated American Express Business Travel, India Head, Manoj Chako.

--UNI

(c) 2009 Published with permission from United News of India.
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