Asian corporate travel to be more expensive in 2012

Asian corporate travel to be more expensive in 2012

Hotel rates and airfares in top corporate travel destinations in Asia Pacific will increase in 2012, according to Egencia, the corporate travel arm of Expedia.

In its ‘2012 Corporate Travel Forecast and Hotel Negotiability Index’, released yesterday, Egencia revealed that airline ticket prices (ATP) in Asia Pacific will increase 6% next year – more than the 4% increases forecast for both Europe and North America.
Hotels in Asia Pacific’s corporate markets will also see the most significant gains in terms of average daily rate (ADR), rising 7% in 2012, compared to 5% in North America and just 2% in Europe.

“As of today, we haven’t seen business travel slowing down for our clients. During these uncertain economic times, companies remain cautious but, so far, haven’t shown willingness to reduce overall travel spend. That being said, they are ready to take action if needed,” said Christophe Peymirat, Egencia’s Vice President of Global Marketing. “The objective of our annual forecast is to provide companies with insights that can be leveraged to positively influence their 2012 planning and negotiations. So they can effectively save in the coming year.”

ATPs are likely to increase in almost every studied Asia Pacific destination, according to Egencia. The highest rates of airfare growth are expected in Jakarta (+15%), Mumbai (+13%) and Bangkok (+11%). Seoul (-4%) was the only market forecast to experience a decline in airfares.

In terms of ADR, Egencia noted that limited supply in the region is impacting the flexibility of negotiating corporate rates. The ability to negotiate will be especially weak in Hong Kong, where rates are expected to jump 15% in 2012, as well as Shanghai and Singapore (both +11%). Hotel rates in Manila (-4%), Delhi (-1%) and Mumbai (-1%) are likely to decline, offering good opportunities for corporate travel buyers.

Mark Elliott
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Mark Elliott
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