Average airfares and hotel rates in the Asia Pacific region are expected to see moderate growth next year, according to a new forecast.
Released today, Carlson Wagonlit Travel’s (CWT) 2013 Travel Price Forecast predicts that airline prices in the Asia Pacific will increase about 2.5% during 2013, while the region’s average hotel rates will climb 3.5%. The slower pace of growth for airfares was put down to the number of low-cost carriers entering the market, which CWT said were “holding pricing down from what would typically be observed in this part of the world”.
In terms of hotel rates, the rate of growth will change significantly from market to market. Singapore is expected to record the strongest growth (+8%), due to “strong travel demand and lagging supply”.
Car rental rates in the Asia Pacific region are expected to see the highest growth of anywhere in the world, rising 5.9%, while meeting and event spending will increase about 6%, despite a 3.8% drop in average group size. CWT predicted that these shifts in the MICE sector will be driven by organisations trying to mitigate rising supplier prices by holding a larger number of smaller meetings with fewer attendees and shorter durations.
“Price increases in 2013 will begin to level off in most regions throughout the world compared to what travel buyers experienced in 2012, as booming economies like Asia Pacific’s begin to normalise,” said Nick Vournakis, CWT’s Senior Vice President of Global Product Marketing. “While slightly higher prices will be the reality again next year as demand for travel outpaces supply in most places, our forecast demonstrates there is still plenty travel buyers can do to watch costs and take care of travellers.”
Elsewhere in the world, Latin American hotel rates are expected to see the strongest growth, climbing 6.3% in 2013, largely due to a lack of supply, although CWT noted this is now easing as more rooms are added for the 2014 World Cup in Brazil. Latin American airfares are expected to climb just 1.3% however, although CWT noted that this would vary across the various markets.
North American airfares are expected to increase by 2.8% during 2013, as tight capacity management ensures that demand outpaces supply, while average daily hotel rates are forecast to rise 3.2%, led by the continent’s top business destinations. Finally in EMEA, airfares are forecast to climb 2.5% in 2013, despite economic concerns, and hotel rates are projected to increase 1.3%.
