A new report analysing corporate travel trends has found that improving sentiment in the Asia-Pacific region is having a mixed impact on hotel rates and air ticket prices. The Egencia 2011 Corporate Global Travel Benchmarking Study, evaluated the current business travel landscape and supply environment for air and hotel. Focusing on top domestic and international business destinations in Europe, North America and Asia-Pacific, Egencia analysed industry trends, supplier data and capacity implications in Q1 2011. For Asia-Pacific points-of-sale, ATPs (Average Ticket Prices) decreased 2% Yoyo for intra-APAC destinations and 1% in North American destinations.”Decreased ATPs can be attributed to increased competition in the local markets, increased capacity on majority of routes, and the domestic and international pricing battle for Australia,” the report stated.”Increased ATPs can be attributed to the mixed capacity environment for APAC destinations, increased fuel cost, potential of joint-ventures on trans-Pacific routes, and increased demand into Indiaand China.”Despite this average daily hotel rates (ADRs) rose significantly in all major regional destinations, with Hong Kong topping the list with 25 percent increase in Q1. Singapore (16%), Beijing (9%), Shanghai and Sydney (both 8%) rounded out the top five. The only major destination to report a decline in ADRs was Tokyo, with -1%.”In the first quarter of 2011, hotel ADRs increased in most major business destinations, reversing the downward trends from the previous year,” the report stated. “The increase in ADRs can be attributed to the return of corporate demand, reduced scale of new supply, improved occupancy, and higher air capacity.”According to respondents of Egencia’s survey of nearly 350 travel buyers, 54 percent of buyers expect their travel volumes to increase during the remainder of 2011, with 17 percent planning to change their travel policies during the year. Additionally, 38 percent of travel buyers said they will negotiate more this year than they did in 2010.
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