Posted on August 1, 2013
Airfares and hotel rates in the Asia Pacific region are likely to increase in 2014, according to the latest forecast from Carlson Wagonlit Travel (CWT).
In its 2014 Travel Price Forecast, the corporate travel company revealed that Asia Pacific could see a 4% rise in airfares next year, among the highest of any global region, while hotel rates are expected to climb 4.9%.
By contrast, airfares and hotel rates in North America are projected to increase 2.6% and 3.9% respectively, while in the EMEA region airfares are expected to increase 3.1%, while hotel rate predictions range from a 1.6% decline to a 2.5% increase.
“While we expect moderate price increases worldwide next year, there are some notable exceptions. Prices in Europe are likely to decrease because of the continued economic uncertainty in the region, while emerging markets… could experience far higher increases in 2014 due to high projected GDP growth and significant inflationary increases,” said Christophe Renard, vice president of the CWT Solutions Group.
CWT said that China’s growing middle class will drive significant demand for leisure travel in 2014, putting pressure on capacity. Demand for business travel is forecast to “remain persistent”. This, according to CWT, could result in Chinese airfares jumping nearly 7% next year.
Singapore is also expected to see strong airfare growth, increasing approximately 5.1%. The city state’s hotel rates however, are expected to remain relatively flat, rising between 0.9-3.7% due to reduced demand.
In terms of ground transportation, car rental rates in Asia Pacific could increase as much as 5.5% in 2014, while CWT predicted a rise in corporate demand for China’s high-speed rail network. In the MICE sector, the cost of meetings in Asia is expected to rise by 4-5% per delegate.