Corporate travel in Asia Pacific proves resilient with the region attaining the largest share of business travel spend ahead of North America and Western Europe, while the MICE (Meetings, incentives, conferences and exhibitions) industry helps to hike up room rates.
This is despite global economic recession, geopolitical uncertainty surrounding terrorism risks, Brexit and the 2016 US elections, said end-to-end hotel solutions provider HRS in the Hotel Price Radar Q2 2016 report.
Findings showed that Tokyo, Sydney and Singapore have the highest average room rates per night at SGD280 (USD208), SGD$244, and SGD$254 respectively.
APAC hotels recorded mixed results in rate development compared to a year ago. Tokyo, Singapore, Sydney, Jakarta, Bengaluru and Bangkok saw increases, while Dubai, Shanghai and Kuala Lumpur had declines. The largest spike was in Bengaluru with a rate development increase of +22.9%.
Developments in MICE industry
According to the report, while the majority of Asia Pacific cities had a fall in the average room rate per night compared to Q1 2016, Jakarta, Bangkok and Kuala Lumpur were exceptions to this trend. This is largely attributed to positive movements in the MICE industry over the past quarter.
Kuala Lumpur is aggressively promoting MICE through partnerships with local and international players. The Kuala Lumpur Convention Centre strengthened its ties with the International Association of Professional Congress Organisers (IAPCO), Kuala Lumpur Tourism Bureau (KLTB), InvestKL and the Malaysian Association of Convention and Exhibition Organisers and Suppliers (MACEOS).
Kuala Lumpur is going all out to promote MICE. (Image credit: Noraznen-Azit/iStock)
Hotels and tour operators have also taken interest in packaging products and services complementary to MICE development efforts.
HRS said Jakarta also saw an increase in per-night room rate over Q1’s figures. Business travel to the city is likely to improve as the Indonesia Convention and Exhibition Bureau (INACEB), established in late March, strengthens Indonesia’s MICE facilities.
“The top business travel destinations in the region have remained broadly consistent for the past few quarters now,” said Kimi Jiang, vice president for HRS in Asia Pacific.
“An intensely competitive MICE climate will dictate further growth in the business travel sector, with countries like Kuala Lumpur and Jakarta developing aggressive strategies to grow their MICE industry.”
He added that with geopolitical and economic risks impacting business travel heading into the rest of the year travel managers “will need to retain an additional degree of flexibility and agility as they navigate through an ever-changing global landscape – more than ever before.”
• Featured image credit (business travellers): Rawpixel Ltd/iStock
