The 2015 Global Travel Price Outlook jointly released by Carlson Wagonlit Travel (CWT) and GBTA Foundation, the education and research arm of the Global Business Travel Association (GBTA), indicates an upward pressure on rates next year particularly in high-demand travel markets.
According to the study, the rate increase is due to demand from emerging markets such as China, India and Brazil, and improved economic growth in advanced economies, combined with limited advances in travel supply.
Joseph Bates, GBTA Foundation vice president of research, said, “The study reveals that travel managers expect price increases next year across the board on travel categories including airfares, hotel room rates and rental car rates.
“Risks to the forecast including the escalating Ukrainian crisis; declining European inflation; burgeoning debt in China and oil price shocks could potentially have a negative influence on travel demand and pricing however, so travel managers are advised to consider contingencies for these risks in their planning.”
Key findings for the Asia Pacific (APAC) region for 2015 include (see infographic below for details):
- APAC is expected to see the smallest increases in airfares around the world (0.5%) in 2015 compared to the global average of 2.2%.
Actual increases in airfares for 2014 were lower than the forecast given low cost carriers have added a lot of capacity, and are increasingly targeting the corporate travel market. LCCs now account for close to 26% of total capacity in APAC.
- India is expected to see the strongest air price growth in the Asian region at 4.4% next year, driven by recent elections and prospects for market reforms that could lead to greater levels of business activity and a higher volume of business travel. Air prices, however, will remain relatively stable in Singapore (0.5%), China (0.8%), and Hong Kong (0.9%).
- Hotel prices in APAC are expected to grow 2.7%, a moderate rate compared to the rest of the world.
- India is expected to experience hotel price growth in 2015 for the first time in several years at 4.4%, driven by higher levels of business confidence following this year’s elections. In Hong Kong will see a 4.3% increase in hotel prices, Singapore a moderate 1.4%, while China’s will remain stable at 0.1%.
Click here to view the report in full.
