Asia Pacific travel prices will increase but at a flatter rate in 2012 on a quarter-over-quarter basis, having experienced strong growth rates throughout 2011, according to the annual Global Travel Price Forecast by corporate travel specialist Carlson Wagonlit Travel.
But the cost of Australian hotel rooms and airfares is set to soar. CWT’s forecast revealed that room rates in Australia will climb between 4.1% and 4.9% in the first half of 2012, and between 4.4% and 5.1% in the second half. The projections are well above the Asia Pacific average where rates are expected to fluctuate between a 1.9% decrease and 2.1% increase in the first half of 2012, and between a 0.9% decrease and flat performance in the second half.
The high growth rates are fuelled by high occupancies, the report stated, particularly in Sydney where average hotel occupancy rates are 82.2%, second only to Hong Kong with 82.3%.
APAC’s business hubs currently boast the highest occupancy rates in the world, which will present travellers with continued challenges in securing available rooms.
Aviation prices in the region are also expected to be affected by increasing competition between airlines.
“The airline landscape throughout APAC is populated with a dynamic mix of legacy carriers and a growing group of low-cost carriers that have been applying price pressure that affects overall fares in the region, whether for business or leisure travel,” the report stated.
However, Australian airfares are expected to increase between 3.5% and 6.8% in 2012, again above the regional average of between 3.1% and 3.8%
The latest CWT’s 2012 forecast provides projections for every region of the world, as well as country-level expectations for those markets to which CWT clients most frequently travel. CWT’s analysis confirms that prices in most geographic areas and for most categories of spend are expected to rise in 2012, with the most substantial increases to occur in the booming Latin America region.