TRAVEL prices will increase moderately in 2014 in tandem with the limited economic growth expected across the globe, but airfares in Singapore are expected to witness some of the biggest jumps in airfare prices within Asia-Pacific.
According to Carlson Wagonlit Travel’s (CWT) 2014 Travel Price Forecast, airfares in Singapore may surge by as much as 5.1 per cent. On the other hand, fewer business meetings and events in Singapore are likely to keep the Lion City’s hotel rates flat, with growth between 0.9 and 3.7 per cent.
Airlines will continue to align themselves through codeshare agreements, alliances or mergers even as more LCCs come on stream next year. For the overall Asia-Pacific region, CWT’s report predicts that airfares would soar by four per cent with prices varying by country.
Middle-class demand in China is likely to drive demand for leisure travel while business-travel demand remains persistent. These twin engines of growth could fuel a rise in airfares by almost seven per cent next year.
Meanwhile, hotels in key business destinations are expected to operate near capacity in the coming year. CWT projects that hotels in Asia-Pacific’s largest cities, which have enjoyed the highest occupancy rates in the world for several years, will continue to do so in 2014. Prices are predicted to leap by up to 4.9 per cent.
On the MICE front, Asia-Pacific’s burgeoning meetings and events industry is likely to witness growth in group size by three to five per cent, while daily costs per attendee could jump four to five per cent.
This is in line with CWT’s forecast that meetings and events providers will raise prices across the world, leading to across-the-board rises in daily attendee costs.
