DESPITE levelling global airfare prices, increased business travel demand is driving significant airfare increases in six hotspots, among which four are in Asia-Pacific.
These findings come from the 2016 Global Travel Price Outlook, a study from the GBTA Foundation, the education and research arm of the Global Business Travel Association (GBTA), and travel management company Carlson Wagonlit Travel (CWT).
While airline fees are set to be nearly flat on a global basis due to significantly lower energy prices, steady increases in capacity and stable demand, Singapore, India, China and Australia are seeing a projected growth in price.
Singapore is projected to see a gain of three per cent, the highest in Asia-Pacific, due to lower energy prices and a less restrictive monetary policy. Following closely behind would be China, Australia and India with 2.8 per cent, 2.7 per cent and 2.6 per cent increases respectively.
Other hotspots projected to see price increases are Colombia and Mexico.
Asia-Pacific will also see hotel prices rise by three per cent — led by Singapore, Japan and Australia.
Meanwhile, Asia-Pacific is expected see a five per cent increase in cost per attendee per day and an 11 per cent increase in group size, driven by strong demand from China and India.
