5 out of 10 Singapore executives to spend more on business trips
But they plan to make it worthwhile, as 94% are looking to maximise the sales opportunities while travelling.
In a news release, American Express Global Business Travel reported findings from the 2012 American Express/CFO Research Global Business and Spending Monitor. Almost one third of senior finance executives at some of the largest companies in the region expect to spend more on business travel this year, but just 5% anticipate spending at least 10% more on business travel.
51% of senior finance executives in Singapore polled express that they will spend the same or more on business travel over the next years compared with last year.
As growth rates in key markets within Asia-Pacific slow down, regional businesses are looking to maximise the sales opportunities provided by business travel, with 89% of senior financial executives indicating their plan to spend more or the same on business travel in order to meet with current and prospective customers. Among Singapore financial executives, 94% say the same.
Dr Carl Jones, Head of American Express Advisory Services for the Asia Pacific region explained that continued instability in Europe, slowing growth rates in specific markets within Asia and a slight uplift in the US economy have driven these fare trends.
“Companies in Asia Pacific are still shying away from doing business in Europe so airfares to this region continue to fall. Interestingly, fares to the Americas have increased 2% in the last quarter – the first quarter on quarter increase in the last six months. This is noticeably seen in the Australia to North American routes. It is remarkable to see the dramatic rebound by 12% in demand at the first shoots of economic recovery, as companies look to nurture business growth.”
Demand for travel within the Asian domestic economies remains strong but slowing growth rates and the introduction of low cost carriers in some of the markets has increased domestic fares by just 1 % in the last quarter. Intra-Asia fares have performed similarly and as supply responds to increasing demand for intra-Asia travel, fares have remained flat compared to the last quarter.
Dr Jones says, “As key markets in the region experience the slowing down of growth rates, domestic and intra-Asia air fares are likely to see moderate growth throughout 2012. As a result, companies are continuing to look at smarter ways to manage their travel investment.”