Up, up, and away: Airfares in Asia Pac to soar by 3.8% in 2012

But average daily hotel rates in APAC will range from a 1.9% decrease to a 2.1% increase in the first half of 2012.

Carlson Wagonlit Travel released its 2012 Travel Price Forecast, which projects supplier prices for airlines, hotels, ground transportation providers, and meetings and events (M&E) spend.

According to the release, 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.

“Travel buyers in most parts of the world are facing tough negotiations as the landscape increases in complexity. At the same time, economic uncertainty continues in some parts of the world and has resurfaced in others, prompting increasing questions on exactly what 2012 holds in store for organizations and, by extension, for business travel,” said Nick Vournakis, vice president, CWT Solutions Group. “CWT will keep a close eye on the evolving situation with supplier pricing, and will advise our clients accordingly on how to navigate the challenges and opportunities they’represented with as 2011 concludes and 2012 begins.”

Asia Pacific continues to flourish; prices to increase

The Asia Pacific (APAC) market is thriving, leading the way in many economic indicators and correspondingly, in business travel volumes. However, APAC travel prices will be flatter in 2012 on a quarter-over-quarter basis, given that the region was not as affected by the economic downturn as other parts of the world, and has already been experiencing strong growth rates throughout 2011.

• CWT forecasts airline pricing in APAC to increase by 3.1-3.8% in 2012 as a dynamic mix of legacy airlines and a growing group of low-cost carriers compete for travelers, holding down fares in the region.

• Average daily hotel rates in APAC will range from a 1.9% decrease to a 2.1% increase in the first half of 2012, and a 0.9 decrease to remaining flat for the second half of the year. APAC’s business hubs currently boast the highest occupancy rates in the world, which will present travelers with continued challenges in securing available rooms. Even so, strong supply growth across APAC will keep overall ADR growth in the region more modest than one might expect.

• Car rental rates in APAC will remain relatively flat, ranging from a decrease of 1.7 to an increase of 3.9% in 2012 in Australia and New Zealand, two of the primary rental car markets in the region.

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Tags: Carlson Wagonlit Travel 2012 Travel Price Forecast, Asia Pac travel market