ASIA - Planners can expect rising meetings costs in 2020 after business travel management company BCD Travel forecasted a global increase in hotel rates and airfares for the year ahead.
According to BCD Travel's newly released 2020 Industry Forecast, the increase by 1% to 3% in global hotel prices is being driven by solid demand, keeping occupancy high in most regions. Rate increases will be higher in Asia-particularly Japan, host of the 2020 Summer Olympics, and Vietnam, where both leisure and business travel demand is strong.
Meanwhile, airlines will raise average fares in most markets to help offset higher fuel and labour costs. Globally, average ticket prices are expected to rise between 1% and 2% in 2020.
Other findings of the annual report also state that strong demand in Europe will push meetings costs up 3% to 4%, while meetings costs will also increase sharply in Australia's Sydney and New Zealand's Auckland.
It also predicted a 4.5% growth in the Asian market
"As we approach 2020, corporate travel buyers face the prospect of a slowdown in advanced economies, while the performance of emerging markets improves," said BCD Travel's director of research and intelligence, Mike Eggleton.
"We believe this will restore the traditional growth gap that had recently narrowed between mature and emerging markets."
Globally, average air ticket prices for intercontinental travel in both business and economy classes are expected to rise 1% in 2020; while economy fares for regional flights are expected to rise by 1%, and business class fares will increase by 2%.
Average ticket price increases will range 1% to 3% across the regions. The sharpest increase, at 3%, will be for flights within Asia and Latin America as demand recovers, BCD Travel said.
Hotel demand will boost occupancy rates in 2020, resulting in average daily rates (ADRs) increasing by 1% to 3%. Asia will see hotel rate increases averaging 2% to 4% as demand outpaces supply.
The full report is available here: www.bcdtravel.com/industry-forecast-2020.