April 2010


Travel Tips

Travel_Tips.gif Economic crisis did little to curb cost of air travel: survey
03 March 2010 (TravelWeekly) - HONG KONG – Despite expectations that the global financial crisis would produce significant savings for travellers, results from the fourth quarter 2009 American Express Business Travel Monitor indicate a mixed picture. 

The results reveal that year-on-year, published airfares increased one per cent overall in the Asia Pacific; and comparing the third to the fourth quarter of 2009, there were price increases across Business and Economy classes. 

“When the economic crisis hit, almost immediately the industry felt the consequences as both leisure and corporate travellers scaled back or stopped travelling.  To protect their interests, airlines responded by reducing their fleet inventory and restricting flights and routes.  While the perception may have been that travel was much more affordable during the economic crisis, in many cases published airfares increased,” Jonas Borglin head of advisory services for American Express Business Travel, Japan, Asia Pacific and Australia said, commenting on the findings.
 
Borglin said that as the economy continues to strengthen, prices will likely rise further, making it more important than ever for businesses to gain control of spending.
      
“We have entered a new normal, where we expect that travel volumes and spending patterns will differ from what they were prior to the economic crisis.  However as companies regain their confidence and travel does pick up again, there is a real risk that the cost will be significant for businesses unless they have clear visibility and control of their spending,” Borglin said.

In Hong Kong, published fares were up one percent overall, quarter-over-quarter and five percent year-over-year.  Business Discount airfares continued to rise with a two-percent increment in the last quarter, following a 21-percent year-on-year increase. There was also a bounce back in Economy Full airfares, which increased two percent in the last quarter, following a five-percent year-on-year drop.

In China, published fares were down one percent overall quarter-over-quarter and six percent year-over-year.  There was a strong bounce back in Business Discount airfares, which increased seven percent in the last quarter, following a 20-percent year-on-year reduction.



ASIAN HOTEL RECOVERY CONTINUES IN FEBRUARY
25 March 2010 – Hotels in the Asia/Pacific region experienced increases in all three key performance metrics for February 2010 when reported in U.S. dollars, according to data compiled by STR Global. In year-over-year measurements, the Asia/Pacific region’s occupancy rose 4.7 percent to 60.6 percent, average daily rate increased 16.2 percent to US$131.36, and revenue per available room jumped 21.6 percent to US$79.65.

“The Asia-Pacific region continues on its recovery path and reported 20 percent RevPAR increase for the first two months of the year”, said Elizabeth Randall, managing director of STR Global. “This follows on from a 2 percent RevPAR increase for the 4th quarter 2009, which underlines that the bounce of poor performance last year is taking on strength. Asia-Pacific is currently leading the way in RevPAR improvements”.

Highlights from key market performers for February 2010: (year-over-year comparisons, all currency results in U.S. dollar)
  • Phuket, Thailand, ended the month with the largest occupancy increase, rising 35.9 percent to 85.3 percent, followed by Bangkok, Thailand (+23.1 percent to 70.1 percent), and Bali, Indonesia (20.2 percent to 70.3 percent).
  • Three key markets posted occupancy decreases: Shanghai, China (-10.9 percent to 36.7 percent); Seoul, South Korea (-9.5 percent to 76.6 percent); and Jakarta, Indonesia (-2.5 percent to 62.6 percent).
  • Sydney, Australia, reported the largest ADR increase, jumping 50.2 percent to US$175.86, followed by Brisbane, Australia (+41.0 percent to US$154.88), and Seoul (+40.3 to US$143.90).
  • Beijing experienced the only double-digit ADR decrease, falling 14.0 percent to US$78.53.
  • Four markets posted RevPAR increases of more than 50 percent: Sydney (+70.8 percent to US$164.88); Brisbane (+55.0 percent to US$126.60); Phuket (+53.2 percent to US$119.87); and Bali (+52.0 percent to US$78.49).
  • Shanghai reported the largest RevPAR decrease, falling 18.6 percent to US$36.10, followed by Beijing with an 8.6-percent decrease to US$31.84.

 
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