By Michael B. Baker<\/p>\n
Although the region is home to some of the priciest cities in the world, corporate travel costs are moderating across much of the Asia\/Pacific region. Growing demand there struggles to keep up with a glut of hotel supply. <\/p>\n
[Please click here to view the digital edition of the 2015 Corporate Travel Index, featuring all per diem listings, downloadable as a pdf.] <\/p>\n
Combined hotel rates and miscellaneous costs for 2014 declined year over year in 15 of the 22 Asia\/Pacific markets measured by the BTN Corporate Travel Index, many of them by double-digit percentages. With the exception of Jakarta (up 7.2 percent)which has seen strong business travel growth in recent years amid a strengthening economy and growing middle classand New Delhi (up 5.5 percent), increases were about 2 percent or less. Overall, the average daily hotel cost in the Asia\/Pacific region in 2014 was $184, down 14.7 percent from the 2013 CTI. <\/p>\n
In its forecast for 2015, BCD Travel consultancy Advito noted that in emerging markets within Asia, \"plentiful new rooms are applying downward pressure on rates and encouraging hotels to seek deals with corporate clients. Companies with well-managed programs can dictate some very attractive deals in the region.\" <\/p>\n
As of January, STR Global reported 2,400 hotels totaling more than 540,000 rooms in planning stages or under construction. About a quarter of those rooms are in China; other countries with big hotel growth in the region include Indonesia, India and Malaysia. <\/p>\n
While not measured by CTI, corporate travel costs also benefit from the proliferation of low-cost carriers across the Asia\/Pacific. During the past 10 years, LCCs have increased their traffic share in the region from nearly nothing to 58 percent, according to Advito. Chinese officials also want to expand LCCs' current 7 percent local market share. Some LCCs, though, including Tigerair in Singapore and Qantas subsidiary Jetstar Asia, have curtailed growth as they struggle to keep pace with overall capacity growth in the region. The three largest U.S. carriers, meanwhile, have added several routes to the Asia\/Pacific region, and Delta Air Lines is especially hard at work trying to develop a new transpacific hub in Seattle. <\/p>\n
Hong Kong, despite some demand hiccups from pro-democracy protests in the second half of the year, maintained its status as the most expensive corporate travel market in the Asia\/Pacific region and is the third-most expensive market among the 100 non-U.S. markets measured in the CTI. Combined hotel rates and miscellaneous costs there increased 0.9 percent year over year, and hotel rates alone are more than 75 percent higher than any other city in the region. <\/p>\n
Average daily meal costs in Hong Kong are among the highest in the world, though still shy of Shanghai, which is cheaper than only inflation-plagued Caracas (see page 22). While Shanghai hotel and miscellaneous costs are average for the region and flat year over year, sky-high food costs propelled the city to fourth-most expensive Asia\/Pacific market, compared with 10th last year. <\/p>\n
In Marriott International's fourth-quarter earnings call, CFO Carl Berquist said his company projects continued strong travel demand in Shanghai this year and improving strength in Hong Kong. <\/p>\n
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2015 Corporate Travel Index: As Asia\/Pacific Demand Falls Short Of Supply, Business Travel Costs Drop<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" By Michael B. Baker Although the region is home to some of the priciest cities in the world, corporate travel costs are moderating across much of the Asia\/Pacific region. Growing demand there struggles to keep up with a glut of hotel supply. Continue reading