American Express have released the annual Global Business Travel Forecast 2015 and the findings suggest Asia Pacific’s subdued economic growth is likely to impact the business travel market in 2015.
Australia is expected to experience modest economic growth next year however decelerating growth in China and combined with a slowdown in the resources sector.
Domestic airfare prices are predicted to be flat to slightly higher, and international fares are likely to experience small declines in 2015 in Australia and Asia Pacific.
This is a different position from the 2014 Forecast, which saw Asia Pacific set to record the highest rate increases, compared with North America and Europe.
Hotel rates across Asia Pacific are expected to be mixed throughout 2015, with capacity remaining a key driver of room rate prices across countries.
Hotel occupancy in Australia is high, especially in major cities such as Sydney and Melbourne, which sees many of their hotels fully booked on weekdays.
The report states that “savings across hotels in some parts of Asia can be challenging due to ongoing high occupancy rates, however businesses that broaden the range of hotel properties within their policy can reduce costs.”
This, combined with few new properties coming on the market, could lead to room rate increases of up to 5 percent, leaving little negotiation space for travel managers.