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Higher hotel and airfare costs in Asia

Higher hotel and airfare costs in Asia

Q2-2023 is divided into two halves, according to the most recent Global Trends Report from FCM Consulting. While the rest of the globe reaches a plateau in one scenario, the Northern Hemisphere pushes travel demand over the summer. Though there is still disruption from extreme weather and personnel shortages at airports, the number of business trips rises and travel patterns stabilize.

According to Gaurav Luthra, Managing Director of FCM India, “although airfares and hotel room rates remained high in Asia, businesses can still stretch their travel budget with the guidance from their travel management consultants, by planning ahead, as well as utilizing technology.”

Domestic Flight Prices Have Increased

Most major markets, including China, have strong domestic air travel demand that is only 1% lower than in 2019. India has experienced an increase of 13%, while Japan has seen a 20% increase. This rise is the result of rivalry between airlines, staffing levels, the state of the economy, and supply and demand.

Forecast for airline seat return of 93%

The number of domestic seats available globally has surpassed 2019 volumes and is anticipated to increase by an additional 4.1% over 2019 volumes. In terms of domestic seats, the Asia Pacific area has witnessed a growth of 6.9%, while its international seat count is still 22.5% lower.

A 93% increase in seats was predicted across the 20 largest airlines in 2023 compared to 2019. In terms of market share, China Eastern leads with 103%, followed by LATAM and United Airlines with 102%, American Airlines with 99%, and Qantas and Qatar Airways with 98%.

China Eastern Airlines has the highest projection in Asia (103%) followed by Singapore Airlines (97%) and Cathay Pacific (72%).

Business Class Fares in Asia Have Increased By 19%

The Middle East experienced a business class fare increase of 29%, followed by Australia and New Zealand (27%), and Asia (19%).

Shanghai Hongqiao International Airport to Singapore flights increased by 37%, Mumbai to London flights increased by 20%, and Shanghai Pudong International Airport to Singapore flights increased by 20%.

Asia’s demand for rooms is still high.

Average hotel prices rose by 3–12% during Q1-2023 and Q2-2023, with increases of 12% in Europe, 5% in North America, and 3% in Latin America. Reductions of 19% were seen in the Middle East and Africa, 2% in Asia, and unchanged rates in Australasia.

Tokyo continued to be the most expensive city in Asia to stay in, with average prices of USD$286 per night. Singapore was the next most expensive city, at USD$260 per night. As a result of China’s border opening up again, Hong Kong has surpassed Seoul to become the third most expensive hotel room night in Asia.

Beijing witnessed the largest increase in hotel room costs in China, rising by 12% to US$175 per night compared to Q1-2023. Shanghai experienced a rise of 5% to USD$140 per night, while Hong Kong saw an increase of 10% to USD$246.

Bangalore continues to be the priciest city in India, with average hotel rates of USD$146, Delhi at USD$120, and Chennai at USD$101.

63.3 percent of rooms were occupied globally as of June 2023, which is 96 percent higher than in 2019. India had the greatest occupancy in Asia, with Mumbai reaching 101% and New Delhi at 97%. China was next with Shanghai at 95% and Beijing at 93%.

Source- Travel daily

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