This new Asia Pacific travel forecast provides companies a glimpse at what you and your globe-trotting business travelers can expect this year.
This post was originally published January 17, 2019, and updated on February 28, 2020.
Just across the Pacific Ocean sits a collection of emerging markets, which means that many American companies are interested in an Asia Pacific travel forecast for 2020. If and when your business travelers are often visiting Hong Kong, Tokyo, Sydney and other centers of commerce in the region, even moderate price swings can make a serious impact on your bottom line.
A new 2020 travel forecast predicts how Asian fares and other travel-related metrics will change this year. This report provides a good indication of what companies that often visit the Asia Pacific region can expect in regard to business travel this year — as well as how the Asia Pacific experience will compare to other global destinations.
General Business Travel Trends in the Asia Pacific Region
Price swings in 2020 will vary depending on how far you’re traveling. While international fares are expected to increase only 1%, regional fares will increase at a slightly accelerated pace of 2–3%. One factor to watch in Asia’s air travel industry is the emergence of low-cost carriers. While business travelers are more reluctant to use LCCs, they are starting to transform air travel on the continent, just as they previously transformed air travel in Europe.
Asia Pacific Air Prices for 2020
The report provides specific forecasts for some of the most-visited nations in the Asia Pacific region. The cost of flying to these nations will increase at a faster rate than flying to Asia as a whole. Here’s a look at how air prices will shift in different countries in 2020:
|Most-Visited Nation||Price Shift|
In China, high-speed rail is becoming a more attractive option, but trains are full and business travelers are often forced to choose air travel for last-minute trips. Airports are near capacity, too, which will drive the increase in prices.
In India, Jet Airways has collapsed, which limits supply and spikes prices for all air travelers. Issues with Boeing’s 737 Max 8 has also grounded a large chunk of SpiceJet’s fleet, further limiting options.
In Japan, the upcoming Olympic Games will keep prices high throughout 2020. Competition from high-speed rail will limit price growth this year, but demand will remain high enough to sustain increases.
Asia Pacific Hotel Prices for 2020
Similar to the forecast for air prices, the report also includes a rundown of how hotel prices are expected to change. On average, look for hotel prices to increase 2–4% across Asia. Here’s a look at how hotel prices will shift in various countries:
|Most-Visited Nation||Price Shift|
Again, the upcoming Olympic Games are largely driving Japan’s eye-popping growth numbers in the hotel industry. The strength of the global economy is driving price increases across other Asian destinations.
Comparing Asia Pacific to the Rest of the World
This Asia Pacific travel forecast may be easier to digest within the context of price changes worldwide. Here’s a comparison of how air and hotel prices will shift in 2020 across different global regions:
|Global Region||Intercontinental Shift||Regional Shift|
As you can see, the price of air travel remains relatively stable around the world. Asia sees one of the largest increases with its regional airfares, and the Southwest Pacific is the only region to see a drop in the price of air travel.
Take a look at the same region-by-region comparison for hotel prices across the globe:
|Global Region||Price Shift|
Asia leads the way in rising hotel prices, but this slight lead may be attributable to Japan and the boost in prices related to the Olympic Games. Other regions will enjoy only slight growth in 2020.
How Do You Manage Travel Spend?
As an executive, you know that managing travel spend is challenging, especially in a dynamic global marketplace in which prices change on a region-by-region and country-by-country basis. Is your company doing what’s need to optimize its travel spend?