China’s economy has slowed compared to its performance over the past few years, this has prompted more measured airline price increase expectations for 2013 than in 2012.
The Advito Industry Forecast expects demand for hotel services to grow steadily in the Asia Pacific region, and the CWT Travel Price Forecast maintains that hotels will achieve modest price inflation overall throughout the Asia Pacific region in 2013, but specific results vary widely by country. Singapore will lead the way with increases topping 8 percent in 2013, as business travel demand continues to be very strong there and available supply is not keeping up with demand. Given its proximity to China, Hong Kong in particular is benefiting from the growing middle class in China, many of whom are traveling to Hong Kong for business or pleasure, which helps push prices up across the board. Depending on crown category, travel buyers will find some price relief from hoteliers in China and India in 2013, with each group expected to offer some declining rates. This is due to the dramatic influx of new hotel construction in each country as global brands expand their presence there; however, demand, albeit strong, does not appear to be keeping pace with supply, forcing hotels to lower rates to keep rooms full. India’s 4-5 crown properties are expected to be most impacted, with decreases in the 6-8 percent range, given the bulk of new hotels coming online fall into that category.
Meeting and event cost per attendee per day costs will increase 5-7 percent throughout the Asia Pacific region in 2013, though conditions will vary considerably by country based on the pricing power of local suppliers, particularly hoteliers. Group sizes are expected to decrease as organizations there opt for a larger number of smaller meetings over a shorter duration.
- Latin America
The Advito Industry Forecast indicated that it expected demand for hotel services to grow rapidly in Latin America, and this was echoed by the CWT Travel Price Forecast:
The healthy economies of Brazil and Chile are expecting noteworthy airline price increases in 2013. Both countries’ booming economies are driving hotel prices up significantly compared with other countries in the Latin America region. Brazil leads the way as the only nation in CWT’s entire 48-country forecast expected to see double-digit hotel price increases next year, which causes significant challenges for travel budgets. Brazil is among only a few markets globally where significant new hotel construction is expected, as the country prepares to host two global sporting events - the FIFA World Cup in 2014 and the Olympic Games in 2016. While buyers will not be able to take advantage of that new inventory until it comes online in the next several years, it may eventually help alleviate some of the price increases they are forced to endure right now.
Reed Exhibitions | EIBTM Trends Watch Report 2012 29
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