New Delhi: Airfare increases across the last quarter of 2006 in Asia pacific had slowed to 1 per cent compared to the full year-on-year moderate growth of 3 per cent.
American Express Business Travel on Tuesday published the data in Business Travel Monitor – the industry's quarterly retrospective pricing benchmark to track airfare trends – for the Asia Pacific region.
The change was reflected across most of the 14 markets surveyed, with a few note worthy exceptions with India, Indonesia and the Philippines.
Despite the flurry of low cost activity in India, domestic fares recorded a 6 per cent increase, reinforcing the phenomenon that a changing landscape does not necessarily mean everybody will buy at a lower price point.
However, growth in full business class airfares continued to increase by 2 per cent over the quarter and 6 per cent over the year.
This was largely driven by routes to the Americas, which rose by 12 per cent for business class and 10 per cent across all other fare types.
During the quarter, intra Asia Pacific routes and destinations in Europe, Middle East and Africa (EMEA) remained static (0 per cent).
"The flattening of airfare increases across the region for the final quarter of 2006 coincides with carriers operating a record number of flights to, from and within the region," said American Express (India) Global Corporate Services VP & Head Firdaus Mogul.
Routes to the Americas saw the biggest airfare growth over the year, as a result of tight capacity in some markets and the ongoing travel activity linked to the continued outsourcing of products and services to this region.
However, specific local conditions impacted individual market results.
In India, the 18 per cent increase in full economy airfares over the quarter was driven by a dramatic 30 per cent increase in domestic full economy airfares – reflecting India's continuing economic boom and expanding middle class which has created more demand for both business and leisure air travel, driving prices up in the last quarter of the year.
"Understanding the trends and what is driving them within the individual markets where a company does business is essential in order to negotiate optimal supplier agreements and to develop travel polices that are in line with your real business needs," Firdaus explained.
Airfare increases across Asia Pacific flatten in Q4 2006
Comments
0 comment