Industry forecast for Asia in 2016
According to Advito’s annual industry forecast, airlines are expected to continue enjoying reduced fuel prices, which would help in profitability and capacity expansion. This in turn will translate into stable airfares for business travel in Asia in 2016. Economy fares are, however, expected to go down by 2% as competition is growing and demand is slowing despite the slowdown in LCC expansion rate.
Whereas demand exceeds supply in most of the other regions, hotel supply remains high in Asia, especially in China and India, resulting in lower average rates (around 0 to -2%) predicted for the region. Occupancy rate in Japan, on the other hand, is benefiting from its economy recovery and visitor growth, as a result of relaxed visa policies.
There is also an increase in demand for meetings among Asian businesses. More meeting space will be added within the next year, and the up-and-coming Asian meeting destinations include tier-two cities in China, India, Taiwan and Yangon.
Read the full artilce from BCD Travel ; Advitos’s 2016 Industry Forecast : Airfares level, hotel rates rise