BCD Travel looks at 2008 challenges for corporate travel
Friday, 1 February 2008: Looking at the year ahead BCD Travel has identified full flights, oversold hotels as two of the major challenges in a year where corporate demand is set to reach new heights in the Asia Pacific.
As the Asia Pacific region continues to boom, hotels rates and airfares are expected to grow at above the average global trend. Where general airfares are expected to lift by two to four percent globally, BCD Travel predict that in Asia it will likely increase by well over ten percent.
In terms of hotel rooms, rate increases are expected to grow by double digits in major Asian hubs. Cities such as Singapore and Hong Kong where many multinational companies are located will be some of the most in demand.
“At every turn we are hearing our clients express concern with rising costs. They are finding it increasingly difficult to negotiate private rates due to strong demand from other traveller segments,” said Roger Pfund, BCD Travel GM and VP Asia Pacific Operations.
“We recommend working with carriers and hotels who understand the value of retaining their loyalty when the economic times turn, which they inevitably will.
“We also encourage our corporate clients to strengthen their travel policies, as well as ensure increased compliance. In the face of increased costs, weak travel policies further worsen the situation,” Mr Pfund said.
He also warns that the situation is sure to get worse before it gets better.
“We urge our clients to stay the course, balancing cost management while making sure their travellers’ safety, security and productivity remain high,” he adds.