Hotel Rates Hike Here Could Be 2nd-Highest In Region

Source : TODAY, Thursday, October 25, 2007

Hotel room rates in Singapore are expected to show the secondhighest percentage price hikes in the Asia-Pacific region next year, behind only India, according to the annual Global Business Travel Forecast released by American Express yesterday.

But travellers will be relieved to know that this trend is likely to be softened by the lowest price inflation in airfares in the same two countries, the Amex forecast noted.

Rates for mid-range hotels are forecast to rise between 27 and 29 per cent in Singapore next year, compared to between 34 and 38 per cent in India and between 18 and 22 per cent in the Asia-Pacific region. Forecast for global rates is a 11- to 14-per-cent rise.

For high-end hotels, the expected hikes in both Singapore and global hotel rates are similar to the forecasts for the mid-range market. Forecast for India is a 38- to 41-per-cent rise and between 18 and 22 per cent for the Asia-Pacific region.

The growth of budget carriers in the region and the focus by airlines on building market share at the expense of profitability mean that expected rises in airfares remain modest despite rising fuel costs.

Economy class fares are forecast to remain flat in Singapore and India, compared to a 1- to 3-per-cent rise in the Asia-Pacific region and a 1- to 4-per-cent rise globally. Business class fares are predicted to rise by a maximum of 2 per cent higher in India and 2 to 4 per cent here, compared to a rise between 3 and 6 per cent in the Asia-Pacific region and between 5 and 8 per cent globally.