Results from American Express Business Travel Monitor

Despite expectations that the Global Financial Crisis would produce significant savings for travellers, results from the fourth quarter 2009 American Express Business Travel Monitor indicate a mixed picture. The results reveal that year-on-year, published airfares increased just 1% overall in the Asia Pacific region. Comparing the third to the fourth quarter of 2009, there were price increases across Business as well as Economy classes.

Commenting on the findings, Jonas Borglin Head of Advisory Services for American Express Business Travel, Japan, Asia Pacific and Australia said, “When the economic crisis hit, almost immediately the industry felt the consequences as both leisure and corporate travellers scaled back or stopped travelling. To protect their interests, airlines responded by reducing their fleet inventory and restricting flights and routes. While the perception may have been that travel was much more affordable during the economic crisis, in many cases published airfares increased.”

Borglin believes that as the economy continues to strengthen we’ll likely see prices rise further and that it will be more important than ever for businesses to gain control of spending.

“We have entered a new normal, where we expect that travel volumes and spending patterns will differ from what they were prior to the economic crisis. However as companies regain their confidence and travel does pick up again, there is a real risk that the cost will be significant for businesses unless they have clear visibility and control of their spending.”

In Hong Kong, published fares were up 1% overall quarter-over-quarter and 5% year-on-year. Business Discount airfares continued to rise with a 2% increment in the last quarter, following a 21% year-on-year increase. There was also a bounce back in Economy Full airfares which increased 2% in the last quarter, following a 5% year-on-year drop.

In China, published fares were down 1% overall quarter-over-quarter and 6% year-over-year. There was a strong bounce back in Business Discount airfares which increased 7% in the last quarter, following a 20% year-on-year reduction.

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