Business travel triggers rising air fares

first_imgSource = e-Travel Blackboard: N.J Air fares in the Asia Pacific region rose by up to three percent last year, as business travellers increased demand in China and Australia. According American Express Business Travel director of advisory services Carl Jones, the push in fares is a result of the stable economy and companies resuming their investment in business travel. “We’re beyond the post-GFC recovery, and have moved into a new environment,” Mr Jones said. “Companies resumed their investments in business travel in 2010. “That demand, coupled with slightly lagging airline capacity, pushed fares up across the Asia-Pacific region.” The region saw first and business class seats rise up to six percent in 2010, while discounted business class fares rose by four percent for the year. The US stood as the only country whose air fares stood still throughout 2010, however, Mr Jones added that he expects business travel to continue to thrive this year, as well as air fares in Australia and Asia to continue to rise as carriers reach “optimal capacity and volatility leaves the market”. “Economies such as Singapore are surging, and intra-regional partnerships are deepening; a good example of this is the resource relationship between Australia and China,” Mr Jones said “This contrasts sharply with Europe in particular, and Asia-Pacific will continue to widen the gap in growth for business travel this year.” last_img read more