Demand will continue to outgrow supply: American Express

Demand for hotel rooms in the Asia-Pacific region by the corporate sector is set to increase again in 2008 at a rate which cannot be matched by supply, claims American Express consulting in their new report.

The American Express 2008 Asia Pacific Corporate Hotel Rate Projections and Market Forecast released Monday predicts that growing corporate demand for rooms in the region will also lead to more room rate increases for 2008.

“Travel Managers and Procurement professionals will continue to face many challenges when managing hotel expenses, however there are steps companies can take to enhance their negotiating position,” said Prashant Aggarwal, American Express Consulting, Head of Japan, Asia Pacific and Australia.

Across the ASEAN markets, occupancy rates fluctuates from region to region, with Singapore maintaining highs of around 81%, and Manila and Kuala Lumpur not far behind, averaging around the mid-70s.

In Australia occupancy levels are boosted by domestic as well as international corporate stays, with most capital cities averaging between 77 to 80 per cent occupancy.

Hong Kong continues to lead the way in terms of hotel occupancy rates, in 2007 recording an average of 85% as demand continues to increase from the mainland.

“It is important companies remain open to the new opportunities presented as the travel landscape continues to change,” said Mr Aggarwal. “We would recommend reviewing the factors that enable travelling employees to conduct business most effectively and then review the preferred list of hotels to ensure their services align with these needs.”

The report also predicts that corporate demand may also become more selective as business become more environmentally knowledgeable and seek hotels which are more environmentally responsible.

“The trend to include CSR [Corporate Social Responsibility] questions into the request for proposals is definitely increasing and hotels that accommodate this are going to end up winning favour,” said Mr Aggarwal.

Peter

I don't think it's the case with hotels in bangkok

I don't think it's the case with hotels in bangkok

Why not? Prices for many hotels in Bangkok have increased by 30-50% in just last couple of years. There is a definitely a strong demand for hotels in Bangkok.

the price doesn't mean there is not oversurplus of hotel rooms - it can mean as well that guests are ripped off. Show me the other city in the world where the hotel rates rose 30-50% within the last 2 years

ANYThing of AmEx is terribly flouted and will only concern the hotels THEY are willing to deal with(i.e. giving at least 10% commission), thus it says very, very little about the actual situation. All their reports of ''risen airfares'' only apply to full-fare bisnis class. But all those years Ive been coming here, there has always been a terrible oversupply of anything a tourist might possible want.

I don't think it's the case with hotels in bangkok

Why not? Prices for many hotels in Bangkok have increased by 30-50% in just last couple of years. There is a definitely a strong demand for hotels in Bangkok.

Prices have not risen 1 single baht over last 7 years in the hotels that my company has dealings with (top tier hotels).

For hotels in 1200-2000B range, the prices have been unchanged for as long as I have been coming to Thailand.

My company does travel exclusively throigh AMEX Travel, worldwide. They have issued every employee with green corp credit card for any business related expenses (not only travel) and airline and hotel bookings goes through them (must be through them).

They charge nothing (zero) to my company, they make their money from the suppliers, through their internal arrangements.

In practice, for example, The Conrad in Bangkok is 3600B for us, I can book through AMEX and stay there privatelly, they would not care.

Airfares are not rock bottom, I can find cheaper, there is some flexibility that tickets have, although it is a minimum possible. And no low cost or Eva or China Eastern to fly with.

the price doesn't mean there is not oversurplus of hotel rooms - it can mean as well that guests are ripped off. Show me the other city in the world where the hotel rates rose 30-50% within the last 2 years

that would be Kuala Lumpur, without the smallest doubt......