Logistics

‘Airfares may go further north on higher business travel'

Our Bureau New Delhi | Updated on June 02, 2011 Published on June 01, 2011


Airfares across India and Asia-Pacific may continue to rise on the back of higher business travel.

A survey of regional businesses by the American Express Business Travel Monitor found 62 per cent saying they will spend more on travel to meet new clients, and 54 per cent reporting they will ramp up international travel.

Airfares witnessed a strong year-on-year growth in the first quarter of 2011 because of higher demand, capacity discipline by airlines and rising oil prices, according to the survey.

The American Express Business Travel Monitor, which tracks and analyses published airfares on a quarterly basis, also found that although fares moderated in the fourth quarter, the influence of rising oil prices and economic growth in the region were too strong to keep prices steady.

“In the fourth quarter of 2010, we experienced a levelling of airfares, followed by expansion in 2011. Strong demand for high-end European products and services is driving greater fare growth to the region,” said Mr Carl Jones, Director of Advisory Services for American Express Business Travel.

Expecting demand momentum to continue, Mr Sandeep Shastri, Vice-President and General Manager, Global Business Travel, said, “Labour force growth and a rapidly expanding middle class will continue to fuel demand for business and leisure air travel in India.”

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Published on June 01, 2011
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