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Heightened hotel occupancy squeezes Travel Management Companies

02/15/2008| 11:05:00 AM| 中文

Published: 13 Feb 2008: Huge growth means hotels are experiencing unprecedented levels of occupancy throughout Asia.

Published: 13 Feb 2008: Huge growth means hotels are experiencing unprecedented levels of occupancy throughout Asia. Demand is at such a high that - according to Lodging Econometrics - there are currently 1,555 hotels under construction, containing some 366,000 rooms in 24 countries across the region (Business Travel News, 4.2.08).

It’s a revenue management dream, as emphasis shifts towards increasing revenue per available room (RevPAR) rather than the more primitive desire to simply improve occupancy rates.

Cathay Pacific CEO, John Slosar, sees the buoyant Asian economy forging forward throughout the anticipated global recession. Slosar believes that ‘you would have to say there is a good chance there will be some kind of slow down of economic activity, although we don’t see it completely collapsing’ (The Age, 6.2.08).

This combination of a strong economy and increasing demand will create a difficult playing field for travel management companies, says Berthold Trenkel, President of Asia/Pacific for Carlson Wagonlit Travel. Available rooms and previously negotiated deals become mysteriously scarce in times of heightened demand. Trenkel comments ‘Global distribution system inventory will disappear and you will start managing rooms on a local basis, where you’ll need to call directly to get rooms’ (Business Travel News, 4.2.08).
TAGS: Lodging Econometrics | Cathay Pacific | Carlson Wagonlit Travel
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