Travel Demand, Prices Surging in Asia-Pacific Region

As travel demand continues to surge, the return of Chinese travelers to the market and the continued lifting of COVID-related restrictions have led to a tourism resurgence in the Asia-Pacific region.

According to CNBC.com, Hilton Hotels & Resorts' Asia-Pacific president Alan Watts said hotel rates in the region have reached an "all-time high," with prices going up by more than 10 percent since 2022.

Hilton officials revealed that average daily rates jumped by eight percent in the fourth quarter of 2022, compared to the same period in 2019. Marriott and IHG announced that prices increased by 13 percent, while Hyatt experienced a rate growth of 14 percent.

The influx of Chinese travelers has resulted in hotel rates in key destinations climbing by more than 45 percent, with the most significant increases recorded in Bali, Bangkok, Phuket and Singapore.

CNBC reported that average hotel prices in Bangkok jumped by around 70 percent in late January.

Data identity company Adara told CNBC that Chinese travelers spent significantly more on hotel rooms in late February, with fewer travelers booking rooms under $100 a night and nearly triple the number of people booking rooms for $400 or more.

"It should not be surprising to see a rise in luxury hotel prices following mainland China's re-opening to international travel, given its role pre-pandemic as the biggest source of outbound tourist spending globally," Mastercard Economics Institute chief economist David Mann said. "Especially for economies reliant on tourism, such as Thailand."

The luxury travel surge in the Asia-Pacific region has also seen airfares skyrocket, with prices being double or even triple where they were months ago. For example, Reuters reported that a March flight between San Francisco and Shanghai cost nearly $4,000 in economy class and more than $18,000 in business class.

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