Established and emerging destinations in the Asia-Pacific region (APAC) are experiencing increased travel demand from corporations investing across the region. That’s according to the quarterly market update published by the serviced accommodation provider SilverDoor.
Demand is expected to remain high as companies continue to diversify their supply chains.
Ongoing changes to trade agreements and tariffs are cited as reasons behind increased demand for business travel. Technology companies including Apple, Google and Nintendo are taking steps to diversify their supply chain and shift their focus from China to other APAC locations.
Across Taiwan, demand is booming. Locations such as Tainan and Hsinchu are welcoming a growing number of corporations, and the average stay in Taichung is 122 nights, indicating that strong demand for long stays is set to continue.
Average daily rates (ADR) across APAC dropped by 9.1%, quarter-on-quarter, to S$219 (£125.65).
Demand for business travel has also been accelerated by the free trade agreement between the UK and India, which will cut tariffs on mutual exports. Mumbai, in particular, has seen growth in demand from the oil and gas sector.
Hubs including New Delhi, Hyderabad, Gurgaon, Mumbai, Chennai, Noida and Pune are also seeing increased demand as investment grows and corporate travel volumes to tier-one and tier-two tech cities are expected to follow suit. However, the India-Pakistan conflict is tempering demand.
Amy Pammenter, Senior Client Programme Manager at SilverDoor, said: “Corporates are taking proactive, strategic approaches to realising their own ambitions for growth against a backdrop of shifting geopolitical and economic landscapes. The increased investment in APAC, coupled with the decline in ADR will be welcome news for corporate clients and travel managers who are keen to manage costs whilst at the same time diversify across their own supply chains.”
The market update also shows that, quarter-on-quarter, the average length of stay in the Europe, Middle East and Africa region is down 17 nights, to 41 nights while the lead time on bookings is up eight nights to 45.
A full analysis of results, comparing the periods from November 2024 to January 2025 with February to May 2025, is available on the SilverDoor website.
