Passenger demand, in-person events, and steady travel momentum drive growth in business travel, with global air and hotel rates rising.
Strong passenger demand, the desire for in-person meetings, conferences, and events, and positive travel industry momentum over the last six months continue to drive incremental growth for business travel, according to FCM Consulting’s latest Global Trends Report.
Global passenger demand, as reported by IATA, was up 9.1 percent in June 2024 compared to the same month in 2023.
International passenger demand saw the largest growth of 12.3 percent and passenger load factors were 85 percent, an increase of 12.7 percent year on year. Domestic passenger demand was 4.3 percent, and passenger load factors were 85 percent an increase of 2.1 percent year on year
“Total seats offered for calendar year 2024 is up 3.04 percent (175 million increase) on 2019 levels and up 6.15 percent (352 million rise) on 2023. This calendar year is the new baseline for aviation growth after 2023. And 2025 airline schedules are forecast to be positive with continued increases,” said Felicity Burke, Head of FCM Consulting, APAC.
“Global hotel occupancy climbed to nearly 70 percent by the end of H1-2024, and air travel demand grew steadily throughout the same period. As the northern hemisphere summer emerges, we forecast travel demand to grow steadily through the next quarter.
“The forecast seats offered across the top corporate global airlines in 2024 are set to be five percent above 2019 and, in comparison, seats offered in 2023 were two percent below 2019 levels – 11 of the top corporate airlines are also forecast to exceed their 2019 levels by the end of 2024.
“As for accommodation, the hotel average room rate across the top 100 corporate cities reported by FCM Consulting’s business analytics team was US$182, a US$5 drop versus H1-2023. As reported by STR on 6 July 2024, the global hotel occupancy rates were forecast to reach 70 percent during July.
“In the car hire sector, The H1-2024 global average daily rate was US$54, a decrease of 26 percent, when compared to 2023.”
“International economy and business class fares for all destinations globally from Singapore saw an average decrease of 12 percent and 4 percent respectively in April to June 2024”, said Kenji Soh, General Manager, FCM Travel Southeast Asia.
“A year after China’s border reopening, Asia’s average room rates hold strong in the first half of 2024. Singapore remains the priciest destination for hotel stays, with rates averaging US$298—a 27 percent increase compared to the first quarter of 2024—followed by Hong Kong and Tokyo.
“Shanghai saw a modest 3 percent rise, bringing its average hotel room rate to US$146, while Beijing’s rate stands at US$149.
“In India, Bangalore has now taken the lead with the highest average nightly room rate at US$152, trailed by Mumbai at US$147 and Delhi at US$142”.
*This FCM Consulting quarterly trend report draws on global data sourced from FCM Travel and Flight Centre Travel Group corporate booking data for travel from April to June 2024 (Q2-2024). The report uses Cirium aviation schedule data as of 19 August 2024. Airfare pricing variations exclude all taxes.
The hotel Average Room Rate (ARR) quoted is the average booked rate using FCM Travel and Flight Centre Travel Group corporate booking data. Variations in rates booked reflect seasonality, supply and demand, booking lead times and variations in exchange rates. STR hotel content quoted as of 12 August 2024. Unless otherwise stated all fares and rates are reported in US dollars.
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