FCM Consulting Releases Global Quarterly Trend Report for Q2-2024
Strong Passenger Demand Leads to Continued Growth for the Business Travel Industry, Despite the Rising Costs of Airfare Throughout the Year
New York, NY (September 5, 2024) – FCM Consulting, a division of leading travel management company FCM Travel, today released its latest Global Quarterly Trend Report for Q2-2024, which provides an insightful look at forecasts for the year ahead and the key trends shaping the business travel industry. The report is sourced using FCM’s corporate booking from April to June 2024.
According to the report, there continued to be incremental growth for business travel during the second quarter of this year. Global passenger demand in the airline industry remained strong, up 9.1% in June 2024, compared to June 2023. International demand saw the largest growth at +12.3%, while domestic demand was up 4.3%.
With the passenger demand expected to rise steadily through the next quarter, airlines are increasing their seat capacities as well. The total seats offered globally is up 6.15% so far in 2024, compared to 2023. Furthermore, 11 of the top corporate airlines are also forecasted to exceed their 2019 seat capacity levels by the end of this year.
Given the positive travel momentum of late, the data suggests that pricing will also continue to go up across the globe. Economy airfares rose $65 (+15%) and business class fares increased by $209 (+11%) from January to May 2004, versus that same time period in 2019. However, the cost of international economy flights from the U.S. have started to drop, decreasing by an average of 8.8% during Q2-2024, compared to Q2-2023, which is a welcome sign for corporate travellers that often do business overseas. The biggest price drops from the U.S. were seen with flights to France (-20%), the UK (-18%), and Australia (-14%).
It’s encouraging to see the steady upward trajectory for business travel and the way the industry continues to demonstrate consistent and positive growth throughout the year,” said Ashley Gutermuth, Head of FCM Consulting, Americas. “This trend signifies the increased demand we are seeing for in-person meetings and events and the ongoing commitment to foster and build strong, meaningful relationships through business travel.
On the accommodation side, global hotel occupancy rates were expected to be at peak levels during the first half of the year, with rates reaching nearly 70% in July. The hotel occupancy rate for North America stayed constant at 63%, with only a few U.S. cities experiencing a small year-over-year increase, including New York (+4%), Miami (+4%), Chicago (+2%), and Washington D.C. (+2%).
The report also analyzed hotel pricing and the average room rate in North America dropped $31 in Q2-2024, compared to Q2-2023, with only a few major cities seeing an increase in hotel rates. The largest average room rate increases were seen in New York (+31%), Los Angeles (+10%), and Chicago (+5%). In the car rental market, the global average daily rate during H1-2024 was $54, a 26% decrease, when compared to 2023. In the U.S., the average daily rate was $52.
For more information on the FCM Consulting Global Quarterly Trend Report, please visit here.
About FCM Travel
FCM is one of the world’s largest travel management companies and a trusted partner for thousands of national and multi-national organizations, including many household brands, Fortune, and FTSE 100 companies. With a 24/7 reach in 95 countries, FCM’s agile and flexible technology anticipates and solves client needs supported by expert teams who provide in-depth local knowledge and duty of care as part of the ultimate personalized business travel experience.
As the flagship corporate travel arm of Flight Centre Travel Group, FCM is able to deliver some of the most competitive rates, unique added-value benefits, and exclusive solutions for its clients to support their business travel requirements. A recognized leader in the travel tech space, the company has debuted several proprietary client solutions over the last 12 months including a new omnichannel platform featuring a "first of its kind" customized end-to-end user experience and FCM Booking, an innovative option to traditional OBTs.
Alongside its travel management services, the company provides specialist services through FCM Consulting and FCM Meetings & Events to service broader needs of clients. Discover the alternative at www.fcmtravel.com
Media Contact
Scott Weiss – FCM Consulting
U.S. Director of PR and Communication
scott.weiss@us.flightcentre.com