Passenger demand leads continued incremental growth for business travel

“Total seats offered for calendar year 2024 is up 3.04 per cent (175 million increase) on 2019 levels and up 6.15 per cent (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 Juan Antonio Iglesias, Head of FCM Consulting, EMEA.

“Global hotel occupancy climbed to nearly 70 per cent 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 per cent above 2019 and, in comparison, seats offered in 2023 were two per cent 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 per cent during July.

“In the car hire sector, The H1-2024 global average daily rate was US$54, a decrease of 26 per cent, when compared to 2023.”

FCM Travel Europe Leader, Andy Hegley added,

"Much like what we’re seeing globally, business travel in Europe is gradually recovering, bolstered by strong demand for in-person meetings and events. This follows a robust first quarter of the year, which really set the foundation for continued growth. In the second quarter, business travel showed incremental progress, with the sector forecasted for moderate growth throughout the remainder of the year. However, it’s important to note Europe faces unique challenges compared to some of the global trends.

“While global seat capacity has grown by 3% compared to 2019, and 6% compared to 2023, Europe lags behind. The number of seats in Europe has stagnated, and the number of flights has decreased by 6% in 2024 compared to 2019 levels. In contrast, regions like North America are seeing a quicker rebound in capacity, driven by stronger domestic demand.

“This constrained capacity, coupled with rising operational costs, has resulted in higher airfares across the region, with European economy ticket prices increasing by an average of 13% and business class fares by 5% compared to 2019.

“The airline industry is complex and constantly changing across each market. This poses a real challenge for organisations trying to optimise their travel programs. Travel management companies can be a true partner in this space helping identify opportunities like alternative route options, responding to industry trends with flexibility, and maximising  air contract potential now and in to the future.”

Media contact

Jennifer Peters

PR and Communications Manager, Flight Centre Travel Group, Corporate Brands

jennifer.peters@flightcentre.co.uk

+44 7918 419680