Passenger Demand Leads Continued Incremental Growth for Business Travel
5 September 2024 – Strong passenger demand, the desire for in-person meetings, conferences, and events, and positive travel industry momentum over the last six months continues to drive growth for business travel incrementally, according for FCM Consulting’s latest Global Trends Report.
Global passenger demand, as reported by IATA^, was up 9.1 per cent in June 2024 compared to the same month in 2023.
International passenger demand saw the largest growth of 12.3 per cent and passenger load factors were 85 per cent, an increase of 12.7 per cent year on year. Domestic passenger demand was 4.3 per cent, and passenger load factors were 85 per cent an increase of 2.1 per cent year on year.
“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 Felicity Burke, Head of FCM Consulting, APAC. "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.”
^IATA passenger demand, July 2024.
*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 at 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 are a reflection of seasonality, supply and demand, booking lead times and variations in exchange rates. STR hotel content quoted as at 12 August 2024. Unless otherwise stated all fares and rates are reported in US dollars.
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
Grant Payne
Global Head of PR and Communications – Flight Centre Travel Group – Corporate Brands
grant.payne@flightcentre.com
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