Business travel has been steadily rebounding since the onset of the pandemic, with Q1-2024 witnessing consistent growth in trip numbers, according to the latest Global Quarterly Trend Report by FCM Consulting.
The report reveals that globally, ticket prices for economy class flights were on average 11 per cent higher compared to pre-pandemic levels in 2019. However, there has been a notable decrease of 16 per cent in flight costs in the same class since January 2021, offering some relief to travelers.
FCM Travel Southeast Asia, General Manager, Kenji Soh attributed the strength in pricing to the incremental growth in demand throughout 2024. “Global inflation estimates for the year stand at 5.9 per cent, accompanied by declining unemployment rates and a resurgence in consumer confidence,” Soh said.
Despite ongoing geopolitical conflicts introducing a level of uncertainty, Soh expressed optimism about the economic outlook for the rest of the year. He noted that corporate budgets are expanding, fostering steady trends in business travel.
The report also indicates stable booking volumes in Q1-2024, signifying consistent corporate travel demand and providing greater predictability for the industry. Soh highlighted the importance of budget management among travelers, with increased advanced booking days and extended durations of trips, reflecting the enduring trend of blending business with leisure, known as “bleisure.”
Looking ahead, forecasts suggest a promising outlook for business travel, with an average increase of +3.6 per cent in monthly seats offered from May to December 2024 compared to 2019 averages. Additionally, the report anticipates a six per cent rise in seats offered by top global corporate airlines, with low-cost carriers (LCCs) playing a significant role, representing 31 per cent of global seats offered in 2024.
