Business travel experienced “incremental growth” in the second quarter of 2024, according to FCM Consulting’s Global Quarterly Trend Report. The report, which relies on data from corporate bookings, predicts a period of “moderated growth” for the remainder of the year.
The Flight Centre-owned travel management company (TMC) reported that global average airfares have generally increased throughout 2024. Economy airfares saw a 15 percent rise in the first five months of 2024 compared to the same period in 2023, translating to an average increase of $65. Business class airfares also increased by 11 percent, or approximately $209 per flight.
Despite these overall increases, FCM identified some areas of “pricing softness.” Specifically, international economy fares from the US decreased by 8.8 percent in the second quarter. The most significant year-on-year fare drops were for flights from the US to France and the UK, with prices falling by 20 percent and 18 percent, respectively.
The report highlighted a rise in the share of New Distribution Capability (NDC) transactions, which represented 21.5 percent of total airline bookings through ARC (Airline Reporting Corporation) in June 2024. This is a notable increase from an average of 10 percent in the first half of 2023 and 18 percent in December 2023.
Additionally, FCM noted a decline in average daily hotel room rates across most global regions during the first half of 2024. In Europe, for instance, hotel prices dropped by 6 percent, or $11, year-on-year, resulting in an average rate of $180.
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