The outlook for business travel is looking robust, with continued strong demand for air travel and increased airline seat capacity. According to FCM’s Q3-2024 Global Quarterly Trend Report, this momentum is expected to carry into 2025, with passenger demand and favorable airfare trends fueling growth in the industry.
The report, which analyzes corporate bookings from July to September 2024, reveals a significant rise in global passenger demand, which was up by 8.6% in August compared to the same period in 2023. International travel saw the sharpest growth, increasing by 10.6%, while domestic demand rose by 5.6%. In response to this surge, airlines have expanded their seat offerings, with a 5.79% increase in global seat capacity, amounting to 321 million more seats than in 2023. This upward trend is expected to continue, with airlines projected to offer an additional 51.4 million seats (a 1.8% increase) in the first half of 2025.
Airfare trends are also shifting favorably for business travelers. A review of global economy class fares in August 2024 showed a 3% decrease (-$16) from the previous year, a positive sign for corporate travelers. In contrast, business class fares saw a slight increase of 6% (+$126) globally. Meanwhile, hotel rates have been mixed, with Europe and the Americas experiencing increases, while the APAC and Middle East & Africa regions saw declines.
Ashley Gutermuth, Head of FCM Consulting Americas, commented on the growth, saying, “Business travel is thriving with record-setting load factors and rising demand. The increase in seat capacity and reduction in economy airfare are promising developments for corporate travelers who rely on air travel to support their business objectives.”
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