A challenging travel recovery
Travel is back with earnest. With COVID travel restrictions rapidly disappearing around the world, it wasn’t long until travellers returned in their droves to airports and hotels. However, with inflation at a high, some borders opening later than others and employment constraints across the travel industry, the recovery hasn’t been without its challenges.
According to the latest industry data in FCM Consulting’s Global Trends Report for Q2 2022, hotels and car rental providers saw uptake beyond 2019 volumes, while available air seats are still 13-15% lower than 2019 volume. Prices are up for airfares, hotel rooms and car rental across all regions, as a result of the extreme shift in supply and demand. “Domestic airfares in several markets are still flat on 2019, due to the higher supply than the current demands. However, conversely international fares are, by major routes, all up on 2019 volumes” added Felicity Burke, General Manager, FCM Consulting.
What’s causing those price increases?
1. Cost of fuel
2. Rising operating costs
3. Debt recovery of past two years
4. Salary increases to attract talent
Amidst these fluctuations, sustainability remains high priority for both companies and the travel industry. Hotels and airlines are taking the steps to meet the expectations of business travellers and procurement teams, but is it enough?
What does it mean for travel programs?
• With rising costs passed to consumers, high hotel occupancy rates and high demand for cars, it’s important to book early now more than ever.
• Now is the time to review your hotels and car rental providers – from contracts to caps.
• Travel suppliers, especially hotels, need to up their sustainability credentials if they’re to make the cut for RFPs.
How regions are faring up
Covering global statistics as well as regional insights across Americas, Asia, Australia & New Zealand, Europe and Middle East, FCM Consulting’s report details the latest trends for:
• Global aviation seat growth
• Regional aviation seat growth
• Top origin and destination airfares, vs Q2 2019
• Occupancy rates year-to-date by region
• Hotel rate growth and reduction by city
Download FCM Consulting’s Global Quarterly Trend Report – Q2 2022
Using data sourced from FCM’s corporate bookings for travel from April to June 2022, the report provides global and regional perspectives on the key trends across aviation, accommodation and ground transport.