According to FCM Consulting’s latest Global Trends Report, the travel demand has remained steady, providing stability to the airline and hotel industries.
Insights show that the global seat capacity for this year is forecasted to be only 2.8 percent down on 2019 seats, with Qantas having 98 percent of their seats compared to 2019, Air New Zealand 94 percent and Emirates 86 percent.
“It’s great to see more airlines are responding to the demand by corporate travellers and increasing their seat capacity,” said Kelly Thomas, General Manager of FCM New Zealand.
“FCM is seeing domestic seats in all global markets have now surpassed 2019 volumes with Q3-2023 domestic seat forecast to be +4.1 percent above 2019 volumes”.
In terms of corporate travel, McKinsey Global Institute has reported that hybrid work is here to stay, with an average of three days a week in the office and more people moving from cities to suburbs.
This year, a lot of air travel disruption continues to impact travel plans due to extreme weather conditions and a shortage of airport staff.
New Zealand & Australia has seen a plateau in their Average Room Rate (ARR) for accommodation.
“Outside of Auckland, all NZ major centres have seen a slight decline in average room rates, with Wellington down three percent from Q1-2023. Other notable ones are Christchurch with an ARR of $137 and Queenstown with $132.”
Heading into Q3-2023, businesses want to stretch their travel budgets with the stabilisation in the travel sector and economic uncertainties. This is possible by planning in advance and utilising travel agencies and experts to simplify itineraries. FCM’s booking technology can also help businesses manage price caps and travel preference filters.
