A Global Quarterly Trends Report from corporate travel management company FCM shows that the seating capacity for airlines is expected to increase next year.
The first quarter of the new year is forecasted to see a 5.3 percent more seat capacity domestically and internationally compared to 2019.
Africa leads the way with a predicted increase of 14 per cent, followed by the Middle East, Latin America, North America, Asia, Australasia, and Europe.
“One of the biggest impediments to recovery so far has been the lack of airline capacity and competition, but things are improving,” said FCM New Zealand General Manager Kelly Thomas.
“With airline capacity set to grow and, in parallel, demand stabilises, the corporate travel landscape is set to return to relative normalcy in 2024.
Hotel occupancy levels averaged 68 per cent per month in 2023 globally, and corporate average room rates (ARR) have plateaued, signalling rate stability, while the overall global average daily rate (ADR) for car hire will stabilise to plus two to three per cent in 2024.
“Our FCM team will sit down with their clients to change options to keep within budget without compromising quality. For example - consolidating suppliers for leverage, reviewing hotel policy rate caps, utilising some of the newer hotels that have opened across New Zealand and the world, plus other adjustments.”
New Zealand businesses have begun looking at their travel programmes for 2024 and the costs associated with potential stakeholders around the world, planning large-scale conferences and trading both domestically and internationally.
