Strong passenger and event demand is driving business travel

Globally, flight sales and hotel occupancy show no signs of slowing.

Business travellers continue to be on the move, with the aviation and hospitality sector reporting steady growth in demand.
Business travellers continue to be on the move, with the aviation and hospitality sector reporting steady growth in demand. Photo Credit: Adobe Stock/Maridav

The desire for in-person meetings, conferences and events, and a travel industry on the upswing has led to strong passenger demand and positive growth for business travel, according to a recent report.

The Global Trends Report published by FCM Consulting has found that global passenger demand has increased by almost 10% this June compared to the same time last year, while international passenger demand saw the largest growth of 12.3%.

“This calendar year is the new baseline for aviation growth after 2023, and 2025 airline schedules are forecast to be positive with continued increases,” said Felicity Burke, head of FCM Consulting.

“Global hotel occupancy has also climbed to nearly 70% by the end of H1-2024, and air travel demand grew steadily throughout the same period. As the northern hemisphere summer emerges, we forecast travel demand to grow steadily through the next quarter.”

Meanwhile, international economy and business class fares for all destinations from Singapore saw a dip in 12% and 4% respectively from April to June this year. Average room rates in Asia have also mostly remained steady, a year after China’s border reopening.

“Singapore remains the priciest destination for hotel stays, with rates averaging US$298 – a 27% increase compared to the first quarter of 2024 – followed by Hong Kong and Tokyo,” said Kenji Soh, general manager of FCM Travel Southeast Asia.