FCM's Q3-2024 report highlights rising business travel demand, increased airline seat capacity, and favourable economy airfare trends for 2025. Photo Credit: Adobe Stock/Natee Meepian
The outlook for business travel is exciting, driven by strong passenger demand, while airline seat capacity is expected to grow in 2025.
This is according to the FCM’s Global Quarterly Trend Report for Q3-2024, released this month, which forecasts the year ahead and the key trends shaping the business travel industry. The report is sourced using FCM’s corporate booking from July to September 2024.
Overall, global passenger demand was up 8.6% in August, compared to 2023. International passenger demand saw the largest growth of 10.6%, with domestic passenger demand up 5.6%. As demand has increased, airlines have been adding to their seat capacity, with total seats offered globally this year up 5.79% (+321 million), compared to 2023. The positive growth is set to continue as the report forecasts that there will be 1.8% (+51.4 million) more seats offered in the first half of 2025, compared to the same period in 2024.
Through an analysis of purchased airfare in August, global economy class airfares dropped 3% (-$16), compared to August 2023, which the report said was an encouraging trend for business travellers. Business class airfares showed a slight increase of 6% (+$126) globally. On the hotel front, Europe and the Americas saw hotel rates increase, while decreases were noted in APAC and Middle East & Africa.
Ashley Gutermuth, head of FCM Consulting, Americas said: “It’s been an exciting time for business travel with airlines experiencing record-setting load factors and passenger demand on the rise yet again. Furthermore, the increase in seat capacity and drop in economy airfare are welcome signs for corporate travellers that continue to leverage air travel to fuel business growth.”