FCM Report Shows Q4 Rise in Global Corporate Airfares

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Global airfares were up by double-digit percentages year
over year in the fourth quarter, according to FCM’s Global Quarterly Trend
Report. The report, based on FCM’s corporate booking data, showed economy
airfares across 380 city pairs was up $76, or 17 percent, year over year, while
business airfares increased by $246, or 15 percent.

In North America, the largest economy fare increase was the
route between New York’s John F. Kennedy International Airport and Los Angeles
International Airport, up 33 percent. Business fares in North America, however,
were largely down year over year in the fourth quarter. Business fares between
JFK and Toronto registered the only increase, up 11 percent.

FCM said airline global capacity is expected to exceed
pre-pandemic levels this year but that airlines are adding more seats with
fewer flights as a result of “fleet configuration changes and shifts in
schedules to meet demand.” In North America, for example, FCM projects the
number of available seats in the first half of this year will be up 7 percent
compared with the first half of 2019, but the number of flights will be down 7
percent. In Europe, the number of seats will be down 1 percent and flights down
8 percent, according to the report.

In addition to its own booking data, FCM’s report uses
Cirium data in capacity analysis.

On the hotel side, corporate average daily rates in North
America for the fourth quarter were up 9 percent year over year, but they were
up only 1 percent compared with the third quarter, which FCM said is an
indication that rates are stabilizing. In Europe, rates were up 28 percent year
over year but only 2 percent compared with the third quarter.

Other regions showed less stable hotel rate movement. In
Australia and New Zealand, for example, rates were up 19 percent year over year
and 12 percent quarter over quarter. Corporate hotel rates were up 43 percent
year over year in Asia and up 14 percent quarter over quarter.

Car rental rates also are stabilizing, with the global
average daily rate for car rental generally flat over the course of 2023 at
$73, the report indicated. That is $20 higher than the ADR for 2019, however.

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