A new report released by FCM Consulting shows that global passenger demand rose by 9.1 percent as of the end of the first half of this year.

The latest Global Trends Report showed how numerous factors drove incremental growth in the business travel sector. Along with strong overall global passenger demand, these factors include a need for in-person meetings, as well as the return of in-person conventions, exhibitions, and similar events.

Based on figures from the International Air Transport Association (IATA) as of 30th June, global passenger demand rose by 9.1 percent compared to where it was in June 2023.

A passenger demand boom

International passenger demand saw the largest growth of 12.3 percent, while passenger load factors were 85 percent, an increase of 12.7 per cent year on year. 

Domestic passenger demand, on the other hand, stood at 4.3 percent. Passenger load factors were 85 percent, showing an increase of 2.1 percent year on year

According to Felicity Burke, FCM Consulting’s head in the Asia-Pacific: “Total seats offered for calendar year 2024 is up 3.04 percent from 2019 levels and up 6.15 percent from 2023. This calendar year is the new baseline for aviation growth after 2023. [Also,] 2025 airline schedules are forecast to be positive with continued increases.” 

Burke added that the forecast seats offered across the top corporate global airlines in 2024 are set to be five percent above 2019 and, in comparison, seats offered in 2023 were two percent below 2019 levels. It should also be noted that 11 of the top corporate airlines hope to exceed their 2019 levels by the end of 2024.

The accommodation scene

The report likewise stated that the hotel average room rate across the top 100 corporate cities reported by FCM Consulting’s business analytics team was US$182, a US$5 drop versus H1-2023. As reported by STR on 6 July 2024, the global hotel occupancy rates were forecast to reach 70 per cent during July.

Global hotel occupancy climbed to nearly 70 per cent 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.

FCM Travel Southeast Asia general manager Kenji Soh added: “A year after China’s border reopening, Asia’s average room rates hold strong in the first half of 2024. Singapore remains the priciest destination for hotel stays, with rates averaging US$298, a 27 percent increase compared to the first quarter of 2024; followed by Hong Kong and Tokyo.”

Soh also pointed out how Shanghai saw a modest increase of around 3 percent, bringing its average hotel room rate to US$146, while Beijing’s rate stands at US$149.

With regard to hospitality for business travellers in India, Bangalore took the lead with the highest average nightly room rate at US$152, trailed by Mumbai at US$147 and Delhi at US$142.