Asia Pacific leads world in seat capacity growth in Q1 2024: ForwardKeys

Pivotal role of flight connectivity, visas & innovative marketing
2024-05-22
/
/ New Delhi
Asia Pacific leads world in seat capacity growth in Q1 2024: ForwardKeys
Asia Pacific leads world in seat capacity growth in Q1 2024: ForwardKeys

Airfares have shown a consistent downward trend since 2023

A report presented by ForwardKeys at the recently concluded PATA Annual Summit says Asia Pacific leads the world in growth in seat capacities on international flights and underlined the importance of easier visas and improved connectivity in boosting travel.
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Air connectivity in the Asia-Pacific region, which has faced significant challenges since the Covid-19 pandemic, is rebounding swiftly. As of the first quarter of 2024, the region’s seat capacity recovery is just 13 pc shy of 2019 levels. Notably, the Asia-Pacific outpaced global seat capacity growth, registering a 7-percentage point increase compared to the global average of 3 percentage points between Q4 2023 and Q1 2024.

According to a press statement issued by travel data aggregator and analysis firm ForwardKeys, these were some of the points made by Olivier Ponti, Director of Intelligence & Marketing, ForwardKeys, at the PATA Annual Summit 2024 in Macau.

The statement adds that highlighting the region’s remarkable recovery post-Covid-19, Ponti’s presentation underscored the pivotal role of increased flight connectivity, innovative marketing strategies, and relaxed visa requirements.

Ponti added that as seat capacity gradually rebounds, airfares have shown a consistent downward trend since 2023, despite remaining higher than 2019 levels due to limited capacity and strong demand. This trend was particularly evident during significant events such as Chinese New Year and major concerts in Singapore. For example, Taylor Swift’s concert in Singapore in early March led to a 17 pc increase in travel from Southeast Asia, contrasting with a 27 pc decline in the rest of the month.

Another aspect highlighted by Ponti was that visa facilitations make travel rebound faster. Ponti highlighted that the Chinese outbound travel during the Labour Day holiday on May 1 indicates a mere 16 pc decrease compared to the levels recorded in 2019. The relaxation of visa policies has notably enhanced Chinese travel to numerous destinations. ForwardKeys says that data revealed a 212 pc surge in travel from China to Kazakhstan, with notable increases to Singapore, Azerbaijan, Malaysia, and the Maldives. However, Thailand’s slower recovery is attributed to ongoing safety concerns. All of these countries have either announced a visa waiver or allow visa on arrival for Chinese nationals, says ForwardKeys.

Ponti added in his presentation that Air Macao’s pandemic-era promotions, such as ‘buy one, get one free’ tickets, successfully attracted mainland Chinese couples and continue to do so post-pandemic. Its new ‘Travel Pass’ offer for affordable travel from specific cities to Macau has further increased couple bookings by 4 percentage points compared to 2019 levels, says the statement.

Noor Ahmad Hamid

Noor Ahmad Hamid

Ponti told the gathering that the forward-looking travel outlook for the Asia-Pacific region remains positive, although recovery is still ongoing. As of April 27, summer travel bookings to APAC are down by only 12 pc compared to 2019 levels. In contrast, travel to Europe and the Americas has fully rebounded, and travel to Africa and the Middle East is down by just 5 pc.

Olivier-Ponti

Olivier Ponti

“The travel industry can effectively attract tourism by harnessing the power of visa facilitation, strategic marketing, and leveraging major events. These elements are crucial in driving the recovery and growth of tourism in the Asia-Pacific region,’’ said Noor Ahmad Hamid, CEO, PATA.

“Our data highlights a robust recovery trajectory in the Asia-Pacific region. The 7-percentage point increase in seat capacity from Q4 2023 to Q1 2024 and the noticeable decline in airfares, driven by strategic marketing efforts, underscore the region’s resilience and adaptability,” said Ponti.

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