Travel agency FCM says that corporate and leisure travel in 2024 is expected to overtake 2019 levels and a key trend of more seats on fewer flights is set to continue.

In its Q4-2023 Quarterly Global Trends Report, travel management company FCM Consulting predicts that travel offered to corporate and leisure clients combined will exceed the yearly travel capacity in 2018 and 2019.

In a press statement, FCM Consulting cites data prepared by London-based data analysis firm Cirium to state that a key trend that is set to continue for 2024 is more seats with fewer flights. It says that H12024 is forecast to offer over 97.9 million or 3.5 pc more seats, and 2.1 million or 5.6 pc fewer flights than H1-2019.

“This is a result of fleet configuration changes and shifts in schedules to meet the demand. When carefully planned, this will be favourable to airline operating costs, staffing, airport slots and airport costs,” says Sunny Sodhi, Managing Director of FCM Travel India.

FCM says in comparison to H1 2019, Asia will see a 3 pc increase in seats and 1 pc increase in flights in H1 2024. Africa is set to witness the highest growth in seats at 11 pc and 6 pc flights while Europe will have a 1 pc and 8 pc decrease respectively.

It says that the Middle East will grow 7 pc in seats and 4 pc in flights. For North America, there is predicted to be a 7 pc increase in seats whereas a 7 pc decrease in flights.

The statement adds that Mumbai to London saw a 25 pc increase in economy class fares and a 24 pc increase in economy class fares from Mumbai to Delhi. Business class fares from Mumbai to London increased by 13 pc.

“American Airlines, Delta Airlines, United Airlines, China Southern Airlines, China Eastern Airlines, LATAM Airlines Group, Qatar Airways, Cathay Pacific, Singapore Airlines, and Virgin Atlantic Airways are all forecast to be back over 100 pc in terms of seats offered when compared to five years ago,” adds Sodhi.

FCM says that the top five domestic routes flown by business travellers in India are Chennai to Delhi, Delhi to Bangalore, Delhi to Mumbai, Mumbai to Bangalore and Mumbai to Delhi. In terms of accommodation, the average room rates increased across all regions for 2023, when compared to 2022, with Asia seeing the highest rise globally of USD 39.

“Delhi commands the highest average room rate of USD 249, followed by Bangalore at USD 192 then Mumbai at USD 157. Chennai’s average room rate is USD 130 but it witnessed the highest increase of 35 pc versus Q3-2023,” adds Sodhi.

FCM says that despite the increased cost, all regions also saw a lift in occupancy levels year-on-year, with Mainland China, the last major nation to reopen its borders, leaping 34 pc to have an occupancy rate of 65 pc, Asia excluding China saw an increase of 17 pc, and India saw an increase of 1.8 pc to 70 pc occupancy level in 2023.