Rise in domestic air traffic

FCM Consulting has revealed Asia has had highest seat growth of 12.2% and India witnessed 13% rise in domestic air traffic from January to March 2023 against the same period in 2020.

TT Bureau

FCM Consulting’s latest Global Trends Report has revealed the first quarter of FY2023, in line with the positive momentum of second half of FY2022, will continue in both business and leisure travel with demand across the world forecast to be at 85.5 per cent of 2019 levels this year. Also, the report also revealed that Q1 2023 corporate travel demand remained strong despite the mixed economic conditions, with securing options and booking lower prices driving corporate travellers to book online, early.

India rising

Gaurav Luthra, MD, FCM India, believes the future of Indian aviation looks bright. “Air India ordered 840 planes, which is one of the largest orders by an airline. IndiGo is looking to expand with 500 new aircraft ordered. New airlines entering the aviation space provide more options to travellers—there has been a 13 per cent rise in domestic air traffic for the period of January to March 2023 versus 2020. I am positive global traffic will recover once we have the air capacity back to what it once was,” he said. Mumbai to London saw the highest increase, 26 per cent, in discounted economy fares, while business class fares from Dubai to Shanghai increased by 47 per cent.

Domestic trends

Domestic booking for Q1 2023 versus Q1 2022 saw a 27 per cent rise in online adoption, the advance booking days extended from 17 to 19, and average days away held firm at 2.9. The report showed in-person meetings were the reason for corporate travel. Global hotel occupancy for the quarter was 60.46 per cent, four per cent below the occupancy levels of 2019.

Asia lift-off

It was revealed that the Asia saw the highest seat growth in Q1 2023 versus Q4 2019 with a 12.2 per cent increase, with most regions averaging two per cent growth. Exception was Europe, which saw an 8.7 per cent decline as the region balanced changes in demand.