Kayak, the travel price-comparison service, on Tuesday debuted a corporate travel service for large companies.
25.08.2023 - 14:27 / skift.com / Asia Pacific / Airlines
Airfares on key corporate travel routes are expected to rise by as much as 25 percent in 2023 amid high fuel prices, a stronger U.S. dollar and labour and aircraft shortages, a forecast from American Express Global Business Travel (Amex GBT) showed.
The biggest gains are expected in economy class on routes between Australia and Asia, in business class on Australian domestic flights and those to New Zealand, as well as in economy class on Asia-Europe flights.
The cost of economy class flights within North America will rise by a more muted 3 percent and within Europe by 5.5 percent as capacity cuts during the pandemic are restored.
“Following significant price increases in 2022, fare rises in the competitive North America air sector are likely to be of a smaller degree than those forecast for Europe and Asia Pacific,” Amex GBT said on Thursday.
Flights from Asia to Europe are being forced to take longer routes in many cases as airlines avoid Russian airspace due to its war with Ukraine.
On a Tokyo-London flight, the change in route can add nearly 2.5 hours of flying time and a 20 percent increase in fuel burned, Amex GBT said, contributing to a forecast 14.5 percent rise in Asia-Europe economy class fares in 2023.
In Australia, the country’s competition regulator said on Tuesday that average domestic airline revenues per passenger were 27 percent higher in October than in the same month of 2019 because of capacity constraints, high oil prices and operational challenges.
Amex GBT said global airline capacity in 2023 was expected to recover to 92 percent of 2019 levels.
Airlines group IATA forecast on Tuesday that carriers would post an industry-wide profit next year, the first since 2019, due in part to rising fares.
Kayak, the travel price-comparison service, on Tuesday debuted a corporate travel service for large companies.
The corporate division of Flight Centre Travel Group is outperforming the company’s leisure travel bookings, pointing to a comeback for a sector that has suffered significant cutbacks during the pandemic.
Clarity Business Travel, a corporate travel agency based in the UK, plans to purchase two corporate travel businesses for £36.5 million ($46 million).
American Express Global Business Travel continues to benefit from the ongoing rebound of business trips. In particular the reopening of countries in Asia Pacific, barring China of course, bodes well for the world’s biggest travel agency.
Yanolja said this week it expected that a post-pandemic rebound in international travel will continue to boost its twin businesses of online travel sales via a superapp and software sales to hotels and other travel companies. The South Korea-based startup has made progress on both ambitions since 2011, when it received a $1.7 billion investment from the Softbank Vision Fund in a transaction that valued Yanolja at the time at approximately US$9 billion.
Property manager Sonder is positioning itself long-term to take advantage of higher-spending business travelers, and added 200 corporate travel accounts — and a former CWT CEO to its board — during the third quarter.
American Express Global Business Travel has partnered with Emirates Group-owned dnata to offer its global clients more local expertise in the Middle East region.
In-person events and conferences are set to drive corporate travel’s recovery throughout 2023, as employees look for more human connections.
Johannesburg-based Club Travel Corporate is entering a critical next phase after securing the backing of a unique investment fund that will put new emphasis on working with female-owned businesses on the continent.
Both the Middle East and Europe are on track to reach their pre-pandemic levels in 2023 , according to the UN World Tourism Organization. Last year saw a stronger than expected recovery for the global tourism economy.
Mexico’s largest airport operators will likely see a boost in 2023, propelled by tourist stays at resorts and an increase in nearshoring, or companies moving operations closer to home, analysts said on Tuesday.
Just half of companies located in North America are seeing international bookings recover to their pre-pandemic levels, according to a new poll.