Travel momentum flies with increased booking days and online adoption

Q1-2023 has seen the positive momentum of H2-2022 continue in both business and leisure travel with demand across the world forecast to be at 85.5%* of 2019 levels this year, according to Australia-based FCM Consulting’s latest Global Trends Report. FCM says 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. Domestic booking trends for Q1-2023 versus Q1-2022 saw a 27% rise in online adoption, the advance booking days extended from 17 to 19, and average days away held firm at 2.9. The report also showed that in-person meetings was the leading reason for corporate travel. “After 2022, a year full of significant imbalance of both supply and demand, air travel will stabilise this year, seeing added capacity in H1-2023 and airfares moderating in H2-2023 Q1-2023. The seat capacity was up 2.1%on Q4-2022 and down 6.8 % on Q1-2019,” said FCM Consulting general manager Felicity Burke. “Early forecasts show air capacity offered in 2023 will be just 2.5% short of 2019 volumes. The region with the highest seat growth in Q1-2023 vs Q4-2022 was Asia with a 12.2% increase, with most other regions averaging 2% growth. “The exception to this was Europe which saw an 8.7% decline as the region balanced changes in demand – but the Northern Hemisphere summer will drive demand in Q2 and Q3-2023.” FCM reports that some Business Class airfares have dropped. Auckland to Sydney has decreased by 24% in January and February 2023 when compared to the same months in 2019. This FCM Consulting quarterly report draws on global data sourced from FCM and Flight Centre Travel Group corporate booking data, for travel during January to March 2023 (Q1-2023). The report uses Cirium aviation schedule data as at 24 April 2023. *IATA December 2022 report.