Business travel demand has had "gradual, consistent growth" in the first quarter as pricing remains elevated across several categories, according to FCM Consulting's Global Quarterly Trend Report, released Thursday.
The report, based on FCM's corporate booking data in the first quarter, showed global economy airfares in January were up $45, or 11 percent, compared with pre-pandemic levels in January 2019, and business class tickets were up $224, or 12 percent, over the same period. In North America, that increase was 15 percent for economy fares and 9 percent from business class fares.
Even as fares remain comparatively high, there are signs of moderation. Compared with January 2021, for example, global economy ticket prices were down 16 percent, according to FCM.
Year-over-year comparisons for airfares were not provided in the report.
In lodging, rate performance was mixed across global regions in the first quarter, FCM reported. The $244 average room rate in North America for the quarter was the highest of global regions reported, and the rate was up $5 year over year. Rates in Latin America increased $12 year over year to $140 during the quarter, and rates in Asia were up $2 to $174.
Rates in the rest of the regions were down year over year in the quarter, including a $17 drop to $197 in the Middle East and Africa, a $10 drop to $169 in Europe and a $9 drop to $154 in Australia and New Zealand.
Car rental rates on a global level, meanwhile, were down $22 year over year to an average daily rate of $51. Suppliers are cutting rates to stimulate demand, according to FCM.
The report noted booking volume in the first volume was "steady," and "we’re looking forward to seeing the business travel momentum carry through into the rest of the year," Ashley Gutermuth, Head of FCM Consulting for the Americas, said in a statement. "Given the increased demand and positive economic outlook, it’s been an encouraging sign to see companies start to increase their corporate travel budgets and further embrace the return to the air."
FCM highlighted slight changes in traveler behavior over the past year in the report. Advanced booking has increased by 1.5 days year over year to 23.3 days in the first quarter. Average rip length also has increased by 0.3 days to 4.4 days, according to the report.