MANILA -Airline passengers in the Asia-Pacific are paying more for business class seats given the increase in demand for leisure travel after years of restricted mobility due to the pandemic, according to a study by travel management platform CWT.
According to the firm’s “2024 Global Business Travel Forecast” report, the average ticket prices for a business class seat soared by 148.7 percent to $567 last year in the region.
“A potent combination of demand and supply-side pressures propelled travel prices higher than expected last year,” CWT CEO Patrick Andersen said.
Apart from travel demand, the costs were aggravated by rising fuel prices and supply chain challenges, the report noted.
With airlines expanding their international network capacities due to rising demand, CWT is expecting cost pressures to taper off.
“Looking forward, prices seem to be leveling off with much milder increases projected over the next 12 to 18 months. We could now be looking at the true new cost of travel,” Andersen added.
“As this research outlines, it’s clear that rising costs and pricing pressures will likely continue to be a significant factor in business travel for the foreseeable future,” said Suzanne Neufang, CEO of Global Business Travel Association.
In the Philippines, local airlines are collecting fuel surcharges, which are additional fees to help airlines recover fuel costs.
Data from the International Air Transport Association (IATA) showed that air traffic in Asia Pacific rose by 128.1 percent in June, the biggest growth across all regions, while passenger load factor improved by 4.6 percentage points to 82.9 percent.
“Planes are full which is good news for airlines, local economies, and travel and tourism dependent jobs. All benefit from the industry’s ongoing recovery,” IATA director general Willie Walsh said.
According to aircraft leasing company Avolon, the Philippines and the rest of Asia are expected to register the fastest growth in the world in terms of passenger origin over the next two decades—even outpacing Europe—on the back of a recovering economies and accelerating cross-border mobility.