“Airfares are still extremely affordable”: Skroo

By Hannah Edensor

Just a week after a study showed Australia is one of the most expensive countries for flying, a report from Flight Centre’s business travel consulting division, 4th Dimension, says we’ve never had it so good.

The 4th Dimension report compared the price of corporate and leisure airfares purchased in 2016 compared to airfares purchased in 2014 and 2015.

The comparison looked at the purchase of tickets through Flight Centre’s suite of travel brands, and suggests that Australian travellers are seeing great value from the price of their air tickets, according to the latest 4D FOCUS – Australian Aviation and Airfare Analysis.

But it doesn’t stop there, with airlines putting more effort into improving the overall customer experience inflight, from Wi-Fi to better aircraft and cabin seats.

Flight Centre Travel Group’s Managing Director Graham Turner said it’s been positive to see airfares work to be so competitive.

“Airfares are still extremely affordable for domestic and international travel and I think despite some of the distractions we’re seeing globally – the corporate and leisure travel industry will continue to perform throughout the rest of 2017,” Turner said.

The report highlighted that since 2014, Qantas has upgraded 100 Airbus A330 and 737 aircraft with new interiors, opened new lounges around the country and is also on the verge of introducing free high-speed Wi-Fi in the domestic market.

Meanwhile, Virgin Australia has kicked off its own three-month trial of inflight Wi-Fi on its Boeing 737-800 aircraft.

John Simeone, Qantas’ Head of Business and Government Sales, said in the report, “This year, we’re entering a new era with the introduction of free high-speed Wi-Fi in the domestic market and the arrival of Qantas’ first Dreamliner, opening up breakthrough routes like Perth – London.”

Globally, Australia has the seventh largest domestic travel market with around 1.5 million seats available weekly.

The Australia business traveller, for reference, takes on average over 3.8 trips every year.

The report highlighted some key points about Australian aviation:

Domestic Corporate Travel

Domestic Economy Class price changes for tickets purchased through Flight Centre’s corporate travel brands ranged from minus seven per cent to a four per cent increase on key routes
Business travellers flying the BNE – MEL and the BNE – PER routes have enjoyed the biggest savings with average purchase price of tickets on both routes falling by seven per cent
Corporates travelling on the CBR – SYD and the MEL – SYD routes struck out on any savings with the average purchase price of tickets increasing up to four per cent from 2015 – 2016

Domestic Leisure Travel

From 2015 to 2016 the average price of domestic Economy Class leisure fares purchased through FCTG’s leisure division fell by six per cent
Economy Class price changes for leisure tickets purchased through FCTG’s retail brands ranged from -10 per cent to a one per cent increase
Big ticket savings for leisure travellers were highlighted on the BNE – SYD route with a 10 per cent reduction on the average purchase price, while tickets purchased through FCTG by leisure travellers flying on the HBA – MEL and the BNE – PER routes dropped by nine per cent
It was only on the MEL – SYD route, where capacity is tightly controlled by airlines due to the high volume of traffic, where travellers didn’t see a price reduction but rather wore a one per cent increase on the average price of purchased fares.

Felicity Burke, General Manager, 4th Dimension Business Travel Consulting, said the outcome of the latest research painted an extremely positive picture for companies as well as holiday travellers that have been booking their travel through Flight Centre Travel Group’s brands.

“Not only are FCTG’s corporate customers purchasing extremely well-priced fares but they are also getting all the additional value that comes with booking through a travel company such as 24-hour global traveller support, access to experienced consultants that manage their company’s travel policy, travel spend and activity reporting capabilities as well as access to our online booking technology,” Burke said.

“And the really good news is that this experience is about to get even better for travellers with the likes of Virgin Australia and Qantas both acutely focused on enhancing the traveller experience to grow market share and increase loyalty, particularly in the corporate sector.”

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4th Dimension flight centre flight centre travel group graham turner Skroo Turner