Leisure & corporate travel hits 4-year high, FCM Consulting data shows

FCM Consulting’s trend report for Q4-2023 has revealed that both leisure and corporate travel are set to surpass the annual travel capacity in 2018 and 2019.

The report, which cites data from Cirium, also highlighted a key global trend that is set to continue for 2024 – more seats with fewer flights. The first half of the year is forecast to offer 3.5 per cent more seats, and 5.6 per cent less flights than the first half of 2019.

“This is a result of fleet configuration changes and shifts in schedules to meet the demand,” APAC director, FCM Consulting, Felicity Burke, said.

“When carefully planned, this will be favourable to airline operating costs, staffing, airport slots and airport costs.

“More seats and less flights will mean less scheduled choice for passengers, but it will contribute to the improvement of travel times, and the environmental impact of travel.

Six different airlines have brought aboard new business class offerings over the past four years, providing new pricing and inclusions options for travellers, including, for example, through Business Luxe and Business Lite.

Jet fuel costs continue to impact on travel costs, and while the last quarter of 2023 saw the lowest prices of the year at USD$102 ($156 AUD) per barrel, that was somewhat short lived and jumped to USD$107 ($164 AUD) per barrel in January 2024.

The report highlights Q4 as a close to a milestone 2023 with corporate travel at its busiest in over four years.

Q4-2023 closed a milestone year, seeing corporate travel the busiest and least interrupted in over four years. Business travellers became more confident than in previous years and are planning trips in 2024 to both grow their business, and connect with clients and colleagues,” Ms Burke said.

“Corporates became more confident than in previous years and are planning trips in 2024 to grow
their business, connect with client and colleagues.”