Intercontinental airfares originating in Europe are decreasing in early 2024 but domestic and regional European airfares are up three per cent while hotel rates continue to rise globally, according to business travel consultancy Advito's quarterly price index report.
The index, which compares historical pricing data with future shopping data for the current quarter, showed that intercontinental economy airfares in the first quarter of 2024, originating from Europe, are down nine per cent year over year, while business class fares are down six per cent YoY.
Domestic and regional European airfares are up three per cent in both business and economy class, YoY.
Globally, Advito noted that frequencies on North Atlantic routes have had "solid growth,” while the only regions with YoY increases in intercontinental airfares for the first quarter are Africa, where both business and economy fares are up one per cent YoY, and Latin America, where economy fares are up one per cent – though business fares are down two per cent.
Advito notes several hotel markets around the world are seeing "significant" rate increases because of a combination of inflation and strong, though slowing, leisure travel demand, with global average daily rates up seven per cent YoY in the first quarter. However, average daily rates are down compared to 2022.
On a regional basis, the biggest YoY average daily rate increases for the first quarter of 2024 are in Latin America and Europe, each up 11 per cent, according to the report.
ADRs are up four per cent in Asia, up three per cent in both North America and Africa and up one per cent in both the Middle East and the Southwest Pacific.