New data from FCM Travel, the business travel division of Flight Centre Travel Group, has revealed a welcome drop in outbound economy airfares from the UK during the third quarter of 2024.
Compared to the same period in 2023, airfares decreased by an average of 5-10%, providing cost-effective solutions for business travellers.
The sharpest decline was seen in July, with UK economy fares falling 15-20% compared to the previous year. August and September also saw reductions of 2-4%. By comparison, economy fares in Germany and France, two of Europe’s largest economies, dropped more modestly, by 1-3% over the same period.
Andy Hegley, Managing Director Europe at FCM Travel, welcomed the trend: “The 5-10% drop in economy airfares from the UK is positive news for business travellers, signalling a more cost-effective period for corporate travel planning.”
However, Hegley also noted that premium ticket prices increased by an average of 3%, highlighting the importance for businesses to review travel policies to take advantage of the changing market dynamics.
Key routes see significant decreases
The largest reductions in airfares were seen on routes to Asia, with flights from the UK to Taiwan dropping by 40-45%, Japan by 35-40%, South Korea by around 35%, and China by 30-35%. The unlocking of flight capacity to key Asian hubs is seen as a primary factor in driving down prices, making these destinations more affordable for business travellers.
Hegley commented on the shift: “The unlocking of capacity to key Asian hubs is really positive and is helping to drive down airfares for our business customers.”
Challenges ahead
While the drop in airfares is good news for businesses, Hegley warned that the travel industry still faces challenges, including rising fuel costs, labour shortages, and geopolitical conflicts. Despite these pressures, FCM Travel is committed to helping businesses optimise their travel budgets and navigate the evolving global travel landscape.
As the year progresses, businesses are advised to stay updated on travel trends and adapt their policies to capitalise on the current favourable conditions.