Global business travel demand “peaked” in the third quarter yet appears set to continue growing into 2025, spurring air carriers to increase capacity, according to FCM Consulting’s Global Quarterly Trend Report, released Wednesday. Still, some corporate air, hotel and car rental rates slipped during the quarter even amid demand increases as inflation slowed, according to the travel management company.
The average booked economy-class airfare across more than 380 city pairs worldwide in 2024 through August was $507, according to FCM, down $16 from the same period in 2023. The average business-class airfare in the same timeframe in 2024 increased about 6 percent year over year, about a $137 hike.
Noting the record-high August global load factor of 86.2 percent, FCM projects global air capacity to increase 1.8 percent year over year in the first half of 2025, reflecting a forecast of “ongoing demand growth” in the corporate market.
“It’s been an exciting time for business travel with airlines experiencing record-setting load factors and passenger demand on the rise yet again,” FCM Consulting Americas head Ashley Gutermuth said in a statement. “Furthermore, the increase in seat capacity and drop in economy airfare are welcome signs for corporate travelers that continue to leverage air travel to fuel business growth.”
The average daily hotel room rate logged by FCM’s corporate clients in the third quarter in North America increased $17 to $267 and in Europe increased $10 to $209. The average rate in Asia fell $6 year over year to $166. FCM projected the global average corporate daily rate in 2025 would increase 2 percent to 4 percent even as inflation eases, thanks to “operating costs and demand.”
The global average car rental rate booked in the third quarter by FCM’s corporate clients dropped notably, by 30 percent year over year to $52. The booked third-quarter rate in the U.S. also was $52, according to FCM.
