“Studies have shown that business travel correlates to economic growth. We are seeing corporate travellers take advantage of being able to combine both business and leisure travel. There is also a real business focus on face-to-face meetings and collaborations, given the evidence that in-person meetings are the most productive way for businesses to operate. 2024 looks to be positive for businesses that travel,” said Bertrand Saillet, Managing Director, FCM Travel Asia.
For context, FCM is a global travel management company with a presence in over 100 countries. As part of the ASX-listed Flight Centre Travel Group, FCM provides market-wide rates, added-value benefits, and tech solutions to meet clients’ business travel requirements.
Economic Impact and Travel Priorities
According to FCM Travel Asia, despite economic uncertainties, business travel remains a top priority. Additionally, lower airfares in 2024 are expected to cater to budget-conscious travellers. The company also states that a Global Business Travel Association survey in October 2023 revealed that around 70% of corporate travel buyers anticipate maintaining or increasing their travel budgets in 2024.
International Demand and Fare Projections
FCM points out that international travel demand is forecasted to continue into 2024, with expected fare increases ranging from 3-7%. Notably, Asia has witnessed a rise in economy class fares by 21% and 17% in business class fares year to date 2023 versus 2019. Data also shows that various routes, including Mumbai to London and Shanghai to Singapore, have experienced fare hikes.
Also, Shanghai Hong Qiao Airport saw a 24% increase in fares and Shanghai Pudong Airport saw a 20% spike..
Visa Requirements Eased
FCM Travel Asia highlights that China, the world’s second-largest economy, has implemented unilateral visa-free travel for passport holders from certain countries. Additionally, agreements on mutual visa exemption with over 150 countries have been signed, allowing citizens to travel to China without a visa.
Rise of Bleisure Trips
According to FCM Travel Asia, bleisure travel is expected to continue its upward trend in 2024. As normality returns, flight capacity grows, and face-to-face collaboration remains crucial, employees are seizing the opportunity to extend business trips for leisure purposes.
Technology for Smoother Travel, business travel
FCM says that technology will play a vital role in enhancing the traveller’s experience and providing data-driven insights and real-time updates.
For example, FCM’s AI assistant, SAM (Smart Assistant for Mobile), keeps travellers informed about flight delays and suggests nearby lounges.
Increased Focus on Sustainability
FCM Travel Asia predicts that this year, as sustainability gains prominence, more companies will be striving for net-zero operations. FCM Consulting has partnered with CAPA – Centre for Aviation, providing data on sustainability parameters. FCM aims to provide companies with a scorecard that assesses their air travel program and preferred airlines on various sustainability metrics.
However, regardless of the travel management companies chosen, FCM states that enterprises can receive a scorecard to understand their travel impact’s sustainability. FCM emphasises the need for deeper and more accurate analyses with measurable benefits as companies become more astute on sustainability matters in 2024.
