Search Results forairfare
CAA to issue temporary permits to cut airfares on domestic routes in Oman
A breathtaking view from Al Amirat Heights overlooking Muscat, Oman, during the blue hour Proposals have been invited from eligible national and international air carriers, charter operators, and leasing companies to provide temporary domestic air services on these routes between July 1 and August 31 and December 1 and January 31. To enhance air transport capacity to meet increased demand during peak seasons, ensure affordable fares by reducing price surges due to high demand and support Salalah’s tourism sector by improving accessibility for residents and tourists. As informed by a news report in Oman Daily Observer. The interested operators must meet the following requirements, such as a valid Air Operator Certificate (AOC) (Omani or international), proven operational experience and financial stability, and compliance with Oman’s safety, security, and environmental regulations, adequate passenger and third-party insurance and liability coverage. The aircraft must have a capacity of 100 to 200 seats (to balance demand and airport capacity), Oman CAA’s technical and safety standards. The last date to submit applications is April 17, 2025, and the evaluation will be based on operational capability and fleet suitability, proposed fare structure and service quality, past performance, and financial reliability. The slot coordination with Muscat, Sohar & Salalah Airports is mandatory, besides minimum service reliability, transparent pricing, and passenger rights compliance.CAA said it will conduct regular audits on performance and non-compliance (safety violations, cancellations, etc.) may result in permit termination. The so-called exorbitant airfares on the Salalah-Muscat sector have always been a point of contention among passengers, especially those traveling with families during the peak Khareef months. Last year, Oman Air and SalamAir started implementing the fixed-fare ticket policy, aimed at encouraging domestic tourism in Dhofar, especially during the Khareff season. According to the National Center for Statistics and Information, around 70 percent of the Salalah visitors traveled by road, mainly to cut travel costs. These airfares force visitors to Salalah to take to the road, and the long drive on the 1,000-km stretch has often turned out to be fatal for some motorists and their families. Overspeeding, fatigue, and low visibility during rain are often cited as the main reasons for these unfortunate incidents. During the khareef season, the return economy class ticket was at RO54 for citizens
ACCC confirms soaring domestic airfares amid reduced competition
Since regional airline Rex went into administration in July 2024, domestic airfares in Australia have surged, driven by reduced competition. The Australian Competition and Consumer Commission (ACCC) reported a 13.3% increase in average airfares across all major city routes from July to September. With Rex’s exit, Qantas Group and Virgin Australia now fly 98% of domestic passengers, creating a duopoly in the market. The Impact of Rex’s Collapse Rex’s decision to cease domestic jet operations has left a significant void in the market. The September Bureau of Infrastructure and Transport Research Economics (BITRE) data shows notable fare increases since Rex’s departure. The number of available seats on domestic flights between metropolitan cities has dropped by 6% since July, leading to fuller aircraft, while passenger numbers have remained stable. Sharp Fare Increases: Melbourne-Adelaide up 95% Melbourne-Gold Coast up 70% Canberra-Melbourne up 54% ACCC Commissioner Anna Brakey highlighted that the recent spike in airfares correlates with a less competitive domestic airline sector following Rex’s exit from 11 of the 23 services between metropolitan cities. Seasonal and Additional Pricing Pressures While seasonal peaks in air travel due to major sporting events and school holidays typically occur in September, additional pricing pressures emerged this year. Passengers no longer have access to the lower fares that Rex offered, and reduced seating capacity has contributed to higher airfares. Concentration in the Airline Industry Currently, around 90% of domestic routes are served only by two major airline groups, with the remainder served by just one. This represents a dramatic shift from earlier in the year when Rex and Bonza were still operating jet services when about half of the domestic routes were served by at least three airline groups. ACCC’s Concerns: The exit of Rex as a third competing airline may significantly impact the domestic aviation sector. The industry’s concentration could persist due to barriers to entry and growth, including aircraft fleet supply chain issues and pilot and engineer shortages. The Importance of Competition Data from the Federal Government’s competition task force in January demonstrated that adding more competitors on a route can dramatically slash airfares. According to Dr. Andrew Leigh, the Assistant Minister for Competition, airfares average: 39.6 cents per kilometre on routes with one carrier 28.2 cents on routes with two carriers 19.2 cents with three carriers This highlights how competition significantly influences airfare pricing, with prices dropping further with four or five competitors on a route. The Need for More Competition: Aviation competition connects Australian cities and the world. Many Australians still suffer from a lack of competition. For example, a resident of Darwin might find it cheaper to fly to Singapore than to Sydney despite the international flight being longer. Conclusion The collapse of Rex has led to higher airfares and reduced competition in Australia’s domestic airline market. The ACCC’s findings underline the importance of competition in maintaining affordable and reliable air travel for consumers. The future of the domestic aviation sector depends on the emergence of new competitors to challenge the current duopoly and drive down prices.
Airfares climb up to 25 pc for Diwali, Onam festival season travel
Representative Image Airfares for key domestic routes increased by 10-15 per cent during the festival season while flights to Kerala cities saw a 20-25 per cent rise. The analysis identified significant fare hikes on non-stop flights like Delhi-Chennai and Mumbai Calicut. Some routes, however, experienced fare reductions by up to 27 per cent, driven by soaring demand for Diwali and Onam travel. Airfares are heading northwards for the festival season, with the average one-way ticket price on key domestic routes being 10-15 per cent more for Diwali and 20-25 per cent higher for certain flights to Kerala cities for Onam, according to an analysis. An analysis done by travel portal ixigo for media showed that average one-way economy class fare for non-stop flight on Delhi-Chennai route during October 30-November 5 period is 25 per cent higher at Rs 7,618. This is in comparison to the fare during November 10-16 period last year. For the given comparison period, the ticket price is 21 per cent more at Rs 5,162 on Mumbai-Hyderabad route and 19 per cent higher at Rs 5,999 and at Rs 4,930 on Delhi-Goa and Delhi-Ahmedabad routes, respectively. On certain other routes, fares are higher in the range of 1-16 per cent, as per the analysis. Ixigo’s Group Co-CEO Rajnish Kumar said travel demand for Diwali is on the rise with airfares higher than last year. “Popular routes like Delhi-Chennai, Mumbai-Bengaluru, and Delhi-Hyderabad are seeing average one-way fares ranging between Rs 4,000-5,000, marking a 10-15 per cent Y-o-Y increase as the festival approaches,” he said. While the ticket price for Mumbai-Ahmedabad flight has declined 27 per cent to Rs 2,508, the fall is 25 per cent at Rs 4,890 for Mumbai-Udaipur flight. Source: PTI
Surging demand drives Trevolution Group’s H1 2024 airfare sales to USD 639 Million
Trevolution Group, operating ASAP Tickets, Skylux Travel, Oojo, Triplicity, Dreamport, and other major travel brands, has reported commercial results for the first half of 2024, yet again surpassing record high volumes in airfare sales. During the first six months of 2024, the Group’s total gross bookings reached close to 639 million USD, stemming from over 510,000 sold tickets across its travel brands. This indicates a 20% increase in processed ticket volumes compared to the same sales period last year and a major 129% growth in comparison to the pre-pandemic years. Along with strengthening its corporate travel management segment and introducing Dreampass, a new generation travel super-app, Trevolution Group rapidly continues its global expansion with new advanced travel services launching in the second half of 2024. Gross travel bookings, which refers to the total dollar value, generally inclusive of taxes and fees, amounted to 638.74 million USD, indicating a 6% increase compared to the six-month period in 2023; The number of unique tickets issued reached 510,436, increasing by 20% vs. H1 2023; Economy class has shown a stable increase, going up in demand by 22%; The share of round-trip tickets amounted to 70% of all tickets sold; The number of auxiliary products and services increased by nearly 26% vs. the first half of 2023. Being a global travel market leader for over two decades, Trevolution Group has developed broad expertise in the Visiting Friends and Relatives (VFR) segment. The VFR form of travel is also strongly indicated by its most popular travel destinations, with the United States, India, the Philippines, Italy, and Nigeria being the top five most-visited countries so far this year. Compared to 2023, ticket sales to Italy have grown significantly, by 99%, and to India by almost 37%, while the US has shown a 24% growth, and Nigeria – another 17% increase, surpassing the United Kingdom, which was listed among the top five travel destinations in the same period last year. Likewise, Canada has emerged among the fastest-growing destination countries in the first half of 2024, with a rapid 90% increase in flights purchased by the Group's international customers. A similar pattern was observed when defining the leading departure countries, where the United States, Canada, the Philippines, and India traditionally emerged among the most popular locations from which travelers flew. Top Destination Countries % of change H1 2024 vs. H1 2023 United States 24% Philippines 2.5% India 37% Italy Canada 99% 90% Top Departure Countries % of change H1 2024 vs. H1 2023 United States 12% Canada 67% India 66% Philippines 47% Similarly to the previous year, most air passengers, or 90%, chose to fly Economy class, and one in every 11 travelers flew Business class in the first half of 2024. In addition to this, round-trip was the most frequently selected trip type with an average of 2.3 times more tickets sold compared to one-way trips. It also indicated an almost 13% increase in sales, while the share of one-way tickets went up by over 45%. Also, along with the global inflation that is gradually slowing down, the average ticket price has decreased slightly during the first six months of this year, with Economy class showing a 13% fall compared to last year, and Business class remaining at almost the same level where travelers are less sensitive to airfare fluctuation. Meanwhile, United Airlines, Turkish Airlines, Philippines Airlines, American Airlines, and Qatar Airways were the most-used air travel providers that Trevolution Group's customers gave preference to in the first six months of 2024. However, Lufthansa and British Airways showed the most significant increase in global flight sales, surging by 99% and 73.5% vs. H1 of 2023. Airfare Ticket Type H1 2024 vs. H1 2023 Economy Class Business Class 22% 4% Trip Type H1 2024 vs. H1 2023 One Way Round Trip 45% 13% According to the latest sales data, along with the returning travel confidence, the average advance purchase period continues to increase to the pre-pandemic levels when travelers would plan their trips further ahead in order to secure better deals. Thus, in the first half of 2024, almost one-third of airline passengers booked their flights over three months in advance, compared to 19% back in 2022 and 49% in 2019. Meanwhile, only 16% chose to secure their travel plans up to 10 days ahead, almost 10% bought airfare tickets 11 to 20 days in advance, and another 8.5% purchased their tickets 20 days up to a month in advance, showing a similar travel-booking pattern to the first six months of 2023 where one-third of the flights were booked over 90 days in advance and another 33% were last-minute bookings up to 30 days prior to departure. Meanwhile, the average length of stay abroad has decreased by 1.5 days in H1 of 2024 vs. 2023, with 25.5 days being the average period customers currently spend abroad enjoying leisure tourism or visiting their friends and relatives. Advance Purchase Days % of Total Tickets in H1 2024 0-10 11-20 21-30 91+ 16% 10% 8.5% 33% “Despite the global economy struggles, we have experienced a stable 20% increase in ticket volumes and have surpassed not only last year's figures but also the pre-pandemic levels. As we continue to develop and improve our extensive travel product portfolio to increase customer satisfaction, we are now focusing our efforts on presenting a new, exciting product to the market – an all-in-one travel super-app Dreampass that will enhance customer engagement even more,” Alex Weinstein, the founder of Dyninno Group of Companies commented. Trevolution Group, which operates International Travel Network, ASAP Tickets, Skylux Travel, Dreamport, Oojo, and other travel brands, has established itself as the market leader in the travel business, specializing in the Visiting Friends and Relatives segment. Over 840,000 unique airline tickets and vacation packages were sold by the companies under the Trevolution Group brand in 2023, making it the fourth-largest airline ticket consolidator in the US.
First Class Airfare Without the First Class Price Tag
When you hear first-class travel, you can only imagine luxury and comfort. Spacious lie-flat seats, gourmet meals, attentive service - it all sounds like a dream come true. Ultimately, the cost of first-class travel haunts a traveler more than the satisfaction of all that comfort or luxury. It is well known that luxury always comes with a steep price tag, so finding a oferta de vuelo barato en primera clase is like a far-fetched dream. The Charm of First-Class Travel It is not a magic trick that can get you a first-class flight ticket at a cheaper price. Instead, attention should be paid to some important factors that facilitate the booking of a cheap first-class ticket. Here are the factors that can make it actually happen: Loyalty Pays Off Loyalty always pays off in every other instance, including when you book a cheaper first-class ticket. A frequent flyer program can give you access to premium travel services. Become a member of the loyalty program of your preferred airline(s) and earn points or miles diligently. The points can be redeemed for upgrades to first class, resulting in significant savings when compared with an outright purchase. Bid for Bliss Sometimes airlines conduct auctions for upgraded seats. Airlines randomly select a few passengers who have already booked economy seats and offer them an upgrade to first class. However, if you want that to happen, you should keep your eyes open and check your mail more often. Set a realistic maximum bid based on the typical fares for the route to avoid overspending. With a winning bid, you will be able to snag a first-class seat at a fraction of the original cost. Last-Minute Magic While getting a first-class air ticket at an economical price isn't magic, sometimes you can be hopeful that magic will occur when airlines have unsold first-class seats closer to departure. Make sure you check in early and politely inquire about upgrade opportunities. There are times when airlines are willing to offer significant discounts in order to fill vacant seats rather than leaving them unfilled. The Power of Negotiation When money is not an option, negotiation is definitely an option. So don't be shy about negotiating. Although direct negotiation is less common, it can sometimes be successful. When you are a frequent flyer with good standing or have a compelling reason (e.g., celebrating a special occasion), you should politely inquire about upgrade possibilities and price negotiations. Aside From First-Class There are chances that you can obtain a first-class air ticket at a reduced price, however, there is no guarantee of this, so it is not a bad idea to seek a middle ground between economy and first class rather than being on the fence and not getting first-class or not at all an air ticket at all. It is here that Económicos Premium vuelos comes into the spotlight as a compelling alternative. Compared to economy class, premium economy seats generally provide more legroom, wider seats, and enhanced amenities. In addition, premium economy passengers may have access to airport lounges and priority boarding. Even though it is not quite first class, it offers a significant upgrade from the standard economy at a more affordable price. Final Thoughts Traveling in first class within a budget is quite an achievement. You see, traveling is not just about reaching a destination, but also about experiencing the journey throughout your journey. This is why it matters whether you are traveling in economy class, premium economy class, or first class. So, if you can make it happen to book a first-class ticket without paying the first-class price tag, then it is always a good idea to take the chance.
Cirium’s airfare data shows increases in economy airfares in 2023 in the U.S. and Europe with a decrease in transatlantic business class fares
Cirium, the aviation analytics company, analysed airfare trends for 2023, using Cirium FM Traffic. Economy airfare has generally increased since 2023 in North America and Europe, but lower than the U.S. inflation rate. “While airfare has risen in nominal terms in U.S. and Europe, consumers will appreciate that the increases are less than other consumables,” said Jeremy Bowen, CEO of Cirium. “Cirium’s data teams will continue to monitor the impact on fares of increased capacity in the market, despite challenges related to the availability of aircraft, be it due to groundings, engine issues, or supply chain constraints.” Cirium analysed airfare for the U.S. domestic market (including 13 U.S. airlines), intra-European travel, and the Transatlantic market. The data is non-directionally averaged, in U.S. dollars, not including taxes and fees. Unless otherwise noted, the fares indicated are for economy class. U.S. Domestic Airfare The average U.S. domestic airfare by the 13 airlines was $179.25 in 2023, an increase of 9% since the 2019 average of $164.63. Notably, Cirium also analyzed changes in the U.S. Consumer Price Index from data provided by the Bureau of Labor Statistics, where the inflation rate between 2019 and 2023 was 19%. Accordingly, airfare has risen less than other consumables — 10% lower in real terms. Beginning in August 2023, airfare decreased by approximately 4% compared to the equivalent months in 2022. Fares in December 2023 were 9% lower than December 2022. The U.S. domestic airfare data includes Alaska Airlines, Allegiant Air, American Airlines, Avelo Airlines, Breeze Airways, Delta Air Lines, Frontier Airlines, Hawaiian Airlines, JetBlue, Southwest Airlines, Spirit Airlines, Sun Country Airlines, and United Airlines. Intra-European Airfare Fares for flights within Europe are 8% higher than in 2022 and 12% higher than in 2019. The average airfare in Europe in 2023 was $104.58 (approximately €96) compared to $93.17 (approximately €85.70)—in each case excluding taxes and fees. Transatlantic Airfare The average transatlantic economy fare in 2023 was $435.17, compared to $410.75 in 2022 and $381.08 in 2019. This is an increase of 14% in 2023 compared to 2019. However, Cirium data indicates that transatlantic business class airfare is 3% lower compared to 2019, with December 2023 business class fares 7% lower compared to December 2019. The average business class fare in 2023 was $1,845. Increase in Transatlantic Capacity Airlines increased capacity in 2023 compared to 2022 and are poised to do the same for summer 2024, according to Cirium Diio Mi schedule data. The transatlantic carriers increased seats flown by 18% in 2023 compared to 2022. And, in the peak summer month of July 2024, the transatlantic carriers will fly almost 375,000 more seats compared to July 2023, with Air France, Delta Air Lines, and Lufthansa among the carriers increasing capacity. This action may reduce airfare on select routes.
India sets new milestones in Trevolution Group’s Annual Airfare Sales
Representative Image Trevolution Group, the global market leader operating Asap Tickets Skylux Travel, Dreamport, Oojo and other travel brands, reports selling over 86,780 airline tickets to and from India in 2023, thus reaching record volumes in airfare sales and indicating a stable 17% growth across the market compared to the previous year. This amounted to 143 million USD in gross bookings, or over 12% of the group's total gross profit during 2023, exceeding one billion USD for the first time. Reported business results rank India as one of the top four leading destinations for international airline passengers traveling across leisure and business tourism, as well as the rapidly growing visiting friends-and-relatives (VFR) segment. Following the busy holiday season, Trevolution Group's airfare sales results in India have exceeded pre-pandemic levels, marking 2023 as the most profitable year to date. India has historically been among the most popular travel destinations for American passengers, and along with the country's tourism sector recovery, last year has seen a continuous increase of its inbound tourism volumes. However, the most significant growth of over 130% can be observed in India's outbound travel sales, indicating this market’s rapid growth and economic development. International businesses are booming, and India has become a major player in today's global economy. As a result, the surging demand for regular transpacific flights shows a progressive pattern for 2024 and beyond. Total Gross Bookings Change 2023 vs. 2022 Outbound Inbound 132% 7% According to the Directorate General of Civil Aviation (DGCA), the Indian air travel market is one of the fastest-growing globally with approximately 152 million domestic passengers in 2023. And even though India's global tourism promotion budget for 2024 has decreased, the country still aims to promote itself on the global stage and will put an even greater emphasis on the domestic travel sector, which Trevolution Group's services also contribute to largely. Next to Delhi and Mumbai, Hyderabad also played a crucial role in India's regional development throughout 2023. Over the past years, it has evolved into a thriving technology industry center and tourism hub, and it is one of the fastest developing metropolitan cities in India. That is also reflected in Trevolution Group’s latest business results, where Hyderabad contributed to 13% of the total flight tickets booked to India and 20% of the total flights sold from the county's largest airports. It is one of the strongest driving forces for India's economic growth, and the emerging VFR segment constitutes a significant part of the national travel business, especially across inbound tourism. Top Destination Cities % of All Tickets in 2023 Mumbai Delhi Hyderabad 20.49% 29.86% 13.22% Top Departure Cities % of All Tickets in 2023 Mumbai Delhi Hyderabad 19.96% 26.47% 19.92% Class of Travel The growing demand for international travel to and from India is also reflected in the substantial increase in sales across both Economy and Business class flights. That resulted in a high 161% growth in flights booked from the largest airports across India in Economy class and an even more significant 276% increase in Business class compared to last year's commercial results. Meanwhile, the demand for inbound Economy tickets has stayed stable at the same level as it was throughout 2023. However, Business class saw a major leap of 137%, indicating the return of the business travel, as well as the growing demand for a higher level of comfort among international air passengers. Inbound Ticket Type Ticket Change 2023 vs. 2022 Economy Class Business Class 1% 137% Outbound Ticket Type Ticket Change 2023 vs. 2022 Economy Class Business Class 161% 276% Additionally, the majority, or 80.5%, of all tickets purchased to India in 2023 were round-trip tickets. With a 13% increase in the total number of return flights booked to India's airports, this pattern has not changed since the previous year and is another indicator of the emerging VFR travel segment. It is especially popular among more than 4.4 million Indian Americans with strong ties to the homeland and who are booking most round-trip tickets from the US to India. Likewise, the share of one-way tickets has also stayed at nearly the same level and showed a 12% increase in the total inbound ticket sales compared to 2022. Inbound Trip Type Ticket Change 2023 vs. 2022 One Way Round Trip 12% 13% Meanwhile, the proportion of outbound return tickets was at 35.5% in 2023 compared to 28% in 2022, and the total number of round-trip flights sold last year went up by 245% (vs. 141% increase in one- way flights), which accentuates a rapid market growth and highlights the ongoing return of international leisure travel among Indian customers. Outbound Trip Type Ticket Change 2023 vs. 2022 One Way Round Trip 141% 245% As the airline industry returns to its pre-pandemic capacity and the price of aviation fuel remains stable, the growing airfare prices had slowed down in 2023 making international travel more affordable and available. Thus, when it comes to the average ticket price, Business class tickets to India decreased by 46%, while economy class fares showed a 11% drop. A similar pattern was also observed across the airfare costs from India with 42% cheaper flights in Business class and -10% in Economy class. As a result, air passengers had higher ability to purchase additional auxiliary products, in-flight services and upgrades with Ticket Protection being the top selection last year. Booking Window and Terms Almost one-third, or 32.3%, of all global travelers flying to India in 2023 purchased their tickets over three months prior to the departure date. This number has increased slightly since the last year when 28% of Trevolution Group's passengers would book their flights over 90 days ahead. Such a pattern indicates that the travel industry has now finally recovered to its pre-pandemic state, and people feel more confident again in making their travel plans further in advance, especially when it comes to VFR travel. Thus, only 13.7% of all inbound flight tickets were purchased up to 10 days before the trip in 2023, compared to 12.8% in 2022, while 8.8% (vs. 8.2%) were purchased up to 20 days in advance and 8.6% (vs. 8.4%) of all flights to India were booked up to a month ahead. Inbound Advance Purchase Days % of Total Tickets in 2023 0-10 11-20 21-30 91+ 13.7% 8.8% 8.6% 32.3% Meanwhile, according to the Group's ticket sales from India, these passengers tend to make more last minute decisions and, therefore, only less than one-fifth or 19% of all travelers secure their tickets over 90 days in advance (compared to 21.5% in 2022), while 17.4% choose to do it up to 10 days in advance (compared to the previous 15.7%), 13% (vs. 13.5% in 2002) did it up to 20 days in advance and 10.7% (vs. 11%) of passengers would do it up to 30 days ahead of their upcoming trip. The growing number of tickets purchased only a week to a few weeks ahead also point to the returning travel confidence and the strong presence of business travel with more urgent flights. Outbound Advance Purchase Days % of Total Tickets in 2023 0-10 11-20 21-30 91+ 17.4% 13% 10.7% 19% In addition to that, the number of short-term bookings from India has decreased in both 2023 and 2022, and the average length of stay abroad is now almost three months or 87 days, and it is slightly higher for Economy class passengers with 92 days vs. 82 days for Business class. This indicates that travelers still tend to make up for the two pandemic years and thus feel more confident about spending more time abroad now that the industry has fully recovered, especially when visiting their friends and family or working remotely. Meanwhile, for the Group's passengers coming to India, this period is three times lower, with 31 days or an average of one calendar month for Business and Economy class in both 2023 and 2022, which is an average length of stay abroad for leisure travel. Destinations Following the previous year's pattern, the vast majority of visitors coming to India in 2023 originated from the United States, Canada, United Arab Emirates and United Kingdom and choosing Mumbai (20.5%) and Delhi (30%) as the main arrival airports. Similarly, the top five departure cities to India remained New York, San Francisco and Chicago, followed by Dallas and Washington, and most inbound passengers choose to fly with Qatar Airlines, Air India and Turkish Airlines and Emirates. Top Departure Countries % of change 2023 vs. 2022 United States 10% Canada 4% United Arab Emirates 135% United Kingdom 284% Meanwhile, the majority of air travelers starting their journey from India in 2023 preferred such popular global destinations as the United States, Canada, United Arab Emirates and Thailand, as well as flew domestically within the country. Thus, New York, San Francisco, Chicago, Washington and Dallasremained the top destination cities, with Air India, Emirates and Turkish Airlines as the top three air carriers of choice. As the proportion of the America-based Indian community is continuously growing, this pattern is again heavily influenced by VFR tourism being one of the main factors driving frequent flights to India and back to North American cities, as well as vice versa. Top Destination Countries % of change 2023 vs. 2022 United States 171% Canada 18% United Arab Emirates 295% Thailand 245% “India continues to be a cornerstone of Trevolution Group's success with our record-breaking sales signalling a stable 17% growth in the market. Historically robust, this market is poised for further expansion, given an increasing Indian diaspora in the US and Canada that is the driving force behind the growth of the VFR sector. Recognizing the untapped potential in this market, we are diligently developing an all-inclusive travel app to better serve our clientele. Additionally, we are dedicated to establishing a new corporate travel vertical, called Triplicity, recognizing the need for tailored solutions in this sector.” Alex Weinstein, the Founder of Dyninno Group commented. Trevolution Group, which operates International Travel Network, ASAP Tickets, Skylux Travel, Dreamport, Oojo, and other travel brands, has established itself as the global market leader in the travel business, specializing in the visiting friends and relatives' (VFR) segment. Over 840,000 unique airline tickets and vacation packages were sold by the companies under the Trevolution Group brand in 2023, making it the fourth-largest travel consolidator in the US.
Trevolution Group reports record numbers in Annual Airfare Sales
Trevolution Group, the global market leader operating ASAP Tickets, Skylux Travel, Dreamport, Oojo and other travel brands, has announced commercial results for 2023 with record volumes in airfare sales. Within last year, the Group’s total gross bookings reached a new milestone of over one billion USD, exceeding 2022 sales by 26% and resulting in over 843,000 unique tickets sold across economy and business class flights. Along with launching direct operations in the UK and the Philippines as well as strengthening its positions in already established markets, last year, Trevolution Group also implemented several new initiatives and innovations, from investing in regular sustainable aviation fuel (SAF) purchases to introducing NDC aggregated air travel services. Gross travel bookings, which refers to the total dollar value, generally inclusive of taxes and fees, amounted to 1,174,540,000 USD, indicating a 26% increase from the previous year; The number of unique tickets issued reached 843,486, increasing by 16% 2022; The share of one-way tickets amounted to 28% of all tickets sold and grew by 25%; The number of auxiliary products and services increased by over 22% last year. For two decades, Trevolution Group has been a global travel market leader with extensive expertise in the Visiting Friends and Relatives (VFR) segment, which has shown strong growth in the past few years. It is also indicated it the Group's most popular travel destinations, with the US, India, the Philippines, Nigeria, and Italy being the most frequently visited countries in 2023. Compared to the previous year, airfare sales to Italy have grown by 85% and to the United States by 40%, while Nigeria has shown a 17% growth. Meanwhile, China has emerged as the fastest-growing travel destination, exceeding 2022 flight sales by 89 times since fully reopening its borders to international visitors and gradually returning to the pre-pandemic tourism levels. A similar pattern was observed when defining leading departure countries where the United States, Canada, the Philippines and India also emerged among the top locations global travelers flew from. Top Destination Countries % of change 2023 vs. 2022 United States 40% Philippines 4% India 14% Nigeria Italy 17% 85% Top Departure Countries % of change 2023 vs. 2022 United States 15% Canada 19 Philippines 56% India 170% Same as during the previous year, most passengers chose to fly Economy class, and one in every ten travelers flew Business class in 2023. In addition to that, round-trip was the most frequently selected trip type with an average of 2,5 times more tickets sold compared to one-way trips. It also indicated an 11% increase in sales, while the share of one-way tickets went up by 25%. Thus, it shows that today's air passengers are more comfortable making last-minute plans and prefer having more freedom and flexibility with their VFR or leisure travel decisions. Meanwhile, United Airlines, Turkish Airlines, American Airlines, Philippines Airlines and Qatar Airways were the most commonly used air travel companies Trevolution Group's customers gave preference to throughout 2023. However, Air China showed the most significant increase in global ticket sales, which again points to the country's tourism sector recovery. Airfare Ticket Type Airfare Ticket Type Ticket Change 2023 vs. 2022 Economy Class Business Class 14% 31% Trip Type Ticket Change 2023 vs. 2022 One Way Round Trip 25% 11% According to the latest sales data, the average advance purchase period last year was returning to the pre-pandemic levels when people would plan their travel longer ahead. Thus, in 2023, 17% of airline passengers booked their flights up to 10 days in advance, while 10% chose to do it 11-20 days ahead and 9% bought their airfare tickets up to a month in advance. While only one fourth of all travelers purchased airline tickets over three months in advance back in 2022, last year almost 30% of them chose to secure their flights 90 and more days ahead. A longer booking window indicates the returning travel confidence with people looking to secure their flights for a better price regardless of how far ahead in it might be. Meanwhile, the length of stay abroad has only increased by 4% in 2023 vs. 2022, with 29 days being the average period of time customers spend traveling. Advance Purchase Days % of Total Tickets in 2023 0-10 11-20 21-30 91+ 17.4% 10.4% 9% 29.8% In 2023, business class ticket prices went up by 10%, while economy class fares stayed relatively steady at around a thousand USD with no major changes. When it comes to purchasing auxiliary products and extra in-flight services such as Travel Care, Baggage Protection, Seat Assignment, Rental cars, Price Drop Guarantee, Fare Lock or Vacation Planner, this segment has increased by 22% in 2023 compared to 2022. This indicates the growing demand for comfort, affordable flight upgrades and additional travel products being available all at once when placing a booking. Top Auxiliary Products Ticket Change 2023 vs. 2022 Ticket Protection Price Drop Guarantee 17% 54% “2023 for us was a year marked by growth and accomplishments - while still continuously increasing our business volumes, we have launched a new travel vertical, Dreamport, and have introduced NDC aggregated air travel services. Looking ahead, the promise of the upcoming year is equally compelling. One of the upcoming initiatives includes a travel app, which will consolidate all our travel products and services into one comprehensive ecosystem. We are also dedicated to extending the selection of travel products and will soon introduce a new innovative corporate travel vertical, Triplicity, to our portfolio,” Alex Weinstein, Founder of Dyninno Group of Companies, commented. Trevolution Group, which operates International Travel Network, ASAP Tickets, Skylux Travel, Dreamport, Oojo, and other travel brands, has established itself as the global market leader in the travel business, specializing in the visiting friends and relatives' (VFR) segment. Over 840,000 unique airline tickets and vacation packages were sold by the companies under the Trevolution Group brand in 2023, making it the fourth-largest travel consolidator in the US.
Airlines’ Silver Lining Amidst Turbulence: Lower Airfares, Yet Service Woes Persist
In a surprising turn of events, Australians are finally seeing a dip in airfares, thanks to lower jet fuel prices. The Australian Competition and Consumer Commission (ACCC) reports a 13.4% year-on-year drop in average revenue per passenger in December, which has sunk below pre-COVID levels. However, it’s not all smooth sailing. Even the market’s cheapest flights are slightly pricier than those before December 2019. ACCC head Gina Cass-Gottlieb attributes this to the lower demand for domestic air travel and reduced jet fuel prices, offering travellers relief from the sky-high airfares of the past two years. However, the industry is still grappling with service issues. Over the festive season, flight delays and cancellations were higher than usual, leading to widespread disappointment among consumers. Cass-Gottlieb acknowledges these high cancellation and delay rates as a significant concern. In response to public criticism of national carrier Qantas, Treasurer Jim Chalmers has revived the ACCC’s airline sector monitoring, which had been paused during the pandemic. The ACCC plans to continue its quarterly report schedule, focusing on airline competition on key routes and passenger numbers. Despite these challenges, the industry is moving beyond its recovery phase, with airlines operating at 95% of their pre-pandemic capacity in December. Over 4.8 million passengers took domestic flights at the end of the year, indicating a return to more typical seasonal trends. However, airlines’ excuses, ranging from weather delays to air traffic controller shortages, fail to address the root cause of poor service standards. The ACCC identifies issues like pilot training and supply chain disruptions as factors within the airlines’ control contributing to these service problems. On a brighter note, the entry of low-cost carrier Bonza into the Australian market has stirred up competition. The ACCC reports that half of the domestic passengers in December travelled on routes served by three or four competitive airlines, a promising sign for further price reductions. Yet, with Qantas and Jetstar still flying over 60% of domestic passengers, the market concentration remains high. Meanwhile, newcomer Bonza has made a promising start, flying around 750,000 passengers on 35 routes in its first year, focusing on serving regional destinations. The post Airlines’ Silver Lining Amidst Turbulence: Lower Airfares, Yet Service Woes Persist first appeared on Stray Nomad Travel News.
Why Australian Airfares Are High, While European Airfares Are Low?
Let’s face it: due to its location, size, and population, air travel inside and outside of Australia will always be costly. Historically, airfare in Australia has been pricey. This is just one of the numerous factors at play here, including the requirement of increased competition and the presence of a clientele prepared to pay higher prices. Multiple search engines have revealed that international airfares from Australian cities have increased by almost 50% over pre-pandemic levels. In comparison, domestic airfares have increased by 16% during the same period. Finder.com.au, a price comparison website, analysed Skyscanner and discovered that the average roundtrip ticket between Melbourne and London pre-pandemic cost $1,412, but by 2023, the average price had risen to $2,677. While the continuous increase in jet fuel prices has slowed, restricted airline capacity, strong demand, and debt repayment contribute to the sky-high prices. Airlines were unprepared financially because of their high volume but low-yield business strategy before the COVID-19 pandemic. The trend has now flipped, and airlines are running large volumes with reduced capacity, allowing them to enhance their yield, resulting in huge profits. Airline companies incurred huge losses between 2020 and 2022, forcing many of them to rely on government assistance to stay afloat; these companies have now had to rehire employees at higher salaries than before and repay the loans that kept them afloat. The current sky-high ticket prices reflect all of these issues. How do we compare to Europe? According to new data from the International Air Transport Association (IATA), European domestic travel is rising. Airfares inside Europe have increased below the continent’s average inflation, giving a silver lining despite economic woes. Although IATA reports that European airfare increased by 16% in June 2019 compared to pre-Covid levels, this is still lower than the average inflation rate in Europe, which was 20% in the same period. Airfares in 2023 started more than 20% higher than in 2019, but decreased significantly until June. Recent traffic data, however, indicates that passenger numbers dropped by just 3.6% from 2019 to 2020, demonstrating that Europeans are resilient in their desire to travel despite price constraints. The director general of IATA, Willie Walsh, recently highlighted Europe’s strong air travel rebound and predicted that it will exceed the 2019 target by 2024. The competition in the airline industry, he said, is what has kept ticket inflation at 16% instead of the 20% shown in the CPI. Walsh praised this success despite the high cost of aircraft fuel and rising wages. He did, however, voice his disappointment with the recent increases in airport fees at key European hubs such as London Heathrow and Amsterdam’s Schiphol. Walsh said 20 new airlines have launched operations in Europe during the past year, contributing to a more competitive industry. He argued that fostering more airline rivalry will boost Europe’s economic competitiveness. When will airline prices drop? While increasing traffic indicates that the industry is on the path to financial recovery, international fares are unlikely to see significant reductions this year until either new routes are announced or special promotions are introduced. With domestic capacity restored to pre-COVID levels and new market entrants like Rex and Bonza contributing to airfares reductions, domestic prices have settled to a fairer level. There is still a strong demand for airline seats in Australia and across the world, so airlines don’t need to do much to adjust capacity, even on their most popular routes. Airfares are still primarily determined by the market and the demand size. Still, airlines have learned that relying only on enticing marketing campaigns to bring in customers is not sustainable. International airfares in Australia, currently feeding off strong demand – notably from the leisure and visiting friends and relatives markets who are prepared to pay a premium to go – are only likely to come down until the market begins reactivating adversely to the levels. The rising inflation will eventually cause consumers to tighten their belts, forcing airlines to implement corrective pricing measures in order to keep their load factors reasonably high, even though many consumers are still willing to pay higher airfares. Adjustments are happening all over the world. For example, in Canada and the UK, capacity is already back to pre-pandemic levels (or near to it), and international airfares have plummeted. Qatar Airways has been lobbying the Federal Government to quadruple its services into Australia, and other airlines are similarly interested in finding ways around the current constraints to increase the number of flights into and out of Australia. Remember that airlines have a right to a reasonable profit margin; nonetheless, customers want discounts, and airlines must strike a balance between satisfying those customers’ needs and ensuring their long-term viability. We’ll unlikely to see the dirt-cheap airfares of before 2020 again, but savvy travellers may still find bargains. Destinations focused on international tourism usually give better value for money. Some of the best opportunities to find a cheap international fare occur when a new route is announced, provided that the launching carrier has competition on this route and that their competitors react accordingly to their announcement.
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