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International flights get cheaper while domestic prices soar

By   /  August 3, 2017  /  Comments Off on International flights get cheaper while domestic prices soar

The average ticket price between Sydney and key international routes has decreased year-on-year, while airfares from Sydney to almost all major Australian cities have increased, according to the latest Business Travel Pulse report.

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Sydney international airfares decrease year-on-year, domestic airfares on the rise

The report by CWT Solutions Group, the consulting division of Carlson Wagonlit Travel, and CAPA – Centre for Aviation identified airfares on the Sydney-Singapore and Sydney-Hong Kong routes have fallen more than 5 per cent year-on-year.

The latest Business Travel Pulse report reveals international airfares from Sydney have decreased.

Meanwhile, the average ticket price on domestic routes from Sydney has increased, with tickets to Melbourne and Perth rising more than 5 per cent year-on-year.

CAPA executive chairman Peter Harbison said Sydneysiders can expect domestic flights to increase further.

“Sydney is very much at the heart of Australia’s aviation system both internationally and domestically,” said Harbison.

“With very strong international growth, particularly from China, it is a key stepping off point for international tourism. Domestically, as the fare war between Qantas and Virgin subsides and capacity constraints, particularly in Sydney, we will begin to witness a gradual move upwards in fares.”

CWT Solutions Group, Asia Pacific, director Richard Johnson said many factors have contributed to the cheaper international flights.

Sofitel Sydney Darling Harbour is set to open this year to cater to the growing demand for Sydney accommodation.

“We have seen a capacity evolution from Asian and Middle Eastern carriers, as well as more routes becoming available between Asia and a wider range of Australian cities for low cost carriers,” said Johnson. “These factors create more choice for travellers and could be contributing to the decrease in international airfares.”

Looking to hotels, Sydney has the highest occupancy rate in Australia at 89 per cent. The report reveals that occupancy is expected to remain flat in 2017, but average room rates have increased 5.6 per cent due to supply issues. While new hotels are set to open this year, the report suggests they are not expected to fully absorb the growing demand.

“We’ve seen evidence of booking times to access lead-in room rates extending as demand has increased,” said Johnson. “Leisure travellers are often booking months in advance and the historical ‘best practice’ of at least 21 days out for business bookings has consequently also increased to around 30 days.

“The consistently high occupancy rates that Sydney enjoys could attract foreign investment into the hospitality market and increase the hotel pipeline, facilitating more growth down the road.”

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