2015 Mid-Year Air Travel Trends: Expedia and Airlines Reporting Corporation Release Global Report Detailing Air Travel Trends and Pricing for Coming Months
The Expedia group, in partnership with Airlines Reporting Corporation (ARC) and other organizations, today released a comprehensive study that analyzes a rich set of global air travel data spotlighting air travel trends. The report, Travel Check-Up: Air Travel Trends 2015, represents original analysis of a variety of travel data. Specifically, the report analyzes:
Average ticket price fluctuations on key routes globally
Travel demand and package growth savings opportunities globally
The impact of foreign exchange on air travel and how long travelers are staying on vacation
Ticket prices for Asia-Pacific experienced an average of a 7 percent air ticket price decline In December 2014, Expedia and ARC analyzed likely 2015 average ticket prices (ATPs) to many top travel destinations originating from North America, Europe, and Asia-Pacific. On the whole, our predictions were spot-on. With prices adjusted for exchange rates, air ticket prices declined approximately 7 percent for travelers originating in Asia-Pacific as compared to 2 percent on average across North American and Europe.
In Asia-Pacific, the survey found that Malaysian travelers heading to Australia and Thailand enjoyed the largest ticket price decline at 22% and 10% respectively.
For specific prices for the remainder of 2015, Expedia and ARC dug through the data1 to find some of the largest expected air ticket price declines across a selection of our favorite destinations. Here’s our view on the top 10 destinations to which travelers can find the best deals.
“An analysis of air industry data suggests that, with smart planning, the second half of this year will be an optimal time to explore the world,” said Greg Schulze, senior vice president Expedia Global Tour & Transport. “We work tirelessly to take data and put it at the fingertips of travelers in the form of actionable information that makes them confident to click, book, and go. Our ultimate goal is to help travelers feel informed and empowered to get past travel decisionmaking and move into travel moment-making.”
Favorite cities worldwide continue to offer major package savings Vacation packages are a great way for travelers to get major savings. By bundling, travel suppliers have more flexibility on the rate offered, so they are willing to provide consumers great deals.
After running data on package deals booked for travel between June and September 2015 that included air and hotel,we determined travelers can save up to US$648 across all destinations.
For certain destinations, package savings for 2015 can be even greater. In our December 2014 report, we listed a number of traveler’s favorite cities worldwide offering major package savings. When we compared the numbers again at the halfway point of 2015, we were delighted to see that these cities continue to offer great deals.
*Savings on this table are in USD
For this report, we expanded beyond the list published in December 2014 to find some great deals for Singapore travelers heading to other Asia Pacific cities.
**Savings on this table are in USD
Asia-Pacific travelers are reducing their stays in Europe and headed to the US
One of the key metrics travel industry insiders typically use to evaluate traveler behavior is Length of Stay (LOS). This statistic shows us how long travelers stay in a particular place. Through this report, we evaluated ARC’s global numbers for June, July, and August 2012-2015 to see what insights we could glean from the duration of air trips over those time periods.
As we looked at LOS for travelers originating in Asia-Pacific, one trend was clear: Asia-Pacific travelers are reducing their stays significantly in Europe this summer. One possible reason for this trend is the Chinese yuan gaining strength against the U.S. dollar, thus travelers originating in Asia-Pacific, might be seeking to take advantage of this favorable exchange rate and shift travel plans to North America.
Supporting our theory: The fact that LOS on journeys from Asia-Pacific to North America shows gradual increases overall, peaking at 12 and 14 percent increases when comparing August 2014 versus August 2015 for premium and economy cabin travel, respectively.
Our mid-year analysis also indicates that trips with the longest LOS change from month to month. In June and July, the longest trips originate in North America and head to Asia-Pacific; in August, the trips with the longest lengths of stay start in Asia-Pacific and head to Europe. These trends remained relatively consistent from 2012-2015 for travelers originating in Asia-Pacific and heading to Europe, though the August numbers for 2015 suggest a destination shift to North America.
Our mid-year analysis of ARC data indicates a similar growth trend for travelers from Europe heading to Asia-Pacific. More travelers originating in Europe are heading to Asia Pacific, which went up to 11 percent during January-April 2015, as compared to 4 percent during the same time period in 2014, outpacing growth of other long-haul regions such as North America.
Average LOS for June, July and August in Asia-Pacific, Europe and North America for intra-region travel ranges from flat to down between 2014 and 2015. One could interpret this data to indicate that travelers are taking shorter trips within their home markets during 2015. We prefer to think these statistics prove the world is becoming a more global place with travelers choosing to spend longer portions of their precious vacation time farther away from home.
This study reflects a partnership between ARC and the Expedia group and includes data for travel in more than 200 countries and territories. The report also utilizes data from other industry sources such as the International Air Transport Association (IATA), Diio Mi and the Airline Tariff Publishing Company (ATPCO).