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Perth domestic airfares on the rise: troubling times ahead but industry remains optimistic: CWT/CAPA Report

July 11, 2017 Business News No Comments Email Email

CWT Solutions Group, the consulting division of Carlson Wagonlit Travel, and CAPA – Centre for Aviation identified that the Average Ticket Price (ATP) to Perth from almost all major Australian cities has increased by up to 5% year-on-year.

 At the same time, passenger numbers for Perth are slightly decreasing year-on-year (-0.9% 2016 versus 2015), while available seats have decreased at a faster rate (-2.8% on the same period). As a result, there is future potential for constrained capacity if available seats continue to decrease at a greater pace than passenger numbers. 

CAPA and CWT Solutions Group’s newest Business Travel Pulse report, which for this edition focuses on the Australian city of Perth, brings together key aviation and hotel data from both organizations to deliver informed opinion and in-depth analysis. 

“Perth is at a very interesting and probably pivotal stage in its aviation and tourism development,” said CAPA Executive Chairman, Peter Harbison. “Internationally it is proportionately the best connected city in Australia. As the shape of mining-related travel changes and stabilizes, the need to generate a renewed impetus for leisure and corporate travel becomes essential. With a whole new halo around the forthcoming Qantas non-stop service and the redevelopment of Perth Airport, there is tremendous scope for promoting new opportunities.” 

The report also reveals that hotel occupancy rates in Perth for the year ending May 2017 have increased by 2%, reaching 80.6%, despite a last room available rate decrease of 5%. 

“Perth has a strong pipeline of new properties opening over the next year and a half, despite the market looking relatively unstable and delicate with softening demand,” said Richard Johnson, Director, Asia Pacific, CWT Solutions Group. “Given the abundant room inventory available, companies should consider adding more hotels to the RFP process for their corporate hotel programs and lock in the most competitive rates.” 

The industry remains optimistic that Perth will improve into 2018. The introduction of new services, in particular Qantas Airways’ launch of the direct Perth-London (Heathrow) route, utilizing Boeing 787-9 aircraft in Mar-2018, will be the catalyst for this improvement. 

“Qantas’ direct Perth-London flight has the potential to be a game-changer,” said Johnson. “It wouldn’t be surprising to see a good number of passengers currently transiting through Asia or the Middle East switching over to this route. Being able to make a domestic stopover could see layover times in Perth for both inbound and outbound travelers increase. This could stimulate the local economy and could be a shot in the arm for Perth’s accommodation sector, too.” 

Recently, Tigerair Australia commenced four-times-weekly Perth-Brisbane services, Batik Air commenced twice-daily Perth-Denpasar services, while China Eastern is reviewing the possibility of launching daily Perth-Shanghai services. With the added potential for direct services from Japan to link the many Japanese company interests in Perth, the outlook is generally bright.

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