Intercontinental airfares are decreasing, according to the Travel Price Index for the third quarter of 2024 from Advito, the consulting arm of BCD Travel. The report said that last year demand largely outstripped supply, as travel rebounded faster than airlines could reactivate their fleets, and the imbalance helped spur record profits for many airlines.

In other findings:

• Airlines: Fares from Asia and southwest Pacific continue to drop sharply due to the rise of capacity and competition in the international market as airlines restore more routes. Domestic fares are still up in North America and Europe where air travel demand is strong. Current industry challenges, including supply chain constraints and aircraft groundings, are impacting domestic supply.
• Hotels: Inflation and operational costs are still driving rate increases in many markets. According to STR benchmark data, occupancy levels have increased year over year in most regions except North America. Rate increases seem to have decelerated through the second quarter of 2024, attributed to leisure and business travel leveling off. Revenue per available room (RevPAR) as reported by STR has been record-setting in Europe, Middle East and Africa markets.
• Car rental: There is a continuation of the upward daily rate trend in North America which can be explained by a strong customer demand combined with a constant optimization of fleet and yield management. New vehicles are being acquired at more favorable conditions compared with the years in which the market faced vehicle shortages. There is a continued reduction in the number of electric vehicles. Demand for e-mobility is not in line with expectations, and the lower demand compared with combustion-engine vehicles results in a substantial loss of revenue for car rental companies.
  
  

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