Domestic and regional airfares are increasing in Europe due to “solid” demand and lower capacity, with rail and car rental prices also on the rise, according to Advito’s latest Travel Price Index.
Advito’s Travel Price Index for the third quarter of 2024, which is calculated by predictive analytics based on future shopping data, indicated a mixed performance for airfares across the various global regions.
In Europe, Advito said that business class fares for short-haul flights are up by 2 per cent year-on-year for Q3, while economy ticket prices are seeing a larger 7 per cent increase.
By comparison, business class fares on long-haul intercontinental routes from Europe are only up by 1 per cent year-on-year and by 4 per cent for economy tickets. Business class long-haul fares are also trending downwards compared with the second quarter of 2024.
Advito noted that rises in transatlantic fares between Europe and North America were now “softening” due to the full recovery of airline networks on these routes. Meanwhile, business fares from Europe to Asia are also down by 8 per cent due to lower demand on flights between Germany and China.
Overall European hotel prices are now dropping compared with the second quarter of this year, although they are still 8 per cent higher than in Q3 of 2023, with occupancy levels also above last year’s levels. Globally, there is predicted to be a 6 per cent year-on-year increase in hotel prices in Q3 compared with same quarter last year.
Advito adds that most markets around Paris and Berlin have been seeing a “significant increase” in average daily rates (ADRs) due to these destinations hosting the Olympics and UEFA Euro 2024 football tournament respectively this summer.
European rail prices are up by 6 per cent on average year-on-year, according to the index, with rail demand being driven by a fall in domestic airline capacity in Germany, France and the UK, alongside a renewed focus on using more sustainable forms of transport such as trains.
Car rental prices in Europe are seeing an even sharper rise with an 11 per cent year-on-year average increase. Advito said this was due to increased flight capacity, high tour operator bookings and major sporting events in Europe this summer.