“Robust” demand and weak supply are pushing up domestic and regional airfares in Europe, with rail and car rental prices also rising, according to Advito’s latest Travel Price Index.
Advito’s Travel Price Index for Q3 2024, calculated through predictive analysis based on future shopping data, shows mixed performance of airfares in different parts of the world.
In Europe, short-haul business-class fares rose 2% year-over-year in the third quarter, while economy-class ticket prices saw a bigger 7% increase, according to Advito.
In comparison, business class fares on long-haul intercontinental routes originating in Europe are up just 1% year-over-year, while economy class fares are up just 4%. Long-haul business class fares are also on a downward trend compared to the second quarter of 2024.
Advito noted that transatlantic fare increases between Europe and North America are now “easing up” as the airline network on these routes has fully recovered, while business fares from Europe to Asia have also fallen by 8 percent due to lower demand for flights between Germany and China.
Hotel prices across Europe are trending lower compared to the second quarter of this year, but are still 8% higher than the third quarter of 2023, with occupancy rates also above last year’s levels. Globally, hotel prices in the third quarter are expected to increase 6% year-on-year.
Advito added that most markets around Paris and Berlin are seeing “significant increases” in average room rate (ADR) prices due to the hosting of the Olympic Games and UEFA Euro 2024 football tournament respectively this summer.
According to the index, European rail fares are up 6% on average year-on-year, with demand being driven by declining domestic air capacity in Germany, France and the UK and a renewed focus on more sustainable transport modes such as trains.
European car rental prices are rising even sharper, up an average of 11% year-on-year, which Advito attributes to increased air capacity, heavy bookings from tour operators and major sporting events in Europe this summer.
