Looking ahead, there might be some bright spots for growth in premium international travel. Premium international air travel was up 7.8% within Europe in March, compared to 0.4% in February. There are signs of a pickup in business confidence in the Eurozone which could support growth ahead.
Key points:
- Passenger travel on international markets rose 4.6% in March compared to a year ago, in line with the 4.6% result in February. But the growth trend over the past several months, particularly for premium travel, has flattened;
- The year-on-year comparisons continue to show some positive impact from the Lunar New Year. The holiday provided a boost for leisure travel for several weeks, this year extending into March;
- For premium international travel (up 4.4%), there was an acceleration on February (up 2.3%), but the growth trend remains broadly flat when considering the past 6 months. Premium international air travel volumes are largely unchanged since August 2014;
- This development reflects a lagged response to the gradual slowdown in improvements in business confidence throughout H2 2014, with economic conditions in some emerging markets deteriorating;
- Looking ahead, there might be some bright spots for growth in premium international travel. Premium international air travel was up 7.8% within Europe in March, compared to 0.4% in February. There are signs of a pickup in business confidence in the Eurozone which could support growth ahead;
- But it is important to note that weakness appears to be creeping in again in other regions, with business activity in emerging markets contracting in April for the first time during the past 12 months. This could mean a continuation of the flat trend in volumes we have been seeing since late 2014.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
