International fares decline

THE average ticket price to Sydney on many key international routes has declined over the last 12 months, with fares from the NSW capital to Singapore and Hong Kong having declined 5% year-on-year.

It’s a different picture in the domestic market, where the average ticket price between Sydney and almost all major Australian cities having increased.

The figures were detailed in the latest Business Travel Pulse report produced by CAPA and CWT Solutions Group, and unveiled at this week’s CAPA Aviation Summit.

CAPA executive chairman Peter Harbison said Sydney is very much at the heart of Australia’s aviation system.

“With very strong international growth, particularly from China, it is a key stepping off point for international tourism.

“Domestically, as the fare war between Qantas and Virgin subsides... we will begin to witness a gradual move upwards in fares,” Harbison forecast.

The report also looked at hotel prices, with Sydney having the highest occupancy rate at 89%.

Occupancy is expected to remain flat this year, but average room rates have increased due to ongoing supply constraints.

CWT Solutions Group director Asia Pacific, Richard Johnson, said the decline in international fares was driven by a “capacity evolution” from Asian and Middle Eastern carriers, as well as a wider range of low-cost carriers operating into Australia.

The full report can be viewed at carlsonwagonlit.com.

MEANWHILE Flight Centre’s 4th Dimension consulting division has also highlighted the surge in Sydney hotel rates, with average nightly prices jumping 8.7% to $270 in the first quarter of 2017 - the highest quarterly increase in the Sydney accommodation market in over two decades.