The 37-page Australian Aviation and Airfare
Analysis, produced by 4th Dimension, Flight Centre Travel Group's
(FCTG) business travel consulting division and CAPA - Centre for
Aviation, provides an in-depth review of the domestic aviation
industry and includes the results of a specialised airfare
Including an evaluation of both the current and
prospective market trends in Australia, the report focuses on
areas such as domestic airline capacity, scheduling and
4th Dimension General Manager Virginia
Fitzpatrick said she was excited to be involved with an initiative
that introduced a new approach to tracking and reporting of
domestic fares and airfare procurement.
“The information in this report should appeal to
a cross section of travel industry stakeholders,” Virginia said.
“From corporate procurement departments, travel management
companies, airlines and travellers. The report will also interest
those working in the retail travel industry as it clearly
highlights how retail or 'holiday' airfares have been performing
and when is the best time to purchase fares. The research will
help to drive more intelligent procurement for the Australian
corporate sector using profiled benchmarking and more in-depth air
route and airline capacity data. Put simply, the combination of
research and analytics highlights how travel buyers can secure the
best deal on their air tickets.”
Virginia said the airfare benchmarking
brought 'big data' to life for travel buyers by leveraging the
huge volume of ticketing data available through the Flight Centre
The report also includes critical insights into
forecast risks for the travel industry, aviation data trends as
well as details into the current and future projections for not
only the domestic travel industry but also the economy.
Executive Chairman of CAPA Peter Harbison said,
“We're delighted to be part of this project. It fills a major
market intelligence gap for the travel and aviation sectors in
Australia. Our region generally receives only cursory coverage in
many global market reports, so it’s exciting to be providing deep
insights into Australia’s sizeable aviation and travel market.”
“The Australian market is at a very interesting
stage, with two major groups now well entrenched. At a time when
the world’s aviation system is undergoing massive change,
understanding the underlying issues is vital to doing business in
this sector,” Mr Harbison added.
Part two of the Australian Aviation and Airfare
Analysis report will be available first quarter 2015. The full
report will include a 2014 year-end analysis, specialist airfare
benchmarking analysis as well as predictions for the travel market
- The market is likely to see continued
consolidation from both the major airline groups in Australia ,
with initial indicators suggesting the end of the capacity war.
- Fleet plans for both major airline groups in
Australia show minimal capacity growth during the next six months.
- Fares are expected to trend upwards during the
remainder of 2014 and moving into 2015.
- Fuel costs are currently trending downward,
however political instability in major oil producing regions
emphasises the risk of an oil shock.
- In emerging markets the strongest prospects
for economic growth are expected in Asia and Africa.
- According to CAPA research, projected capacity
changes for the period up to Dec 2015, will see Qantas drop 459
seats and Virgin Australia increase by 699 seats.
- According to 4th Dimension benchmarking,
domestic corporate airfares have dropped an average of 2.8% during
the past 18 months, while domestic retail fares have dipped on
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