Average air ticket prices in India spiked 9 per cent in the first quarter of 2024, primarily on account of a general increase in travel demand and "much stronger" economic growth, according to Australian Securities Exchange-listed FCM Travel.
At the same time, FCM Travel said there was a 20 per cent jump in the premium class bookings in the January-March period compared to the same period last year, driven by sectors such as manufacturing IT as well as conglomerates.
"Domestic air capacity has increased more than 3 per cent but due to the demand in travel, we have seen average ticket prices increase by 9 per cent which is attributed to a much stronger economic growth and a general increase in demand for travel," said Sunny Sodhi, Managing Director of FCM Travel India.
Popular domestic routes for business travel include Delhi to Mumbai, Mumbai to Delhi, and Bengaluru to Mumbai, he added.
Noting that India is soon going to be the 7th largest business travel market in the world and the aviation boom in the country is supporting the growth in business travel, Sodhi said business travellers are now more willing to spend a little extra for a premium experience.
International air capacity has also increased 14 per cent due to India's growing aviation sector, Sodhi said, adding that average international airfares have softened 15 per cent, which is a general global trend of yields decreasing across airfares.