Airfares and hotel rates on the rise in Europe – Advito report

Intercontinental airfares from Europe are expected to rise by 2-3 per cent during the fourth quarter of this year, according to the latest Travel Price Index from Advito.

Advito, which is the consultancy arm of BCD Travel, said that intercontinental economy fares had now returned to “normality” following the restoration of airline capacity around the world.

The report said its data showed that long-haul business class fares from Europe were up by 2 per cent year-on-year in the fourth quarter, while economy fares have increased by 3 per cent over the same period. Fares have also “trended” upwards in Q4 compared with the third quarter of 2024.

For short-haul domestic and regional flights in Europe, business class fares were up by just 1 per cent year-on-year, although economy fares have increased by 10 per cent over the same timescale. Advito said the rise in economy prices was down to “strong capacity discipline mixed with robust demand”.

Hotel prices in Europe also continue to accelerate during Q4, with average daily rates (ADRs) in the continent up by 9 per cent compared with the same quarter of 2023. Europe is the region with the highest year-on-year increase in hotel rates – well above the global average rise of 6 per cent.

“Inflation and hotel internal costs are still driving cost increases in many markets,” noted Advito. “Rate increases seem to have accelerated as we’ve moved into the fourth quarter of 2024, even as leisure and business travel continue to slow.”

The report added that while hotel revPAR (revenue per available room) has “started to slow” in some regions, such as Asia and North America, it continues to be “record setting” in Europe.