Fuel costs drive up airline ticket prices

4 July 2012

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4 July 2012 | Kamalpreet Badasha

Average airline ticket prices from European and North American destinations have increased by 6 per cent compared with the previous year due to rising fuel prices.

The 2012 Global Supply Benchmarking Research and Analysis conducted by Egencia also found tickets from locations in the Asia Pacific region also increased by 3 per cent on average.

The greatest increase in average ticket prices bought in Europe for an individual destination was to Amsterdam, which went up by 15.2 per cent to £190 per ticket. But the average ticket price to Stockholm fell by 12.4 per cent to £226 per ticket, in part due to the availability of low-cost carriers.

Tickets to Marseille, Milan, Moscow, Munich and Paris were all lower than the previous year, which the study attributed to the Eurozone crisis, increased competition from low-cost airlines and high-speed rail driving prices down.

Flights departing from North America saw a 6 per cent ATP increase to $392 (£250) per ticket, attributed to factors including airline consolidation and fuel-price increases.

Average ticket prices bought in Asia Pacific for flights within the region rose significantly, with trips to Bangkok up 17 per cent and to Beijing 12.5 per cent. But average prices for flights to San Franciso and Los Angeles were down by 10 per cent.

The study suggested tips for travel buyers to save money on airline tickets, including consolidating bookings, booking early, streamlining approval processes for travel requests and flexibility in travel plans. It added companies are spending on business travel once more although there is a growing focus on cost control and efficiency.

The upward trend in airline ticket prices was also reflected in a worldwide increase for average daily rates for hotels, which went up by 3.3 per cent in Europe, 6 per cent in North America and 5.7 per cent in Asia Pacific.

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