While the recent recession certainly hurt the travel industry, several of the world’s largest and most luxurious airlines appear to be on the road to recovery. New figures from a variety of travel industry bodies have demonstrated an increase in the number of people booking international flights, with a noticeable increase in the proportion of tickets booked on high-end airlines and ‘luxury’ carriers.
From 2007 onward, a number of smaller low-cost carriers have reported increased patronage and higher revenues, largely due to limited consumer travel spending. Travel industry experts theorized that the increase was relative rather than absolute, with a greater number of budget travellers opting to fly overseas during the recession, aiming to take advantage of low-cost hotel rooms and tours.
The increase in high-end flight bookings, on the other hand, represents a more ‘complete’ recovery for the travel industry. The ‘bread and butter’ of consumer travel – holidaying families and package tour travellers – appear to be returning to the air en masse, inspired by reasonable fares and visible promotional efforts from major airlines and international carriers.
Singapore Airlines is one of several high-end airlines to see increased demand, largely due to the gradual recovery of economies in the region. Singapore’s economy was damaged more severely than many others throughout the financial crisis, as the city-state depends on its financial services sector and heavily export-driven trading industry for income, employment, and prosperity.
For high-end airlines, the surge in bookings is likely to be accompanied with a smaller surge in the price of international flights, as airlines have a history of complementing demand with raised fares. Travellers aiming to maximise the value of their ticket are best off booking flights independently as soon as possible, before price hikes and the elimination of low-cost package tours occur.