Unexpected Surge in December 2024 Business Travel Boosts Hotel and Airline Revenues
In December 2024, an unexpected surge in business travel demand led to substantial revenue gains for both airlines and hotel companies. This increase in corporate travel activity significantly exceeded revenue projections.
According to the Airlines Reporting Corporation (ARC), the number of trips sold by U.S. corporate agencies in December increased by more than 11%. This growth rate was higher than any other month in 2024, with the exception of one.
Hotel companies also saw a significant boost in their revenues. In fact, they exceeded their fourth-quarter revenue per available room projections. This was largely due to the return of business travelers to the market in unprecedented numbers for December, a month that is traditionally not strong for corporate travel.
The International Air Transport Association (IATA) described the demand in December as “a strong finish” to the year. This surge led to a 10.4% year-over-year increase in global air traffic, marking a significant acceleration from November levels.
Source: Business Travel News