Global business class airfares dropped an average of $119 (down 4%) from January to May 2025 compared with the same period last year, while global economy class fares declined by $18 (down 3%) compared with the same time period in 2024, according to a new Insights Report from FCM Consulting, a division of FCM Travel.
Global air travel demand rose 8.1% year over year as of May 2025, while the global passenger load factor (PLF) remained steady at 80.2%, a modest increase of just 0.7% year over year. In North America, demand remained the same, due in large part to new trade policies and broader macroeconomic conditions. The PLF in North America was 81.4%, a slight decline of 1.4% compared with last year.
On the accommodations front, hotel rates in North America increased by $46 to reach an average of $281 from the first quarter of 2025 to the second quarter, which was driven by rising demand, particularly around conferences, trade shows and customer meetings. Despite lower occupancy levels, hotels are experiencing higher operational costs, causing them to keep rates elevated. Some of the cities seeing the largest quarter-over-quarter rate increases include Chicago (up 39%), New York (up 29%) and Vancouver (up 25%), while Los Angeles experienced one of the biggest declines (down 12%).
Ashley Gutermuth, head of FCM Consulting, Americas, said, “Even in uncertain times, business travel remains a vital driver of growth for many companies.” The difference now, she said, “is that spending is approached with more strategy.” For those who invest wisely, said Gutermuth, business travel continues to be not just a cost, but a catalyst for long-term success.
To navigate the current environment, said Gutermuth, “businesses must incorporate flexible, real-time analytics into their forecasting methods, enabling strategies that respond swiftly to emerging trends and unanticipated changes.”
