Grab your bags – airfare prices dipping to this city!

Grab your bags – airfare prices dipping to this city!

If you’re anything like us, you’ll be hanging for a bargain on travel – whether it’s your client or a cheeky getaway for yourself. So today, we’ve got good news for you.

According to some fresh data from CWT Solutions Group, the consulting division of Carlson Wagonlit Travel, and CAPA – Centre for Aviation, the Average Ticket Price (ATP) to Adelaide on many key routes has dropped fairly significantly.

The prices have dipped year-on-year due to increased competition from international carriers, with the most impressive airfares being the Adelaide-Singapore route, which fell more than five per cent year-on-year.

Growth in international passengers continues to be a good news story for Adelaide. And it’s a trend that looks set to continue with airlines such as China Southern increasing frequency on their Adelaide-Guangzhou route and Qatar Airways increasing capacity on their Adelaide-Doha route, both set to launch in December 2017.

These findings are published in CAPA and CWT Solutions Group’s latest Business Travel Pulse report.

“Adelaide has become extremely well positioned both to attract inbound travelers and the corollary: a high level of frequency and quality one-stop service to and from most major destinations, supporting business travel,” said CAPA Executive Chairman, Peter Harbison.

“The importance of synergies between these two important segments of tourism and business travel cannot be overstated.

“Adelaide Airport, Adelaide city interests and the South Australian government have cooperated well to make this a reality and with this strong base there is potential for a very solid future.”

Adelaide recently reported 11 per cent growth in international passenger traffic for the fiscal year ending June 2017 to 952,000. Qatar Airways and China Southern Airlines, which launched services to Adelaide in December 2016, drove the international growth at Adelaide over the last year.

Bali and Dubai traffic declined while traffic in Adelaide’s four other international markets – Auckland, Hong Kong, Kuala Lumpur and Singapore – have been relatively flat.

Not surprisingly, Emirates has lost market share to Qatar in the Adelaide-Europe market. Qatar captured a 34 per cent share of total Adelaide-Western Europe bookings in the year ending June 2017 while Emirates captured a 37 per cent share.

Qantas, which puts some of its Adelaide-Europe passengers on Emirates, captured a 14 per cent share of bookings and Singapore Airlines was the fourth largest player with a seven per cent share.

In the year prior to Qatar’s launch of services to Adelaide, Emirates captured a 51 per cent share of the Adelaide-Western Europe market, followed by Qantas with 18 per cent  and Singapore Airlines with 10 per cent.

Malaysia Airlines also has lost significant market share, from seven per cent to less than two per cent, but this is mainly driven by its suspension of routes to continental Europe.

Looking at hotels, Adelaide’s occupancy rate increased only slight year-on-year, while average room rates have remained stable at $195.

The report reveals that occupancy is expected to remain high until new properties open in late 2018-2019, including Atura Hotel at Adelaide Airport in late 2018, and Sofitel (Accor) proposed for Currie Street and Aloft Hotel (Marriott) in 2019.
 Meanwhile, Last Room Available (LRA) rates in Adelaide have risen sharply by 6.5 per cent  year-on-year since 2016.

“With growing demand in Adelaide, hotel rates are expected to rise in moderation as suppliers understandably capitalise on the opportunity,” said Richard Johnson, Director, Asia Pacific, CWT Solutions Group.

“However, the market will still remain competitive and towards the end of 2018, as more properties start to open, we expect the pressure on hotel capacities should start to ease.

“At the same time, improved facilities such as the upgraded Convention Centre will position Adelaide as a viable alternative for events to cities such as Sydney that are experiencing far greater pressures when it comes to accommodation availability,” added Johnson.

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