MANILA, Philippines — Demand for business class seats in Asia-Pacific is beginning to show signs of life for the first time since the pandemic, driven by the resurgence of corporate travel in the region.
In a report, the Center for Aviation (CAPA) said Asia-Pacific is starting to catch up with other regions in terms of travel recovery, but is struggling to rebound to pre-pandemic levels due to weak demand from the Chinese market.
In particular, CAPA noted that premium travel in the region is expanding at a pace quicker than that of economy cabins, highlighting one of the bright spots of Asia-Pacific travel.
“For Asia-Pacific airlines, recovery in both classes of travel has lagged well behind wider global recovery. Part of this was the delay in the region’s reopening to international travel that has been exacerbated by the sluggishness in the Chinese market,” CAPA said.
“However, even with these issues, premium travel in the region is recovering at a faster rate than that of economy cabins. In concert with this, business travel has also not undergone the extensive structural downturn that some feared would result from the pandemic,” it added.
As such, CAPA said airlines in Asia Pacific can look forward to a sustained growth in premium travel, especially as some airports in the region land among the top routes.
“While corporate travel volumes are still well behind broader recovery, most notably in Asia and the Pacific, there is reason to be optimistic about the outlook overall for business travel,” CAPA said.
Globally, business travel arrivals have reached 75 percent of pre-pandemic levels as of 2023, and the segment is poised to extend its growth story to this year.
CAPA listed the airports in Bangkok, Hong Kong, Jakarta, Shanghai and Taipei as the most popular gateways for premium travel in
Asia-Pacific. Worldwide, business class travelers are also going to Cairo, Dubai, Jeddah, London, Los Angeles and New York.
Digging deeper into the trends, CAPA said the pandemic also brought about new modes of labor arrangements like remote work. These developments are seen to impact the demand for business travel moving forward.
The Philippines, however, may find it challenging to capture the resurgent demand for corporate travel because of dismal service, infrastructure challenges, among others.
The Ninoy Aquino International Airport was named by BusinessFinancing.co.uk the fourth worst gateway in Asia and the Middle East for business travel.