A New Era of Travel Post-Pandemic
The demand for air travel has skyrocketed globally as individuals eager to escape their home confines after two years of pandemic restrictions are ready to spend significantly more on tickets.
In April, the average price of air tickets from Singapore was 27% higher compared to 2019, according to a report by Bloomberg, which referenced findings from the Mastercard Economics Institute. This trend isn’t isolated to Singapore; for instance, flight prices in Australia have surged by 20% since before the pandemic.
Data from online travel platform Expedia indicates that the average cost of flights to Singapore’s top five destinations—Bangkok, Bali, Kuala Lumpur, Phuket, and Seoul—has also risen by 20% compared to 2019 figures.
Several factors contribute to this hike in airfare, including a marked increase in demand following the easing of travel restrictions. Additionally, global oil prices have been on the rise since last year and have spiked further due to the ongoing conflict in Ukraine, which has disrupted many flight routes, particularly those heading to Europe. Fuel costs can account for as much as 38% to 50% of an airline’s operational expenses.
Despite these challenges, the appetite for travel remains strong. Delta Air Lines Inc. CEO Ed Bastian described the current demand as “off the charts,” noting a surge across all categories of travel—leisure, premium, business, and international.
A new term has emerged for travelers keen to reclaim their lost vacations: “revenge travelers.” These individuals, who have been emotionally impacted by the prolonged lockdowns, are described by Hermione Joye, the sector lead for travel in Asia-Pacific at Alphabet Inc.’s Google, as spontaneous and determined to fulfill their travel dreams.
On a more optimistic note, industry experts suggest that airfare prices may stabilize in the coming months. Mr. Lee Lik Hsin, the commercial executive vice-president for Singapore Airlines, noted that airfares fluctuate based on supply and demand. “For the next couple of months, many sectors are quite booked up, leading to higher prices. However, after this period, prices are expected to decrease. We regularly conduct promotions to encourage early bookings, so there are attractive fares available depending on your travel plans.”
