253% annual increase in airline ticket sales from US travel agencies
The Airlines Reporting Corp (ARC) reported this week that its accredited travel agency’s air ticket sales totaled $5.4 billion last month. This figure represents a whopping 253% year-over-year increase from February 2021. This is also a 48% month-over-month growth.
ARC is an industry leader in airline distribution and intelligence, providing tools and channel insights to help the travel network connect and grow worldwide. It is a trusted airline settlement solutions provider, which handled more than $97 billion in transactions between airlines and agencies in 2019 alone. It recently shared some insights into the US market.
The company notes that ticket prices have fluctuated over the past year due to the ever-changing circumstances of the global health crisis. He noticed a significant decline in domestic tariffs in the US economy last summer, dropping almost 30% between July and September, but there was some balance heading into 2022.
The previous peak in pandemic sales was $4.4 billion in November 2021. Notably, the omicron variant quickly wreaked havoc on the industry, impacting the recovery. Nevertheless, the market shows that it is back on track when looking at the ARC report. The data also shows that the total number of passenger trips increased by 21% between January 2022 and February 2022. Breaking it down further, US domestic travel increased by 17% and international travel by 28%.
Steve Solomon, vice president of global sales, marketing, operations and customer experience at ARC, shared the following about the activity in a statement:
“Leisure demand approaching pre-pandemic levels and accelerating business travel bookings fueled another month of strong sales. With the US domestic travel market growing steadily, we are watching the war in Europe and its impact on the strong growth in international travel to start the year.
Looking at statistics from 234 airlines and 10,728 retail agencies, average daily sales totaled $14,277. Additionally, the average round-trip ticket price was $464, a 34% year-over-year increase.
Carriers benefit from better conditions compared to the start of 2021. Photo: Vincenzo Pace | single flight
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Conditions are improving across the board for the US airline industry. All major airlines have announced the return of alcohol sales in their main cabins, coinciding with the end of the current federal mask mandate.
While the US domestic market recovered considerably earlier than other segments around the world, the long-haul sector did not achieve the same recovery rates. International services have long been expected to take longer to return due to ongoing travel requirements, which are now beginning to transform.
Navigate the situation
With summer fast approaching and restrictions easing, passengers are increasingly taking advantage of the improving market climate. Airlines and customers are hoping for consistency across the industry and will closely monitor factors such as new virus waves and global political crises in the months ahead.
There is a better balance between local and international operations. Photo: Vincenzo Pace | single flight
There will undoubtedly be twists and turns. Several American airlines have reduced their schedules due to fuel costs. Yet others also increased their frequencies ahead of the seasonal rush.
What do you think of the good figures for air ticket sales from travel agencies? What do you think of the current industry climate in the United States? Let us know what you think of the market and its outlook in the comment section.
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