EVEN though demand for air travel is on the rise worldwide, it is elevating at a slower pace than before due to headwinds from economic uncertainty, political factors and terror threats, according to the latest report by IATA.

Global passenger traffic in June rose by 5.2 per cent compared to the same period a year ago, and up slightly from the 4.8 per cent increase recorded in May.

However, the upward trend in seasonally-adjusted traffic has moderated since January. June capacity increased by 5.6 per cent and load factor slipped 0.3 percentage points to 80.7 per cent.

“The demand for travel continues to increase, but at a slower pace. The fragile and uncertain economic backdrop, political shocks and a wave of terrorist attacks are all contributing to a softer demand environment,” said Tony Tyler, director general and CEO at IATA.

June international passenger demand rose 5 per cent compared to June 2015. All regions recorded growth, led by airlines in Latin America. Capacity climbed 6.4 per cent, causing load factor to slide 1.1 percentage points to 79.4 per cent.

Asia-Pacific airlines’ June traffic increased 8.2 per cent compared to the same period last year. However, most of the growth relates to the strong upward trend in traffic seen in the final months of 2015 and into 2016, with June demand barely higher than in February.

According to IATA, this could be a natural pause, but could also be a sign that Asian passengers are being put off travel by terrorism in Europe.

European carriers saw demand rise 2.1 per cent, the smallest increase among regions, reflecting the negative impact of recent terrorism. While demand tends to recover reasonably quickly after such events, the repeated nature of the attacks may have a more lasting impact.

Meanwhile, Middle Eastern carriers posted a 7.5 per cent traffic increase in June, which was well down on the double-digit growth recorded earlier in the year. In part this could be owing to the timing of Ramadan, which tends to depress traffic growth.

North American airlines’ demand rose 4 per cent compared to June a year ago, which was well up on the 0.5 per cent year-over-year growth recorded in May.

“The latest figures show that aviation and aviation related tourism delivers US$2.7 trillion in economic impact and supports some 62.7 million jobs worldwide. It is a powerful force for good in our world,” commented Tyler.

“It is too soon to know whether recent terrorist attacks will have a long-term negative influence on demand, nor what will be the impact of Brexit and the events in Turkey. But it is vital that governments recognise and support aviation’s ability to contribute to global economic well-being and better understanding across cultural and political borders.”

Top executives from Hainan Airlines and LVCVA toasting to the launch of the new route

CHINA’s Hainan Airlines (HNA) will be operating a direct flight between Beijing and Las Vegas come December 2, the first nonstop service to connect Mainland China with the US city.

The announcement was made yesterday by the Las Vegas Convention and Visitors Authority (LVCVA), after HNA filed an application with the US Department of Transportation to launch the flight.

Once the approval is received, travel agents and OTAs, as well as direct sales channels will start selling the service, stated LVCVA.

The flight will be operated by Boeing 787 Dreamliners in a two-class (34 business and 177 economy) configuration, departing thrice-weekly on Mondays, Wednesdays and Fridays.

Flights depart Las Vegas McCarran International Airport at 12.30 and arrive at Beijing’s Capital Airport at 17.30 the subsequent day. Return flights leave Beijing at 14.20 and arrive at Las Vegas at 10.30 the same day. The nonstop flight time is approximately 13 hours westbound and 12 hours eastbound.

“We are extremely proud to welcome Hainan Airlines to Las Vegas with their convenient, premium-service for Chinese visitors,” said Rossi Ralenkotter, president and CEO of LVCVA.

“China is an area where we have seen steady growth in visitation and we will continue to focus on experiences and amenities that cater to our Chinese guests. With these first-ever flights from China to Las Vegas, we are anticipating more than US$33.5 million in annual economic impact.”

EVEN as the world endured heightened economic uncertainty and increased terrorism threats, business travel in the Asia-Pacific region proved the most resilient, having attained the biggest share of corporate travel spend ahead of North America and Western Europe.

According to the Hotel Price Radar Q2 2016 report released by end-to-end hotel solutions provider HRS, the cities of Tokyo, Sydney and Singapore still lead in terms of average room rates per night, standing at US$280, US$244 and US$254 respectively.

Meanwhile, Bengaluru saw the largest spike in room rates over the past year, with a rate development increase of 22.9 per cent.

The HRS research also points to positive movements in the MICE industry over the past quarter, with Kuala Lumpur exhibiting exceptionally strong interest in partnerships with both local and international players.

This is particularly evident with the Kuala Lumpur Convention Centre strengthening its ties with the International Association of Professional Congress Organisers (IAPCO), Kuala Lumpur Tourism Bureau (KLTB), InvestKL and the Malaysian Association of Convention and Exhibition Organisers and Suppliers (MACEOS).

Hotels and tour operators have also taken interest in packaging products and services complementary to MICE development efforts, according to HRS.

Jakarta too is experiencing a per-night room rate increase over Q1 numbers. Business travel to the city is likely to improve, predicts HRS, as the Indonesia Convention and Exhibition Bureau (Inaceb) established in late March begins to strengthen Indonesia’s MICE facilities.

“The top business travel destinations in the region have remained broadly consistent for the past few quarters now,” said Kimi Jiang, vice president Asia-Pacific at HRS.

“An intensely competitive MICE climate will dictate further growth in the business travel sector, with countries like Kuala Lumpur and Jakarta developing aggressive strategies to grow their MICE industry.”

TRAVEL metasearch engine Skyscanner has revealed in a study the amount air travellers are willing to pay to save an hour of time on longhaul flights.

The study showed that the global average of US$8 is the amount that people around the world are willing to pay in order to shave off each hour of air travel.

Whether the route is more popular for business or leisure, and the presence of alternative flights appear to play a key role in how much value passengers are willing to pay, the study also found.

Skyscanner added that passengers were willing to pay more – US$1 to US$2 on average – on journeys which form part of shorter trips of less than seven days.

On the Bahrain to Kuala Lumpur route for example, which is popular but has no direct route, passengers pay on average US$26 per hour to shorten their journey.

Meanwhile, passengers flying between Los Angeles and Buenos Aires, where more choice from carriers exists, people pay on average of US$2 per hour saved, showing the value per route can vary significantly.

“In this day and age, time is an increasingly valuable commodity,” said Faical Allou, head of business development for Skyscanner analytics.

“Looking into the value of reducing journey time involved in taking a flight, particularly a long-distance one, reveals interesting insights and shows that there are several factors involved in how much value passengers attribute to reducing travel time, such as whether the trip is for business or leisure, the length of the trip and the choice of carriers and itineraries on offer.”

UK-BASED travel safety and risk management company beTravelwise has issued a Zika prevention advisory ahead of the Rio 2016 Olympics which officially kicks off on August 5 in Rio de Janeiro, Brazil, the origin of the Zika virus outbreak.

“Slap on the mosquito repellent and practice safe sex or abstain completely if you want to stay safe this summer,” the company warned in a statement.

Said beTravelwise director Andy Prior: “Mosquito bite prevention and safe or no sex is the best defence against the Zika virus; that’s the advice we are giving to our clients who are travelling to the Olympic Games or other Zika-infected areas.”

The travel safety specialist has come up with six methods to prevent mosquito bites. This includes covering exposed skin with long sleeves, trousers and socks; using insect repellent formulas with at least 30 per cent DEET (diethyltoluamide); spraying the room with repellant before sleep; sleeping in a screened room; and using a mosquito net.

The Zika virus is known to cause microcephaly, a birth defect resulting in developmental problems in babies. It can also lead to the rare neurological disorder, Guillain-Barre syndrome, according to the World Health Organisation. Pregnant women and those planning pregnancy are advised against all non-essential travel to Zika-infected areas.