Airlines, cruise and travel businesses: key trends

In our November TTC Insights Travelcast, Martin, Simon, and Sarah examined the latest developments from major travel players like Ryanair, Royal Caribbean, and IAG and shared their insights into trading conditions for smaller companies. 

Here we summarise the key takeaways: how short-haul and long-haul airlines have performed, the trends reshaping the cruise market, and what forward bookings reveal about the travel landscape heading into 2025.

Short-haul vs. long-haul flights

Ryanair and International Airlines Group’s (IAG) recent results tell very different stories. Shart-haul focussed Ryanair’s half-year profits fell by 18%. Despite a 9% increase in passenger numbers, average fares dropped 15% in the first quarter and 7% in the second. 

In contrast, IAG reported a large increase in long-haul focussed British Airways’ Q3 operating profit, with a 5% margin growth and average fares marginally ahead of the same quarter last year. Capacity expansion – focused on trans-Atlantic routes and premium economy cabins – helped passenger numbers rise by 6%.

Trends shaping the cruise market 

Cruise continues outperforming other sectors, offering excellent value for money despite itinerary issues earlier this year. Royal Caribbean posted another very strong set of results which continue to beat their expectations with higher load factors, increased pricing and greater onboard spend. 

A growing trend, noted at Travelzoo’s November breakfast event, is the rise of niche cruising, including expedition and smaller river cruises – summed up as “moving and cruising.”

Smaller travel businesses: a mixed bag of results 

While the big players have set a very positive tone for the industry, the story is a little more nuanced for smaller travel businesses. 

For many, 2024 has been a volatile year. There’ve been periods of rapid growth, with many reporting record-breaking days or weeks. But these have often been followed by unexpected slumps and shortfalls. 

It’s difficult to say what’s behind the unpredictability: skittish consumers against a complicated economic environment, a topsy-turvy political backdrop, or even a permanent shift in booking patterns.

Despite the volatility, a prevailing sense of optimism remains. On our latest TTC Insights Travelcast, 50 travel businesses shared their outlook for forward bookings compared to the same time last year. The results are encouraging:

• 70% of respondents reported higher booking volumes, a significant improvement from pre-summer figures.
• 50% noted an increase in pricing compared to last year.

If you’d like to explore how these insights can help steer your business in the right direction, don’t hesitate to reach out – or dive deeper by watching the full Travelcast recording.