Australians need to brace for a reality check. When it comes to international travel, we’ve had it too good for too long.
After years of cheap flights to all corners of the globe, market reality has hit and we’re in for a bone-shaking landing.
That will mean a fundamental shift for the visitor economy. And the good news is, Australia stands to cash in.
Since the pandemic, airfares have re-adjusted and tightened. On average, airfare costs comprise approximately 30 to 35 per cent for jet fuel, 30 to 35 per cent for labour and the remainder for aircraft leasing, purchases, administration, and other overheads.
Geopolitical events, such as the conflict in Ukraine and tensions in the Middle East, have led to a spike in jet fuel prices. Simultaneously, an inflationary economy, fuelled by post-pandemic spending, is driving up costs.
Global pilot shortages have resulted in substantial pay increases, further inflating expenses. Additionally, logistical disruptions from the…
tourism/” target=”_blank”>Read further.