Produced by Research & Intelligence September 2024 Travel Market Report The Research & Intelligence team Welcome to the latest edition of theTravel Market Report, brought to you byBCD Travel’s Research & Intelligence team.Mindful of the2025 Market Outlookwe plantopresentinthenextedition,we’llsaveareviewofthelatesttrendsinairfaresandhotelratesuntilthen. We start this quarter’sTravel Market Reportwith a roundup of some importantborder control changes travelers can expect to see when traveling to theEuropean Union and the U.K. Mike EggletonDirector, Research & Intelligence Inspired by a chart published recently by IATA (International Air TransportAssociation) we explore the appeal to airlines presented by premium travelersand look at how one airline has made a major product decision in response. Inflight air turbulence hit the headlines in May this year following an incidentresulting in a passenger fatality. We’ve taken a closer look at the issue, and, withhelp from our colleagues in the Global Crisis Team, we provide advice on whattravelers can do to reduce the risks associated with this natural phenomenon. Natalia TretyakevichSenior Manager,Research & Intelligence We finish the report with the highlights of some primary research we’veconducted over the last quarter. Travelers shared their experiences andbehaviors when taking a flight for business. And travel managers told us moreabout the role they perform, and the challenges they face. MelinaSibajaTravel Insights Analyst Bordercontrols changing inEurope Some important changes are happening, which will affect individuals traveling from third countries to Europe or the U.K. By mid-2025, travelers will be required to provide more information andsecure pre-trip authorization, where this may not have previously been required. It’ll mean extra administration and a modest cost for affected travelers. United Kingdom introducing new visa waiver scheme The U.K. government is rolling out the Electronic TravelAuthorisation(ETA) scheme. Replacing the Electronic Visa Waiver Scheme for short-stay visitors, ETA will include travelers from morecountries, including many in Europe and the U.S. Costing £10, the ETA enables multiple visits to the U.K. over a 24-month period, and it includes passengers transiting through the U.K. An ETAwill not be required by British, Irish or British overseas territories passport holders. Nor will it be required by foreign nationals holding a visa or with permission to live, work or study in the U.K. So far, ETAs are only available for travelers arriving from six Gulf Cooperation Council countries: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. But the scope of theETA will be significantly expanded in 2025.1FromJanuary 8, 2025, citizens from 49 countries (including associated territories) may apply for an ETA.2Applications can be made fromNovember27, 2024. Thelist of impacted countriesincludes Australia, Brazil, Japan, Singapore, South Korea and the U.S. FromMarch 5, 2025, nationals from a further34 European countries and territorieswill be able to apply for an ETA for travel fromApril 2, 2025. The list includes most European Union countries (excluding Ireland), EFTA members and various microstates. European Union implementing EES ahead of ETIAS introduction The European Commission (EC) is introducing the European Travel Information andAuthorisationSystem (ETIAS) for visitors from countries that are not currently part of the EU.3As well asapplying to visits to EU Schengen member, ETIAS will also cover entry to members of the European Free Trade Association (EFTA) and to European microstates. Costing €7 and valid for threeyears, the ETIAS will act as a travel authorization for travelers not requiring a visa to visit Europe. It simply means moresecurity checks before permission to enter the EU is granted. Entry may bedenied to anyone arriving without an ETIAS. Once launched in mid-2025, travelers will enjoy a six-month transitional period, where an ETIAS will not be mandatory for travel. To facilitate the ETIAS, the EU must first introduce the new Entry/Ext System (EES), which aims to automate the registrationofnon-EU nationals each time they enter the EU. Planned forintroduction onNovember 10, 2024, the EES will apply to both short-stay visa holders and visa-exempt travelers. To use the EES, travelers will need a biometricpassport. The EES will not apply toEU nationals, nationals of Andorra, Monaco, San Marino and Vatican City, and to non-EU nationals meeting certain conditions, such as possession of residence cards/permits. (1)Gov. UK, Aug. 30, 2024; (2)Gov.UK, Sept. 10, 2024; (3)ETIAS The revenue appeal ofpremiumclassair travel First and business class travelers offer airlines a clear premium While first and business class (premium cabin) travelers may account for just3% of allpassengerscarried by scheduled airlines, because the fares they pay can on average befivetimes higherthan economy fares,