You know you’ve made it when there’s an index named after you (even if you name it yourself). Enter the Turner Index, the brainchild of Flight Centre Travel Group’s CEO and founder, Graham ‘Skroo’ Turner. And the latest news? International airfares are getting back to pre-COVID affordability levels, meaning Aussies can once again dream of far-flung destinations without breaking the bank.
The Turner Index compares the cost of a headline fare from Sydney to London with the average Australian weekly wage, giving us a snapshot of airfare affordability over time. Right now, we’re looking at just four days’ pay for the average Aussie to jet off to the UK. While that’s a day more than pre-pandemic levels, it’s still a huge improvement from 20 years ago when the same flight would have set you back nearly one-and-a-half weeks’ wages. And if you thought things were tough now, spare a thought for those in 1947, who had to work for a staggering 78 weeks to make the same journey.
With Australians reprioritising travel, these improving fare trends are your ticket (pun intended) to entice more clients into long-haul travel.
Airfare affordability: A brief history of wallet pain
The Turner Index gives us a fascinating look at just how far we’ve come. Back in 1947, when Qantas launched its first flight to London, the average Aussie would’ve needed to work for a year-and-a-half just to afford a return ticket. Fast forward to 50 years ago, and that trip still required five to seven weeks’ worth of pay.
Fast forward again to today, and things are looking much rosier. As of August 2024, a Sydney-London fare costs the equivalent of just four days’ pay. Sure, that’s a little more than the three days it cost five years ago, but it’s a far cry from the days when you had to essentially mortgage your future for a ticket.
“Pre-COVID, airfares seemed to be one of the few products that defied inflation,” Turner, the man behind the index, said. While the cost of everything else was going up, flights stayed affordable — or at least stable — because wages kept rising. Now, after a few rocky years, that trend is finally coming back.
The COVID hangover: Prices and recovery
As we all know too well, COVID-19 turned the travel industry upside down, and airfare prices weren’t spared. With fewer planes in the sky and travel restrictions tightening the noose on competition, flights got pricier. But according to Turner, those days are numbered, and airfares are getting back to normal.
The numbers back this up: Flight Centre revealed that between January and June 2024, average international economy fares sold in Australia dropped by 13% compared to the same period in 2023. While we’re not quite at 2019 prices yet, the trend is clearly heading in the right direction.
“We want the cost of airfares to keep going down for our customers,” Turner said. And competition will play a big role in making that happen.
The good news doesn’t stop there. Airlines are already prepping for next year by releasing early bird deals for 2025 travel to Europe and the UK, meaning fares could soon fall even further. For travel agents, this is prime time to get ahead of the game by securing these deals for clients looking to plan big trips next year.
What does this mean for travel professionals?
These trends aren’t just for the history buffs and data geeks. For travel professionals, they’re your golden ticket. With airfare affordability bouncing back, your clients are more likely to choose travel as their discretionary spend of choice.
Turner’s point is clear: travellers are saving and planning for their next adventure, and now is the perfect time for agents to capitalise on that wanderlust.
“Early bird deals are coming,” Turner reminds us, and that’s music to the ears of anyone booking trips to Europe and the UK.
This is your chance to get those clients excited about long-haul trips. Use these fare trends to your advantage, whether it’s promoting early bird deals or keeping an eye on new airline routes that could mean more affordable flights for your customers. After all, a cheaper airfare means more room in the budget for upgrades, extended stays, or that fancy glass of wine at 35,000 feet.
What’s next?
Looking forward, it’s not hard to imagine even more affordability on the horizon. Turner predicts that as airline competition increases and more flight routes open up, the cost of long-distance travel will continue to drop. That means more opportunities for your clients to book those bucket-list trips—without the sticker shock.
“We’re only going to see airfares drop if competition and capacity increase,” Turner said, and that’s exactly what the industry is hoping for. The more airlines compete for passengers, the better it is for your clients. And for you.
If the Turner Index proves one thing, it’s that the world is becoming more accessible again, one fare at a time. For travel agents, this is your moment to get ahead of the curve. Airfare affordability is improving, early bird deals are coming, and Aussies are eager to travel.
Now’s the time to lock in those flights for your clients while fares are still low. Keep an eye on future discounts and upcoming route announcements, and make sure your customers are first in line to take advantage of all the savings. The skies are calling—make sure your clients are ready to answer.
