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Tag: conditions

  • Business Class Airfares Set to Skyrocket in 2026 Amid Robust Economic Conditions

    Business Class Airfares Set to Skyrocket in 2026 Amid Robust Economic Conditions

    The current solid economic situation is predicted to lead to a rise in the cost of business class travel during the year. Meanwhile, the prices for economy class are projected to stay relatively steady, according to market experts.

    American Express Global Business Travel Consulting has suggested that a robust demand may trigger a 7.4% surge in business class fares for routes from Asia to the Middle East.

    Routes from Asia to Europe could see a fare increase of around 4.8%, while a 3.4% hike is expected for Asia to Australia journeys.

    The consulting firm also noted that the highly popular route between India and Singapore might witness a significant rise in fares. The air passenger traffic on this route reached an all-time high in 2024, with more than 5.5 million passengers according to data from Singapore Changi Airport.

    American Express Global Business Travel Consulting further mentioned that a hike in business class fares from Singapore to the US is anticipated. From 2026 onwards, all flights departing from Singapore will be required to use sustainable aviation fuel.

    Predictions for the Future

    Linus Bauer, the founder of aviation consultancy BAA & Partners, anticipates that passenger traffic in the Asia-Pacific region will increase moderately by 4% to 6%, equivalent to 150-200 million passengers, taking the total tally to approximately 3.8 billion.

    He believes that 2026 will bring a more mature pricing environment where economy fares will gradually decline, while premium yields will remain relatively stable.

    In the high-density, price-sensitive markets of South-east Asia, South Asia and Oceania, Bauer anticipates that average economy fares will be 5% to 10% lower than in 2025. This decline is expected due to an increase in narrow-body capacity and a larger market share for budget airlines.

    On the other hand, business and first-class fares are projected to remain steady or improve modestly by 2% to 5%. This stability is predicted to be supported by a stronger demand for premium leisure travel and a resurgence in corporate travel.

    Challenges Ahead

    Rico Merkert, a transportation and supply chain management professor at the University of Sydney, warns that inflationary pressures, such as increased airport and labour costs, will burden airlines. These costs are likely to be passed on to passengers, resulting in higher airfares, unless jet fuel prices remain low.

    However, he adds that the continued expansion of budget airlines and new entrants into the low-cost segment should help maintain the affordability of air travel in the Asia-Pacific region in 2026.

    Questions & Answers

    What factors could potentially lead to a rise in business class fares?
    Strong demand and regulatory requirements to use sustainable aviation fuel are two factors that could drive up business class fares.

    What trends are expected in the economy class segment?
    Economy fares are projected to gradually decline due to increased competition from budget carriers and an increase in narrow-body capacity.

    How might inflationary pressures impact airfares?
    Inflationary pressures such as higher airport and labour costs could lead to a rise in airfares, as airlines are likely to pass these costs on to passengers.

  • Adidas’ slavery buster hopes technology can give workers a voice

    Adidas’ slavery buster hopes technology can give workers a voice

    As apparel and footwear industries rely heavily on outsourcing, sportswear companies have faced growing scrutiny. Adidas executive Aditi Wanchoo is on a mission – to wipe out any slavery in the German sportswear company’s supply chain, and she hopes giving workers the technology to speak out will help.

    With a background in corporate social responsibility at consultancy firm Accenture, Wanchoo was hired 18 months ago in a new position created by Adidas, one of the first companies to set up a role dedicated to fighting slavery.

    In recent years modern-day slavery has increasingly come under the spotlight, putting regulatory and consumer pressure on companies to ensure their supply chains are free of forced labour, child labor and other forms of slavery.

    As apparel and footwear industries rely heavily on outsourcing, sportswear companies have faced growing scrutiny.

    Wanchoo said Adidas had been actively working on this issue since it was revealed at the 1998 World Cup that footballs were produced by child laborers in India and companies realized they did not have control over their suppliers.

    Governments are now trying to tackle the problem with new legislation, such as the UK’s 2015 law requiring companies to disclose how they are ensuring supply chains are slavery free.

    “We have found that the UK Modern Slavery Act and recent legislative action in France and Australia have helped take the conversations to the boardroom,” Wanchoo told the Thomson Reuters Foundation in an interview this week in London.

    “My role was created to look at building relevant partnerships to continue our work on addressing potential modern slavery risks for our extended supply chain, i.e. our Tier 2 processing facilities and Tier 3 raw material sources.”

    Slavery has emerged as a major global problem with the Global Slavery Index by the Walk Free Foundation estimating there are nearly 46 million slaves in the world.

    The United Nations has a global goal to eradicate forced labor and slavery by 2030 and end all child labor by 2025.

    Wanchoo said she was tackling the issue in various ways such as collaborating with other companies, NGOs and governments, and training suppliers about the risks of bonded labor and the impact of recruitment fees on workers.

    Tech to give workers a voice

    She said Adidas was also on a major drive to encourage workers to speak up and use this information to eradicate slavery and improve workers’ conditions.

    The company already has “worker hotlines” giving 300,000 factory workers in China, Indonesia, Vietnam and Cambodia the opportunity to anonymously ask questions, make suggestions or express concerns via text messages and smart phone applications.

    But the company found this was not enough, and over the past year Adidas has run a pilot project in China with apps for workers to anonymously report issues – data that is collected and then analyzed.

    Wanchoo said the aim is to introduce such a system in all of the company’s 105 or so primary factories in the next five years and then look at cascading this down to second-tier suppliers.

    In Turkey these worker grievance systems had uncovered concerns about child labour and reports of illegal workers from Turkmenistan, while in Asia workers had complained about abuse by supervisors, wage issues and food, she said.

    She added that efforts to hear directly from workers was paying off. Last year campaign organisation KnowTheChain ranked Adidas top out of 20 firms, chosen because of their size, for its efforts to eliminate forced labor and human trafficking.

    “We want to make it as easy and anonymous as possible for workers,” said Hong Kong-based Wanchoo, whose official title is senior manager – development partnerships, social and environmental affairs at Adidas.

    She acknowledged this did not always go down well with suppliers who aim to keep costs as competitive as possible.

    “Sometimes there can be resistance from suppliers, but we work with them to demonstrate how this can help them in the long run by improving supply chain transparency, communication, productivity and worker retention,” she said.