Business travel is projected to remain robust in 2024, and a prominent industry expert in Australia foresees intriguing developments unfolding around mid-year. Anticipated enhancements in capacity and intensified competition among airlines are poised to drive down airfares, providing an additional impetus for business travel.
Outlined below are six of the latest travel trends across Australia:
Despite economic uncertainties, business travel will persist as a top priority. The prospect of lower airfares in 2024 will offer more choices for financially prudent business travelers. A recent survey by Corporate Traveller revealed that 91 percent of SMEs plan to continue traveling despite economic pressures. Additionally, a survey by the Global Business Travel Association in October 2023 indicated that around 70 percent of corporate travel buyers anticipate increasing or maintaining their travel budgets in 2024.
Expect a further decrease in premium international flight prices. Notably, there has been a decline in the cost of business class seats to destinations like London and New York for the first time since the pandemic. Prices have seen reductions of up to 60 percent, contingent on booking time and flexibility. Recommending the use of travel management companies to secure the best prices, the expert emphasizes the importance of flexibility in travel dates, times, and airlines.
International demand is anticipated to persist in 2024, but seat capacity will moderate prices. The expert suggests that prices will decrease in the coming year due to heightened competition, especially with the return of Chinese carriers to Australian capital cities. All eight Chinese airlines that operated in Sydney before the pandemic have now resumed operations, with the final carrier, Sichuan Airlines, marking this milestone in October 2023. Existing carriers are also expanding their capacities, with available seats up by 25.6 percent in September 2023 compared to the same period last year. The expert predicts heightened demand during peak travel periods, such as the 2024 European and North American summer, and advises business travelers to plan and book well in advance for popular routes.
Regional business travel is expected to sustain rapid growth. Following recent research by Corporate Traveller revealing a 29 percent surge in regional travel bookings, with some routes experiencing growth of over 60 percent, the expert predicts that regional travel will continue at these elevated levels. The flourishing mining industry, particularly in critical minerals for renewable energy infrastructure, is believed to be the driving force behind this boom. Nine of the top 10 fastest-growing routes were in Queensland, where substantial investments in regional industries like mining and tourism have taken place.
The trend of combining business with leisure (bleisure trips) is on the rise. As flight capacity increases and collaboration remains a priority, employees are extending their business trips for leisure purposes. Corporate Traveller's booking data indicates a drop of 3.9 percent year on year in one to three-day trips between May and October 2023, while four to six-day trips increased by an average of 4.6 percent year on year. Specifically, six-day trips saw a notable growth of 5.8 percent. This trend is expected to continue into 2024.
Brisbane is projected to surpass Perth as the most popular destination for international business travel. Corporate Traveller's 2023 booking data indicated a 34 percent growth in international business travel in Perth, compared to less than 10 percent growth in Melbourne and Sydney, 25 percent in Brisbane, and 21 percent in Adelaide. By mid-2024, the expert expects Brisbane, Sydney, and Melbourne to outpace Perth's growth rates with the return of Chinese airlines. Sydney and Melbourne have fully reinstated services with these Chinese carriers, and the Victorian Government has announced further flight additions in September 2024.
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