Big changes ahead for business travel in 2024
Business travel is set to stay strong in 2024, according to one of Australia’s top industry experts.
Mid-year, we can expect a wave of changes, with more flights and tougher competition between airlines—meaning airfares are set to drop. More savings, more reasons to hit the skies for business!
What’s new for business travel in 2024?
Tom Walley, Global Managing Director of Corporate Traveller, says: “The business travel industry is thriving and is already seeing significant changes. Premium fares have already dropped, and economy fares are likely to come down by mid-2024 as international carriers increase flight capacity."
"We're seeing travellers take advantage of the ability to combine business and leisure travel. Additionally, there is a focus on face-to-face meetings and team collaboration, given the evidence that in-person meetings are the most productive way for businesses to operate. Overall, 2024 promises good news for business travellers.”
1. Business travel stays strong despite economic fluctuations
While the economic outlook is uncertain, business travel isn’t slowing down. In fact, lower airfares in 2024 will give budget-conscious flyers more options to keep their travel game strong.
A recent Corporate Traveller survey found that 91% of SMEs are sticking to their travel plans, no matter what the economy’s doing.
Plus, a Global Business Travel Association survey from October 2023 revealed that around 70% of corporate travel buyers are either keeping or bumping up their travel program budgets for 2024[1]. The message? Business travel is here to stay.
2. Premium flight prices drop offering significant savings
Tom has observed a decrease in prices of business class seats to hot spots such as London and New York for the first time since the pandemic. We’re talking savings of up to 60% depending on the booking time and flexibility.
Tom's advice? Use a travel management company to find the best deals and stay flexible with travel dates, times, and airlines.
3. International demand continues strong while seat availability softens prices
International travel isn't going anywhere in 2024, but the good news? More seats mean lower prices. Tom’s predicting lower fares thanks to increased competition, especially with Chinese carriers making their big comeback to Australian cities.
All eight airlines that flew to Sydney pre-pandemic are back, with the final carrier, Sichuan Airlines, rejoining the pack at the end of October 2023[2]. Plus, China Eastern and China Southern are back in Brisbane[3].
With a 25.6% boost in available seats in September 2023 compared to last year[4], Tom advises planning ahead and booking early for your overseas trip, especially for peak travel periods such as European and North American summer.
4. Regional business travel maintains rapid growth
Recent research from Corporate Traveller shows a 29% spike in regional travel bookings, with some routes growing by over 60%. Tom's not surprised – he’s predicting this regional surge will continue at these elevated levels.
The mining industry, especially the push for critical minerals used in renewable energy infrastructure, is believed to be behind this boom. Nine of the top 10 fastest-growing routes were in Queensland where there has been high investment in regional industry, such as mining and tourism. It’s all systems go for regional travel in 2024!
5. Bleisure travel on the rise
As flight capacity grows, and in-person collaboration remains a priority, employees are taking advantage of extending their business trips for leisure purposes.
Corporate Traveller’s booking data shows that short, quick trips (1-3 days) dropped by 3.9%, but longer trips (4-6 days) are on the up, with a 4.6% increase year-on-year. In fact, Corporate Traveller saw a 5.8% growth in six-day trips. Looks like bleisure is here to stay, and it’s only going to keep growing into 2024.
6. Brisbane overtaking Perth as the top international business travel destination
Corporate Traveller’s booking data from 2023 also indicated a 34% growth in international business travel in Perth, compared with Brisbane at 25% and Adelaide at 21%. Melbourne and Sydney, on the other hand, grew by less than 10%, but that’s set to change.
By mid-2024, Tom 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 revealed it will see further flights added in September 2024[5].
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[1] GBTA Business Travel Industry Outlook Poll | Global Business Travel Association
[2] Return of Sichuan Airlines marks full recovery of 8 Chinese carriers – Sydney Airport
[3] China Eastern Airlines touches down in Brisbane | Department of Tourism, Innovation and Sport (dtis.qld.gov.au); China Southern Airlines begins direct flights from Guangzhou to Brisbane - Asian Aviation
[4] Domestic aviation activity | Bureau of Infrastructure and Transport Research Economics (bitre.gov.au)
[5] Victoria to benefit from more non-stop flights from China | Victoria State Government Jobs Skills, Industry and Region