Construction travel is booming according to fresh data, which is driven by major transport, renewable energy, and water infrastructure projects

Fresh data from the Australian Bureau of Statistics data shows that whilst residential building commencement fell in the September 2023 quarter^[1], Engineering Construction Activity data – which encompasses infrastructure activity – rose in both the work completed (2.6 per cent) and value of work commenced (1.7 per cent), to a total of $30.34 billion in the same quarter^[2].

Flight Centre Corporate MD for ANZ/Global FCM COO Melissa Elf said headlines on the construction sector, and cost and resource challenges had not impacted the industry’s air traffic, in fact, the opposite was true.

“We know house builders are facing trying times, but infrastructure construction is moving at a faster rate than we’ve seen in a long time, particularly as the infrastructure focus shifts to renewable energy projects,” Ms Elf said.

“Travel is clearly a critical facet for construction companies, particularly those in the infrastructure space, even more so with so many contracts still up for grabs across the country that require feet on the ground. You're not going to win business from behind a desk.

“You just have to look at the pipeline of work to see that there will be no slowing of activity for the next 5-10 years and beyond.

“Infrastructure Australia has reported the energy infrastructure project investment is forecast to increase fourfold over the next four years^[3].

“The value of construction work is a key indicator of the health of economies and based on what we’re seeing as an ongoing growth trend of travel in the industry, it’s a really positive sign.”

Infrastructure Australia’s Market Capacity Report has shown infrastructure activity to represent 74 per cent of all construction activity, at an anticipated value of $691 billion over the five years to June 2027^[4].

The report highlighted an increased government investment in infrastructure projects, and a large pipeline of publicly funded priority projects across road and rail, water, renewable energy, education, and health^[5].

Ms Elf said the data from FCM Travel and Corporate Traveller highlighted a trend in companies booking more travellers for every trip than they had in the previous year.

“In 2022, we were seeing construction companies booking an average of two or three staff members per trip. In 2023, that number was closer to four people per trip,” Ms Elf said.

“It speaks to this increase in large infrastructure projects, that quite simply, need more people on the ground – be it consultants, engineers, subcontractors, or designers.”

FCM Travel and Corporate Traveller also found that 17 per cent of all construction-related travel was departing from Brisbane.

“More than one in every six construction travellers are leaving from Brisbane, this is more than the rates coming out of either Sydney and Melbourne, which typically take the largest share of corporate travel in other sectors,” Ms Elf said.  

“This tells us a couple of things. Firstly, there is plenty of construction and infrastructure activity happening across Queensland, but also, we’d expect it to reflect a lot of contracts being won by Queensland-based companies that are moving around the country servicing these major projects.

[1] ABS Building Activity, September 2023

[2] ABS Engineering Activity, September 2023

[3] Infrastructure Australia, Infrastructure Market Capacity 2023 Report

[4] Infrastructure Australia, Infrastructure Market Capacity 2023 Report

[5] Infrastructure Australia, Infrastructure Market Capacity 2023 Report

About Flight Centre Travel Group

The Flight Centre Travel Group is one of the world’s largest travel retailers and corporate travel managers. The company, which is headquartered in Brisbane, Australia, has company-owned leisure and corporate travel business in dozens of countries, spanning Australia, New Zealand, the Americas, Europe, the United Kingdom, South Africa, the United Arab Emirates, and Asia. ASX listed Flight Centre Travel Group (FLT) also operates the global FCM corporate travel management network, which extends to more than 100 countries through company-owned businesses and independent licensees, along with Corporate Traveller, the flagship business specific to the small-to-medium-sized enterprise sector. For more information, visit fctgl.com.