Business travel across Australia is continuing to be treated as a non-discretionary expense, even as companies face increasing costs, geopolitical disruption and more scrutiny on spending. According to two large travel operators.
Recent industry reporting highlights that, rather than pulling back on business travel, organisations are placing greater emphasis on outcomes, productivity and business growth. Companies are still sending employees out to meet clients and stakeholders, because travel is viewed as essential to maintaining operations and building relationships.
Corporate Traveller figures indicate that 84% of travel buyers expect spending to increase or hold steady. The organisation’s global managing director Tom Walley said the shift is not about whether companies travel, but how they do it. He noted: “The question isn’t whether people are travelling for business — they are… it’s critical to business growth and survival.”
This sentiment is echoed more broadly across the sector. Industry analysis from Flight Centre’s corporate division shows that business travel continues to be regarded as a core driver of client engagement, deal-making and organisational performance, even during periods of economic pressure.
According to FCM, Flight Centre’s corporate travel arm, more than 80% (similar to Corporate Traveller’s 84%) of companies are either maintaining or increasing their business travel budgets.
FCM Global Corporate COO Melissa Elf cited feedback from their customers, “Our clients are telling us that they’ll be spending the same, if not more for the new financial year.
At the same time, travel behaviour is evolving. Companies are becoming more selective, with a stronger focus on return on investment (ROI) for each trip. Instead of frequent short journeys, organisations are consolidating travel into fewer, more purposeful trips, often combining multiple meetings, events or site visits into a single itinerary.
Accommodation and travel choices are also shifting. Business travellers are increasingly prioritising practicality and productivity over luxury, favouring hotels with strong connectivity, proximity to meetings and flexible booking conditions.
Geopolitical disruption and rising costs are adding further complexity. Airlines are adjusting routes due to Middle East tensions, while fuel price increases and operational challenges are pushing up fares. Despite this, corporate travel demand remains resilient, with companies adapting policies rather than cutting travel altogether.
Industry experts say this reflects a broader realisation: face-to-face interaction remains critical to business success, particularly for negotiations, client relationships and large-scale events.