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According to a new report, business travel is surging as Australian businesses reinvest in face-to-face connections to strengthen both internal and external relationships.
New research from SAP Concur has shown that Australian businesses are increasingly investing in reconnecting face-to-face connections, placing a greater focus on in-person meetings and industry events.
“SAP [research] found that global business travellers enjoy business trips, and 67 per cent believe travel is critical for career growth,” said Jonathan Beeby, managing director at SAP Concur Australia and New Zealand.
“SAP Concur’s own data shows clear patterns in local travel demand, reflecting how organisations are prioritising meaningful connections and business development while managing costs.”
“Domestic airline ticket sales surged by 70 per cent from December 2023 to January 2024, with a further 49 per cent rise in domestic bookings in February before a 25 per cent decrease in March, with demand peaking again in October.”
According to SAP Concur, the increases highlight a direct strategic approach to business travel based upon both seasonal demand and key industry events. This, however, opens up a new challenge for businesses that have to control travel costs during trying economic times.
“Managing travel costs as demand and need changes is essential for organisations. SAP Concur’s own data shows that domestic airfare prices fluctuated throughout the year, with February reaching an average ticket price of $426 before dropping to $422 in March,” Beeby said.
“July brought some relief as fares decreased to $392 on average before spiking to $447 in October when demand was highest and falling back to $376 by December.
“These fluctuations likely reflect the impact of seasonal demand, fuel costs, and broader economic conditions, prompting companies to closely monitor travel expenses while balancing the need for in-person meetings and corporate mobility.”
Beeby explained that international business travel also displayed a “similar trajectory” to that of domestic travel.
“SAP Concur’s data shows that ticket sales increased by 53 per cent from December 2023 to January 2024, with a further 31 per cent increase recorded in February.
“International ticket sales peaked in May before reaching a low in December, though there was a 22 per cent year-over-year (YoY) increase from 2023. International airfares remained stable for most of the year; however, prices peaked in December at $2,759, while June saw the lowest average fares at $2,071,” he said.
Overall, Beeby argues that organisations that embrace business travel for that face-to-face interaction will also receive benefits in relation to employee engagement, satisfaction, and productivity, as business travellers return refreshed and motivated.
“The resurgence of corporate travel reflects a clear need for in-person engagement. Companies are prioritising business travel to strengthen relationships, close deals, and build their presence in key markets. Looking ahead, companies are fixing their travel management strategies to keep pace with the sustained growth in bookings, and a centralised approach to managing travel and expenses is essential,” Beeby said.
“Companies that bring travel, expense, and invoice data into a single system are better able to control costs, track spending in real time, and reduce administrative inefficiencies. Simplifying reporting and automating approvals also improves compliance and reduces manual workloads, giving finance teams more time to focus on higher-value priorities as demand for travel remains strong.”
Kace O'Neill
Kace O'Neill is a Graduate Journalist for HR Leader. Kace studied Media Communications and Maori studies at the University of Otago, he has a passion for sports and storytelling.
