With hybrid and remote work policies only set to increase, FCTG’s Corporate Traveller looked at global trends, new customer travel habits and tech to predict the overarching business travel trends in 2023 and beyond.
Australia’s corporate sector has accelerated the recovery of business travel and events as in-person meetings, conferences and networking returned in 2022.
Corporate Traveller Global MD Tom Walley said the 2022 travel recovery is paving the way for emerging trends in both business and travel for the Australian market in 2023.
Domestic air travel costs go down
Capacity and competition are key with domestic travel costs to decrease while international flights will remain high until Chinese carriers come back online. Hotel and car rental capacity will also increase early next year.
Domestic travel costs in the US have started to plateau and fall and Mr Walley expects the same to occur in Australia next year. He predicts Chinese carriers will return by mid-2023, bringing competition and flight capacity back to circa 90 per cent of pre-COVID levels.
Middle managers take flight again
Middle management will also return to the skies in 2023, following the lead of executives and essential workers. Businesses will also book further in advance as concerns about COVID infection rates and restrictions fall.
“We are beginning to see businesses booking travel 40 days in advance at Corporate Traveller – from 30 days during the height of the pandemic – as a result of improved confidence and a way to reduce travel costs,” Mr Walley said.
Remote and hybrid work here to stay
However, work-from-anywhere policies will increase and hybrid arrangements will remain as office occupancy rates fluctuate in 2023 as more businesses return to the office full-time, for collaboration and accountability reasons.
“Flight Centre’s corporate divisions, including Corporate Traveller, recovered healthily in the 2022 financial year, outperforming the industry’s time to value recovery and with transaction volumes having returned to circa 90 per cent of pre-COVID levels,” Mr Walley said.
“From next year, the business travel industry will continue capitalising on its post-COVID growth and success as businesses and employees gain more confidence to return to the office and the skies.
“The travel journey will become more digitised and new industry partnerships will emerge to improve and expand the choices available to travellers.”
Read how Aussie SMEs plan to step up for sustainable business travel initiatives in 2023.
For more info, head to corporatetraveller.com.au
