ACCORDING to flight booking data from Corporate Traveller, the major small-and-medium business travel division of Flight Centre Travel Group (FCTG), Brisbane is now Australia’s top business and leisure – dubbed ‘bleisure’ – travel destination.

The travel growth to favour Brisbane over Sydney and Melbourne has been spectacular, according to Australia-based global managing director of FCTG’s Corporate Traveller, Tom Walley, reflecting the city’s strong economic growth.

Corporate Traveller analysis of flight booking data from October 2023 to March 2024 revealed inbound travellers to Brisbane were now spending an average of 5.2 days, outpacing Sydney’s 4.1, and Melbourne’s 4.6 average days. 

Brisbane has even trumped the Gold Coast and Sunshine Coast in the ‘bleisure’ stakes (at 4.5 and 4.6 days respectively), according to a year-on-year comparison of business travel booking data collected by Corporate Traveller. The city’s buoyed economy is a key factor.

Brisbane currently has the highest density of innovation hubs per capita with manufacturing exports and growth outpacing the rest of the country. A recent economic report predicted its economy would further soar by 68 percent over the next 20 years¹ .
 
The Corporate Traveller analysis further showed that business travellers in Queensland’s critical economic sectors such as mining, oil, and gas made up 17 percent of bookings in the six months through the end of March, followed by those in the construction sector (16%), health care and social assistance (12%), services (10%), and manufacturing (9%). 
 
Further figures show business bookings have swelled by seven percent year-on-year. 
  
May was Small Business Month in Queensland, and Mr Walley said the numbers revealed a unique opportunity for the city’s SMEs, “especially given Brisbane’s ability to captivate visitors for durations that extend well beyond the work week”.  
 
“Brisbane has become one of the nation’s most thriving cities over the past couple of years and that’s partially thanks to mass migration from southerners craving sunshine and a more relaxed lifestyle during the pandemic² – partly thanks to the allure of the upcoming 2032 Brisbane Games³.
 
“Both the Games and booming population mean more homes and a lot of infrastructure needs to be quickly constructed in and around the city, which is one of the reasons why business travellers in the construction sector were the second largest cohort of travellers to the Queensland capital over the past year,” Mr Walley said. 

“And with mining being the state’s biggest industry, at more than $86 billion, it’s no surprise this sector collected the most business traveller bookings.

“Add the city’s extraordinary infrastructure injection into tourist hot spots such as Queens Wharf and its burgeoning restaurant scene and it’s easy to see how the once ‘big country town’ of Australian capitals has overtaken its bigger southern counterparts to become the ‘bleisure’ epicentre,” he said.
 
“For the city’s small and medium-sized businesses, this presents a chance for SMEs to get to know what business travellers want and what our savviest customers are looking for.” 
 
Recent data from Corporate Traveller highlighted that business travellers were increasingly focusing on maximising value and getting the most out of their ‘bleisure’ trips.
 
“The business travel sector continues to thrive, with more corporate travellers choosing hotels that offer reward programs and extra value, particularly as travel expenses have risen,” Mr Walley said.

“By making informed choices and booking a few weeks in advance to secure better rates, our clients are saving thousands on corporate travel. These savings allow them to extend their city stays and contribute more to local economies.”

www.corporatetraveller.com.au

SUPPORTING INFORMATION

1  https://beda.brisbane.qld.au/news-and-events/state-of-the-city-launch
2  https://www.abs.gov.au/statistics/people/population/regional-internal-migration-estimates-provisional/latest-release
3  https://www.infrastructure.gov.au/infrastructure-transport-vehicles/brisbane-2032-olympic-paralympic-games 

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AUSTRALIAN tourism businesses are facing sky-high increases in marketing costs as the country struggles to regain its hold on a once-strong export earner, according to the Australian Tourism Export Council (ATEC).

ATEC managing director Peter Shelley said while the flow of overseas holiday makers was yet to return to 2019 levels, Australian tourism businesses were spending up to twice their pre-Covid budgets on marketing activities to lure international visitors back. 

“We always knew the restart of tourism would be tough – shutting borders effectively closed many tourism businesses servicing international markets – and more than two years on we are still working hard to revive our visitor markets,” Mr Shelley said.  

“More recent headwinds have added to the challenge with geo-political, environmental, aviation and economic concerns putting pressure on decisions to travel. 

“For Australian tourism businesses in particular, the costs of marketing their product in Europe or the US have increased significantly, and this is really showing in our ability to hold space in the international travel marketplace.” 

A recent survey by ATEC found more than three quarters of export tourism businesses had seen increases in their marketing budget of more than 20 percent with a quarter now facing marketing budgets double their 2019 spend. 

Businesses are citing pressures including increased spending by competitor destinations, exchange rates, cost of attending trade shows, advertising costs and overall business travel expenses as major contributors to marketing budgets. 

“While we are seeing pressures on individual businesses, the cost of marketing Australia to a global audience has also increased for our marketing agencies who are now needing to significantly increase their advertising spend to maintain ‘top of mind’ awareness for intending international travellers,” Mr Shelley said.

“As we move towards this year’s Federal Budget, we are seeing agencies such as Tourism Australia trying to do more with much the same budget, in real terms, they’ve been working with for the past decade. 

“While many of our competitors have doubled down on their tourism marketing spend, Australia has seen state tourism budgets trimmed and the collective pool of marketing funds to promote Australia to high spending international travellers shrink in real terms.” 

Mr Shelley said he hoped the Federal Government will recognise the return-on-investment export tourism creates by increasing Tourism Australia funding in next week’s budget.   

“Failing to invest in tourism is failing to invest in an Australian success story,” he said. “We should not forget that in 2019 tourism’s GDP grew by 3.5%, outpacing the national GDP and that is an economic benefit we are currently missing out on. 

“We call on the Federal Government to support tourism, to support the economy by helping tourism businesses across Australia to get back to into the market and get back to doing what they do best.” 

www.atec.com.au

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CORPORATE travel bookings to the Formula 1 Rolex Australian Grand Prix this weekend are up 146 percent on last year. And that is in spite of significant rises in business operating costs and reductions in overall corporate hospitality expenditure.

What is the magic formula that gives the F1 Australian GP a special place in the corporate hospitality pecking order? According to business travel organiser, Corporate Traveller, domestic corporate bookings account for 90 percent of the event, with Canberra bookings jumping by a massive 300 percent on last year. 

Corporations are paying from $1550 to $4595 per ticket to host clients for the main race day. They paid up to $6550 per person for two- to three-day passes, which were almost sold out two weeks in advance¹. 

Air travel data showed a 146 per cent jump in bookings around the four-day event compared with last year. General admission sold out within two hours¹. According to Corporate Traveller global managing director, Tom Walley, who is based in Australia, the figures demonstrate the value of investing in major events as a way of retaining key business connections and developing new relationships, even in uncertain economic conditions.

“It’s been a hard couple of years for many businesses, but our data strongly suggests that businesses across the country see value in major events like the Grand Prix,” Mr Walley said.

“This year, we have seen a massive increase in attendance by Canberra-based corporates compared with last, however, the majority of bookings are still from Sydney, followed by Brisbane, across both years. While expensive, events like this are a prime opportunity to network, nurture existing relationships and develop new business and sponsorship opportunities. Savvy businesses from all over Australia are beginning to make the most of those benefits.”

Research by Corporate Traveller, part of the Flight Centre Travel Group, compared corporate inbound and outbound flight bookings from March 20-25 to capture travel to the four-day event. It found the Thursday (March 21) is the busiest day, with 25 percent of all bookings scheduled. 

Businesses under financial pressure

Over the past two years, businesses have been hit by much of the same financial pressures as Australian households² with multiple interest rate rises and increases in the cost of fuel and materials, Mr Walley said.

Cautious consumers and efforts to retain staff in a competitive environment of skills shortages have added to the pressure. Increasingly, he said, businesses facing profitability challenges were drawing down on cash buffers to support their operations or service debts³, with the failure rate of businesses expected to rise from 4.2 percent to 5.8 percent of all businesses by November this year⁴.  

He said amid the widespread downturn, the travel, hospitality, and entertainment sectors might outperform other sectors in 2024. With food and drink, entertainment, and travel and experiences noted as categories where individuals were most inclined to increase their spending.⁵

Networking and marketing a priority

With the focus firmly on networking and brand exposure, corporate bookings between 20-25 March this year were up 146 percent on bookings for the six days before, during and after the 2023 Grand Prix (March 29 to April 3). Of those, only 9 percent were international and 91 percent were local.

Of local bookings in 2024 compared with 2023, Canberra jumped by 300 percent, Adelaide by 226 percent, Brisbane by 191 percent, Perth by 177 percent, and Sydney by 194 percent. Sydneysiders made up 36 percent of all bookings.

Mr Walley said corporate travellers have a variety of exclusive events to choose from, and none of them come cheap.  The Australian GP offers a choice of 19 exclusive experiences, including a three-day Red Bull Energy Station experience at the top price of $6550 per person. The Red Bull Energy Station is held in a two-storey facility with views of the pit exit and main straight. The experience includes dining, drinks, DJs, entertainment and appearances from the Red Bull racing team⁶.

The least expensive three-day experience was The Park at $2195 per ticket, including dining, DJs and an outdoor viewing deck⁷.

Crowd-breaking records and a stellar line-up

In 2023, 444,631 people attended the Australian GP over four days, a record attendance for Melbourne⁸. Higher numbers are expected to flock to the Albert Park Lake circuit this year with race-day tickets selling out in a couple of hours⁹. The Albert Park circuit can hold an estimated 125,000 people per day, including 44,000 seated.

“Business owners recognise the importance of investing time and money into their team and associates for long-term gains,” Mr Walley said.

“Grand Prix attendance has grown exponentially over the past couple of years as businesses recover, maintain and grow in a tumultuous economic climate. This is one expense that has the long-term potential to relieve financial pressure as well as give businesses and their employees a morale boost and something exciting to look forward to.”

www.corporatetraveller.com.au

REFERENCES

[1] 2024 Australian Grand Prix race day tickets sell out in two hours (raceweek.com.au)

[2] https://www.rba.gov.au/publications/fsr/2023/oct/pdf/02-household-business-finances-in-australia.pdf

[3] https://www.rba.gov.au/publications/fsr/2023/oct/pdf/02-household-business-finances-in-australia.pdf

[4] https://creditorwatch.com.au/blog/business-conditions-ease-further-maintaining-a-slow-downward-trend/

[5] https://www.cosboa.org.au/post/resilience-amidst-challenges-cosboa-and-square-release-2023-small-business-data-report

[6] Red Bull Energy Station, FORMULA 1 ROLEX AUSTRALIAN GRAND PRIX 2024

[7] The Park, FORMULA 1 ROLEX AUSTRALIAN GRAND PRIX 2024

[8] Record Melbourne crowds attend chaotic 2023 Formula One Australian Grand Prix – Drive.com.au

[9] 2024 Formula One Australian Grand Prix race day tickets sold out – Drive.com.au

ENDS

BUSINESS TRAVEL is continuing its growth, with a projected 188 percent rise in the next five years, according to research by Statistia on the size of the global travel market by 2028¹.

Alongside this trend, the costs associated with doing business, including travel, have also grown. In response to these trends, seasoned international business travel expert, Saskia Boxem, has nine ‘hacks’ to offer – from taking flights on the half-hour mark and early weekdays, to booking eight days in advance – to help businesses get more value out of their travel in the next financial year.

Ms Boxem is the NSW/ACT head of customer success for Corporate Traveller, the flagship small and medium enterprise (SME) travel management division of Flight Centre Travel Group.

“Part of our service is to create the best, most cost-effective travel management plans for clients,” Ms Boxem said.

“As travel experts, we know the tricks of the trade to secure the most convenient, cost-effective travel options for corporates that travel regularly. I’m pleased to recommend a few money-saving hacks that have been tried and tested by business travellers over the years. 

“Corporate Traveller has helped more than 6,500 businesses with their travel through a whole suite of offerings, from expert advice through dedicated travel managers and 24/7 support, to innovative booking technology and AI-powered travel assistants. Our team knows that, ultimately, service, efficiency and value are priceless for businesses, which is why many of these hacks will also improve the travel experience and save our client’s time.”

Nine insider hacks to cut costs on business travel:

1. Save up to 20 percent on airfares by booking 8-14 days ahead. Corporate Traveller’s own experience shows that the cheapest domestic airfares are those booked 8-14 days before departure. Airlines tend to release cheaper seats around this time to fill their flights. Given business meetings are often arranged one to two weeks ahead, this hack is more useful to businesses than leisure travellers. 

2. Book flights on the quarter-hour or half-hour for cheaper fares. Corporate Traveller’s veteran business flyers swear by this rule, and they put this down to a classic case of supply and demand. Flights that leave on the hour are more costly, as they are booked more frequently. For example, an executive assistant or travel booker might be instructed by management to book a flight at 8am, and they will simply book a flight at that exact time. By booking flights 15 or 30 minutes either side of the hour, travel bookers can find a less busy, and therefore more affordable, option.

3. Book early-week flights. Google Flights data shows that, on average, flights that depart on Monday, Tuesday or Wednesday have been 12 percent cheaper than weekend departures (based on the Google blog How to find the best deal on your next flight)². This hack will be useful for business travellers who have the flexibility to book early-week meetings. Late-week flights, while more expensive, come with other bonuses: a traveller may be paying more for a Friday flight, but they have the added advantage of tacking on a weekend away in that destination.  

4. Stick to one or two airline rewards programs. It’s tempting to sign up to every rewards program out there, but Corporate Traveller recommends maximising just one or two of the major ones and growing your membership status within them. The most covetable perks in these programs – such as the first pick of seats, additional luggage and business lounge access – are available for members that reach gold or platinum status, which is difficult to achieve across multiple programs. The major programs, such as Qantas Frequent Flyer, allow you to accumulate and redeem points when flying with a broad range of alliance partners. 

5. Negotiate prices across your travel suppliers every 24 months. Many businesses have a ‘set and forget’ approach to their travel policies. This year, Corporate Traveller has seen several policies that have not been updated since 2019. If you’re looking to reduce your business’s travel budget in FY24, it’s worth negotiating prices and scope of services with providers – such as hotels and car hire companies – set out in your policy. It may be worthwhile switching to providers that offer better value. Whichever way your business travel has changed over the past few years, you should have a travel policy to match it.

6. Use the ‘five-block rule’ to cut costs for city bookings. To save on hotels and restaurants in cities, avoid booking within five blocks of the CBD. When looking for an alternative, choose areas with good public transport and easy access back into the CBD. For instance, Corporate Traveller often recommends the Greenwood Plaza district of North Sydney as a convenient lower-cost location for business travellers, due to its plentiful and reliable public transport options, amenities, and proximity and easy access to the CBD.

7. Bundle your trips. Since the pandemic, many of Corporate Traveller’s own customers have changed the frequency and length of their trips. While same-day trips were hugely popular in 2019, weekly trips are taking over, as businesses bundle several meetings in a single two- or three-day trip – and occasionally a leisure trip tacked onto the end. 

8. Flexibility trumps loyalty for cutting costs. Sticking to the same hotel group or airline because you’re on a loyalty program can give you unique perks and deals but may not equate to cheaper travel over the year. Regularly compare prices with other travel providers to ensure you have the best value. Alternatively, set a cost cap for travel and allow your employees to pick their own hotels and flights. This gives travellers ownership over their business trips and better employee satisfaction, while ensuring costs meet an agreed rate. 

9. Join value-add programs and sign up to travel newsletters. It’s worth selectively signing up to hotel and airline e-newsletters to keep on top of sales and discount codes exclusive to subscribers. For example, Qantas recently announced its Companion Sale – discounted rates on pairs of travel bookings – in its newsletter. Businesses can pass these offers to their travel management provider, such as Corporate Traveller, to book the special price on their behalf. A good travel management provider should also offer deals for its customers. Corporate Traveller’s SmartStay program, for instance, offers exclusive hotel deals, with add-ons including free breakfast, late checkout, and upgrades where available. 

www.corporatetraveller.com.au

References:

[1] Global business travel market size 2028 | Statista

[2] How to find the best deal on your next flight (blog.google)

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