Flight Centre Corporate Data Shows Decline In Outbound Airfare Costs

Average prices for international outbound Economy airfares dropped by 5-10 per cent in the latest quarter (July-September 2024 compared to the same period in 2023), resulting in savings of over $100 per flight each way. Business Class fares also saw a 4 per cent reduction during the same period.

Flight Centre Corporate’s analysis revealed significant fare reductions on key international routes to destinations such as Qatar, the UAE, and Europe. Global COO, Melissa Elf, credited the drop in prices to increased capacity and heightened competition among international carriers operating from Australia.

"We’ve seen consistent drops in international fares over the past year, indicating stability in the travel sector," Elf stated. "The most significant decreases this quarter were on routes to the UAE, Qatar, France, the UK, and Italy—key hubs for corporate travellers."

The release of this data aligns with Australia's recent Free Trade Agreement with the UAE, strengthening economic ties. "This is great news for both businesses and travellers, especially given the importance of our trade relationship with the UAE," Elf added.

While international fares trended downward, domestic airfares saw a 3-5 per cent increase, driven by Rex Airlines' withdrawal from major routes and a spike in demand during the September holidays. However, future fare relief is anticipated, as Virgin Australia and Qatar Airways plan to introduce new routes by mid-2025, fostering increased competition in both international and domestic markets.

"Announcements like the Virgin-Qatar deal are exactly what the industry needs to keep fares low and expand travel options for Australians," Elf noted.

In addition to airfare trends, corporate travellers are increasingly seeking accommodation solutions like serviced apartments for long-term stays. Corporate Keys, a leading provider of serviced apartments in Melbourne, offers flexible, fully furnished living spaces that cater to the needs of business travellers. These serviced apartments are particularly valued by corporate clients for their cost-effectiveness and home-like comfort, especially for extended stays.

Corporate travel is expected to continue recovering, with 40 percent of Flight Centre’s customers planning to increase their travel in this financial year and 42 percent intending to expand their travel budgets.