Demand surges for global business travel with Canada, UK and US most popular
After two years of virtual meetings, international business travel has roared back to pre-pandemic levels even without key markets like China and Japan.
After two years of virtual meetings, international business travel has roared back to pre-pandemic levels even without key markets like China and Japan.
Flight Centre’s Corporate Traveller business recorded its biggest month of international bookings in April with demand up 135 per cent on November 2021, when borders reopened after the Covid-19 pandemic.
Canada commanded the lion’s share of bookings followed by the UK and US, with the Middle East fourth and Singapore fifth.
Corporate Traveller global managing director Tom Walley said the demand for Canada reflected the significant amount of shared business with Australia, as well as a shortage of direct flights into the US.
“There’s a bit more availability of flights through places like Vancouver to get to cities in the US,” said Mr Walley from Boston.
“The amount of capacity on the LA route is less than it was pre-pandemic because Virgin isn’t flying there anymore, American Airlines has paused services to Australia and Qantas is using smaller Boeing 787s as opposed to A380s.”
He said the lack of capacity on all routes out of Australia was pushing up airfares, particularly on US routes.
Despite business class fares climbing into five figures there was no evidence that was dampening demand.
“Our customers are very determined to see their people and their customers irrespective of the cost,” said Mr Walley.
“It’s definitely a reflection of two-years of pent up demand. I’ve done three overseas trips since the start of the year to see our employees because that reconnection face-to-face is crucial.”
Leading the rush to do business offshore was the finance industry, followed by the medical and construction industries. Those employed in technology and mining also featured strongly in the revival of business travel.
Mr Walley said after a slow start when borders reopened, bookings took off mid-March and leapt again mid-April when the requirement for a Covid-19 test to return was relaxed.
“Each time I’ve gone overseas, it’s got easier with fewer requirements to worry about,” he said.
“The only thing I’m seeing now is there is still a lack of staff in the (travel) industry. They’re short-staffed in every country. I queued for an hour-and-a-quarter to get out of Sydney which I’ve never done before.”
Corporate Travel Management managing director Jamie Pherous said the lack of supply out of Australia was the only thing holding back strong growth in the sector.
He said clients were clamouring to get to events and conferences which were taking off again after two-years of crippling Covid-19 health restrictions.
“Australia and New Zealand are missing out. We could do much better if there was more supply,” Mr Pherous said.
“There is a shortage of flights and they’re expensive. In the US it’s pretty much business as usual, with pricing and frequency at 2019 levels.”
As well as more flights, Mr Pherous said he would like to see more automation in airline booking systems to take pressure off call centres.
“It’s hugely problematic to spend hours on a call trying to change a flight,” he said. “It’s not a good use of anyone’s resources and it will hurt those airlines that don’t have robust technology in place as capacity returns.”
A survey undertaken by Corporate Travel Management identified the three main reasons for travel which were largely unchanged on pre-pandemic times, Mr Pherous said.
“First, they want to see and retain customers, second, to streamline supply chains, and finally to bring people across their group or company together,” he said.
“It’s like everyone wants to catch up and meet again. There’s very much a mindset of ‘if you’re not travelling for business you’re missing out’.”
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