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The infrastructure boom has sparked a 90 per cent increase in construction-related travel

The infrastructure boom has seen the number of construction-related travellers soar to new heights, according to Flight Centre.

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The Australian Business Network

Construction-related travel grew almost 90 per cent in 2023 driven by major transport, renewable energy, and water infrastructure projects.

According to Flight Centre’s corporate divisions, FCM Travel and Corporate Traveller, demand for workers in the multibillion-dollar infrastructure sector boomed at the same time residential building activity fell.

And Brisbane Airport had the most construction-related travel activity, well ahead of Melbourne and Sydney.

Flight Centre Corporate managing director for Corporate Australia and New Zealand Melissa Elf said the construction sector’s air traffic performance was defying the negative headlines.

“We know house builders are facing trying times, but infrastructure construction is moving at a faster rate than we’ve seen in a long time, particularly as the infrastructure focus shifts to renewable energy projects,” Ms Elf said.

“Travel is clearly a critical facet for construction companies, particularly those in the infrastructure space, even more so with so many contracts still up for grabs across the country that require feet on the ground. You’re not going to win business from behind a desk.

“You just have to look at the pipeline of work to see that there will be no slowing of activity for the next five to 10 years and beyond.”

According to Flight Centre’s corporate divisions, FCM Travel and Corporate Traveller, demand for workers in the multibillion-dollar infrastructure sector has boomed.
According to Flight Centre’s corporate divisions, FCM Travel and Corporate Traveller, demand for workers in the multibillion-dollar infrastructure sector has boomed.

Data from the Australian Bureau of Statistics data showed that while residential building commencements fell in the September 2023 quarter, Engineering Construction Activity data – which encompasses infrastructure activity – rose in both the work completed (2.6 per cent) and value of work commenced (1.7 per cent), to a total of $30.34bn in the same quarter.

Ms Elf said Infrastructure Australia has reported the energy infrastructure project investment is forecast to increase fourfold over the next four years.

“The value of construction work is a key indicator of the health of economies and based on what we’re seeing as an ongoing growth trend of travel in the industry, it’s a really positive sign,” she said.

According to Flight Centre construction-related travel grew 89 per cent in 2023 compared to 2022 driven by infrastructure demand. The research also found that 17 per cent of all construction-related travel was departing from Brisbane.

“More than one in every six construction travellers are leaving from Brisbane, this is more than the rates coming out of either Sydney and Melbourne, which typically take the largest share of corporate travel in other sectors,” Ms Elf said.

“This tells us a couple of things. Firstly, there is plenty of construction and infrastructure activity happening across Queensland, but also, we’d expect it to reflect a lot of contracts being won by Queensland-based companies that are moving around the country servicing these major projects.”

Ms Elf said the Flight Centre data showed companies were booking more travellers for every trip than they had in the previous year.

“In 2022, we were seeing construction companies booking an average of two or three staff members per trip. In 2023, that number was closer to four people per trip,” she said.

“It speaks to this increase in large infrastructure projects, that quite simply, need more people on the ground – be it consultants, engineers, subcontractors, or designers.”

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Chris Herde
Chris HerdeBusiness reporter

Chris Herde is the editor of The Courier-Mail's commercial property Primesite and is part of The Australian Business Network covering a range of stories.

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Original URL: https://www.theaustralian.com.au/business/aviation/the-infrastructure-boom-has-sparked-a-90-per-cent-increase-in-constructionrelated-travel/news-story/d39f5a4d8afc532ef77fbdf76dcae971