What's Happening?
Corporate travel has shown remarkable resilience and growth in 2025, outpacing leisure travel, particularly in Australia. According to Matt Masson, CEO of CT Partners, corporate travel has been more robust due to strong demand from Australian businesses and stable domestic airfares. While leisure travel faced volatility, especially in North America, corporate travel remained steady as business travelers continued to visit key regions like the US, Europe, and the Middle East. The demand for premium airfares has remained strong, with business class bookings being particularly robust. The sector is also experiencing significant technological advancements, with private equity investments and technology-led disruptions reshaping the landscape. The introduction
of airline New Distribution Capability (NDC) has forced corporate agents to adopt new booking technologies, enhancing efficiency and competitiveness.
Why It's Important?
The growth in corporate travel highlights a shift in the travel industry, where business travel is becoming a more significant revenue stream compared to leisure travel. This trend is crucial for airlines and travel agencies as it provides a stable and resilient market segment less affected by geopolitical disruptions. The technological advancements in the sector, such as AI and automation, are enabling travel agencies to operate more efficiently, reducing manual processes and focusing on high-value tasks. This shift is attracting investments from tech companies and private equity, aiming to capitalize on the high-efficiency, high-volume nature of corporate travel. The continued growth and consolidation in the corporate travel sector suggest a robust future, with potential for further technological integration and efficiency improvements.
What's Next?
Looking ahead to 2026, corporate travel is expected to continue evolving with a focus on productivity, technology, and sustainability. There is a predicted increase in demand for premium economy and business class travel as companies prioritize employee wellbeing and productivity. AI is anticipated to play a more significant role, managing travel bookings and disruptions proactively. The accommodation sector may face challenges with rising hotel rates in high-demand areas, prompting companies to explore alternative accommodation strategies. Additionally, the rollout of the National Innovation Visa is expected to increase business travel between Australian innovation hubs and global tech centers, creating new opportunities for airlines and hotels to cater to high-value travelers.
