INSIGHTS
What’s the outlook for corporate travel in Australia and New Zealand?
With 2026 just around the corner, Felicity Burke, Head of FCM Consulting APAC, took a look at the corporate travel landscape in Australia and New Zealand. Breaking down the aviation and accommodation sectors to reveal the biggest influences and trends impacting corporate travel, and the strategies you can use to balance costs, minimise price volatility, and snag the best rates.
The ups and downs of domestic air travel
Airline insights
Domestic air traffic in Australia and New Zealand continues to grow at a slow pace, with airlines taking a far more deliberate approach to how they generate growth. “Carriers are focusing on maximising margins through high passenger loads and by prioritising their most lucrative routes,” says Felicity Burke. “A yield-focused approach that will inevitably, for better or worse, shape corporate travel budgets.”
Year to May 2025, average domestic fares in New Zealand rose $7, while in Australia they fell by $13. On paper that seems like good news for Australia, but the reality for corporates is different. Key Australian business routes saw an average ticket price climb of 4%, indicating that corporate-heavy corridors are where airlines see the greatest opportunity to subtly lift revenue. A similar story is playing out in New Zealand. Where key city routes saw an average purchased fare increase of 18%. With limited carrier competition in both countries, these rises are hard to avoid. Similarly, regional travel routes in Australia are traditionally expensive and unserved, leaving few competitive options.
FCM Consulting don’t expect broad-based domestic advertised fares to drop in Australia during 2026. New Zealand faces the same outlook with advertised domestic fares remaining high. The greatest potential for savings will come from controlled traveller and booker behaviour, particularly early planning. With corporate travellers averaging 4-6 domestic trips a year, booking discipline could mean the difference between approving a trip or cancelling it to stay within program budget.
Strong accommodation demand meets rising costs
Accommodation insights
While the air market is about yield management, the accommodation market will continue to be impacted by occupancy demand and cost pressure in 2026. GBTA’s recent 2025 report shows that Asia Pacific has some of the largest lodging and food & beverage spend in the world, with Australasia sitting right at the top of that range.
Across Australia and New Zealand demand for hotels in capital cities and regional centres remains strong. Driven by corporate travel, business events, leisure tourism recovery, ongoing infrastructure projects, and rising operational costs due to regional inflation. These factors are unlikely to ease anytime soon, so average room rates are projected to increase 2-4% in 2026. That's on top of the spikes that already hit during peak periods.
Accommodation saving tips
To try stay clear of rate rises, Felicity suggests businesses:
The case for proactive program control
High airline passenger load factors, fare increases, and pricey accommodation leave little room for complacency in 2026 travel programs. Australia and New Zealand’s corporate travel market is expected to continue to grow. While this is positive for the industry, in markets where airlines and hotels are successfully optimising profit, unmanaged programs will pay more for the same travel volume.
For corporates, 2026 will be about broadening supplier reach and focusing on influential program management. Discover Felicity's recommended actions and the complete Asia Pacific outlook in the latest FCM Consulting Insights Report.