Turbulence and tailwinds: Our new report reveals state of travel in Australia
Just take a look at the numbers.
According to the Australian Competition and Consumer Commission (ACCC), Qantas, Jetstar, Rex, and Virgin Australia collectively carried 4.9 million domestic passengers in early 2024 – a figure that trumped 2023 levels and was similar to 2019 levels. Airfares managed to remain below December 2023 levels, too.
A deep dive further into the data and the ‘why’ behind this growth revealed more than just pent-up demand, with a significant surge in business and leisure travel, and a few major international events such as the Paris Games boosting the numbers.
It all points to a robust return of travel to pre-pandemic levels, with additional projections forecasting international passenger movements will soar by 2.7 per cent year-on-year and domestic air passenger travel expected to grow by 2.6 per cent per annum.
The road to recovery for the Aussie aviation sector
As we mentioned, it hasn’t all been smooth sailing. The collapse of regional airline Bonza this year, after just 18 months of operations, was a blow. For Rex to enter administration and halt interstate routes just a few weeks later rubbed salt in the wound and indicated dark skies for smaller carriers in our domestic space.
Despite these setbacks, Virgin Australia has announced that Qatar Airways intends to acquire a 25 per cent stake in the airline, which could see Virgin launch flights to Doha from Australian capital cities from mid-2025.
Virgin Australia also increased its international market share through a strategic codeshare partnership with Air New Zealand that will transform the trans-Tasman travel landscape. In a nutshell, it helps Virgin Australia re-expand its NZ network while addressing gaps left by discontinued routes.
And speaking of New Zealand. Tourism is tipped to grow significantly between our two nations with Jetstar announcing plans in 2024 to unlock more than 240,000 new low-fare seats, including between Christchurch and Cairns and Auckland and the Sunshine Coast.
Across the international travel sphere a strong comeback is underway. The Australian Bureau of Statistics revealed 1.56 million departures were recorded in May 2024, with international arrivals also climbing by 14 per cent year on year. New Zealand, China and the USA continue to be Australia’s top inbound travel markets, with NSW receiving the lion’s share of these visitors.
Looking ahead, Adam says there will be significant movement between China and Australia following reports Australians would no longer require a visa for visits to China under 10 days and new direct flights between Shanghai and Melbourne.
Adam says:
“With China one of our largest inbound markets, the return of Chinese travellers is not only boosting tourism but also driving corporate travel. This recovery is a crucial step in revitalising Australia’s travel sector.
“In fact, the surge in international travel has fuelled an increase in both inbound and outbound business travel in general and this comes off the back of incredible corporate interest in major events.”
Sustainable travel: Green skies ahead
As the travel industry rebuilds, our report showed sustainability has become a focal point. This comes after Qantas pledged to reduce its environmental impact, announcing its Sustainable Aviation Fuel (SAF) target of 10 per cent by 2030, and 60 per cent by 2050.
Across the globe, SAF is gaining serious traction with our report revealing Singapore’s Changi Airport introduced a one per cent SAF levy on departing flights to fund greener travel initiatives.
As global companies ramp up their focus on reducing emissions, the rise of sustainable travel is set to change the way businesses book trips, Adam says.
“We’re seeing a greater push toward sustainable travel practices, and travel management companies need to help their clients meet carbon reduction goals without sacrificing efficiency,” he says.
So what lies ahead for Australia’s travel?
Passenger rates will grow, sustainable travel will spark a green pivot, particularly in the fuel space, and travel management companies will be at the forefront of this change to ensure that seamless travel experiences meet evolving corporate sustainability needs.
Explore the full 2024 Sports and Entertainment Travel Industry Insights Report for all the data, trends, and forecasts shaping that future.
