New analysis from Hospitality & Horizons published on 14 October reveals that Australian corporates have tightened pre-trip approvals amid double-digit airfare and hotel-rate inflation. Travel managers interviewed say every journey now requires a formal ROI justification and risk assessment, a shift from the ‘budget-bucket’ approach common pre-COVID. While overall demand is holding up—particularly in energy and mining—policy tweaks include stricter cabin-class thresholds and a push toward virtual alternatives for routine internal meetings. Suppliers are responding with bundled offers: airlines are targeting SMEs with flex-fare discounts, and hotels are renegotiating dynamic-pricing caps earlier in the contracting cycle. The report also notes that market-entry applications from low-cost carrier VietJet could intensify domestic competition later this year, potentially easing pressure on east-coast fares. Travel buyers are watching the ACCC’s response closely; approval could introduce sub-$100 one-way fares on secondary city pairs. For mobility professionals, the findings confirm the need to align travel policies with new cost norms while safeguarding the duty-of-care frameworks that became standard during the pandemic.
Source: Hospitality & Horizons
