Australian corporate travel programs faced sharp cost movements during FY26. However, rising fares were only part of the story. We explore the key trends and savings opportunities identified.
The new Australian Business Travel Digest FY26, prepared by Travel Analytics and FACTS, reveals where corporate travel budgets came under pressure last year, where costs have begun to ease and where established travel policies may be adding unnecessary expense.
Based on anonymised data from 227 Australian corporate travel programs, each with at least $500,000 in annual air spend, the report provides a valuable benchmark for travel buyers, procurement leaders, aviation professionals and accommodation providers.
The key takeaway:
Managing travel costs effectively requires a precise understanding of when people book, what fares they choose, how they book accommodation and which travellers drive the greatest share of travel program activity.
Below, we explore the 6 key trends that emerged from the FY26 digest.
1. Air costs rose sharply, then began to ease
Domestic air costs increased significantly during FY26, peaking in the December quarter before falling again during the second half of the financial year.
On a like-for-like basis across tracked domestic corridors, the cost per kilometre finished the year 28% higher than where it began. While this remains a considerable increase, it was well below the peak recorded during the December quarter.
Why this matters: FY27 budgets, forecasts and supplier negotiations based on December-quarter pricing may now overstate current market conditions. Businesses should review more recent data rather than assuming the highest point of FY26 represents the new norm.
Cost movements also varied considerably by route. Transcontinental corridors recorded some of the largest increases, while movements across the high-volume east coast triangle were more moderate. Short routes with limited competitive pressure also emerged as areas requiring closer attention.
Why this matters: Route-level fare analysis is essential when setting travel budgets, negotiating supplier agreements and identifying practical savings opportunities.
2. The value of booking early is changing
Booking in advance still matters, however the report shows that the financial penalty for booking late narrowed significantly throughout FY26.
In the September quarter, booking a domestic economy ticket within 48 hours of departure cost three times as much as booking at least three weeks ahead. By the June quarter, the premium had fallen to 63%.
The difference between booking 14 to 20 days ahead and booking more than 21 days ahead also became much smaller.
Why this matters: This does not mean businesses should abandon advance-purchase policies. But it does suggest that some programs may be investing too much effort in moving travellers from two weeks’ notice to three weeks’ notice, when the larger opportunity sits with bookings made less than one week before departure.
Rather than applying the same advance purchase target to every booking, buyers may achieve better results by identifying the teams, travellers and trip types responsible for the shortest lead times.
3. Flexible airfare cost-benefit scrutiny
One of the clearest potential savings opportunities identified in the report relates to flexible domestic fares.
Across the programs, flexible tickets carried a combined premium of $5.7 million. The estimated cost of changing the equivalent restricted tickets was approximately $1 million.
Why this matters: The participating travel programs paid significantly more for flexibility than the expected cost of managing changes when they occurred.
Flexible fares remain valuable in the right circumstances; travellers with frequently changing schedules may genuinely need them. However, a targeted policy based on traveller behaviour, trip purpose and historical change rates could protect operational flexibility while reducing unnecessary fare premiums.
4. One cabin policy may not fit every region
International cabin use varied dramatically by destination during FY26.
Premium economy and business class accounted for a relatively small share of trans-Tasman travel, but a much larger proportion of trips to Europe and the Middle East. Premium travel also increased across some long-haul markets as the year progressed.
Why this matters: These differences challenge the value of a single global cabin policy. A policy based only on flight duration may be too generous for some markets and too restrictive for others. Regional cabin policy guidelines can provide greater cost control while recognising traveller wellbeing, productivity, operational requirements and trip purpose.
Cabin choice also has a direct impact on carbon emissions. According to the report, a long-haul international business-class seat generated substantially more carbon per sector than an economy seat on the same journey.
For organisations with cost and sustainability targets, long-haul cabin policy is therefore an important area for review.
5. Half of eligible hotel bookings remain outside the travel program
The report found that only half of eligible overnight domestic trips included accommodation booked through the travel management company. Hotel capture rates also varied considerably between Australian cities.
Why this matters: When travellers book hotels outside the approved travel program, businesses lose visibility over total travel spend, traveller location and risk management, and negotiated rate performance. Leakage also weakens the consolidated volume used to negotiate future hotel agreements.
Understanding why leakage occurs is the first step towards improving hotel capture without creating unnecessary traveller friction.
6. A small group of business travellers drive a disproportionate share of travel activity
The report found that corporate travel activity is highly concentrated. Fewer than 9% of participating travellers took ten or more trips during FY26, yet this group accounted for 47% of all trips and 40% of both air spend and travel-related carbon emissions.
This data creates a strong case for targeted traveller feedback and engagement to drive travel program improvements.
Why this matters: Engagement with frequent travellers is likely to influence travel program performance. These employees can provide valuable feedback on booking tools, fare rules, preferred suppliers, service issues and policy settings. They also represent the group most affected by travel friction, fatigue and complex itineraries.
Transform your FY26 travel data into a better travel program
The findings of the Australian Business Travel Digest FY26 show that Australian travel programs have several practical opportunities to improve performance:
- Reassess budgets using the latest market data.
- Focus advance-purchase efforts on last-minute bookings.
- Limit flexible fares to travellers and trips that genuinely require them.
- Review cabin policy by region.
- Investigate reasons for hotel leakage and improve accommodation capture.
- Engage directly with frequent travellers who drive a disproportionate share of activity.
