Thursday, July 25, 2024
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Corporate travel hits full throttle for 2024, despite economic uncertainty

Corporate travel is back for 2024 and after a bumper 2023, there’s optimism Kiwis will continue to take their businesses to new heights – trading and building on stakeholder relationships both across New Zealand and internationally.

Despite ongoing economic uncertainties, business travel has been booming, with Flight Centre Travel Group’s corporate brands, Corporate Traveller and FCM reporting international business travel was up 66 percent year-on-year for 2023.

The rise in bookings was led by the construction and manufacturing industry, with the construction industry accounting for 18 percent of overall bookings and manufacturing for 10 per cent.

Corporate Traveller New Zealand general manager Angie Forsyth says this data could be surprising to some as both industries reported downturns last year.

“According to Statistics NZ, 25 per cent less dwellings were consented in 2023, while the BNZ-Business New Zealand Performance of Manufacturing Index reports that manufacturing has also been in a prolonged period of contraction.

“The conflicting data makes it clear that travel remains a priority for Kiwi businesses and is essential for ongoing operations.”

Angie says the team at Corporate Traveller are aware budgets will likely be tight for 2024 as the economy remains stagnant.

“We know plenty of businesses are being tasked with tightening their belts, but the good news is we’re expecting more airline capacity and as a result, more competitive airfares which will go a long way when it comes to travel cost-cutting.”

According to FCM’s latest Quarterly Global Trends Report, H1-2024 is forecast to eclipse the plane seat numbers offered in H1-2019 with nearly 100 million more seats available globally. This is largely a result of fleet configuration changes and shifts in schedules to meet demand.

Angie adds that working alongside a travel management company can also help you optimise your travel budget.

“A corporate travel management company will be able to help you save money, but also
ensure you’re getting the most ‘bang for your buck’ by ultilising strong supplier relationships to stretch your budget further.

“Additionally, they will be able to provide high-level cost analysis with ongoing reporting to
stay on top of your spend.

“Business travel is essential for economic growth, cultural exchange and collaboration across various sectors. We hope strong corporate travel demand will also be reflected in overall economic prosperity for 2024.”

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