A practical wrap-up for Australian businesses and the people who keep their business travel programs moving.

2025 was a year of steady progress across corporate travel. Demand stayed healthy, suppliers adjusted to ongoing capacity shifts, and businesses focused on supporting travellers while running tighter, more efficient travel programs. Technology also matured – not as a replacement for people but as an enabler of better service and travel experiences.

As we head into 2026, one theme stands out: business travellers want smoother journeys, dependable support and tools that make managing business travel simpler. This wrap-up captures the key lessons from 2025 and what Australian businesses can expect in the year ahead, drawing on expert insights shared at the recent Festival of Aviation and Corporate Travel Summit (FACTS).

1. The Economic Backdrop

Steady Confidence for Australian Business Travel

Asia-Pacific enters 2026 with moderate, stable economic growth. Inflation is easing across developed markets, interest-rate adjustments are expected to lift confidence, and Australia remains one of the region’s strongest performers.Visa’s Spending Momentum Index shows Australia leading APAC in consumer spending growth, which is a positive signal for local businesses and the broader travel ecosystem.

What this means for business travel programs:

Stable conditions give businesses confidence to keep investing in client, partner and employee travel to drive growth and engagement.

2. Business Travel Spending

Growing, With a Sharper Eye on Value

Global business travel remains a US$1.6 trillion industry and is projected to reach US$2 trillion within three years. Spend has recovered strongly, underpinned by higher airfares and hotel rates, and a more constrained supply environment in some markets.

Businesses are travelling for:

  • Specific client meetings
  • Deal-critical moments
  • Product launches
  • High-value events

Across 2025, three themes stood out:

a) Travel Programs Are Being Run More Efficiently

Businesses refined their travel policies, tightened certain travel allowances and looked for ways to stretch budgets without compromising what matters most – safe, productive travel for their teams.

b) Travellers Are Still Seeking Comfort

According to SAP Concur research, a remarkable 84% of business travellers used their own money to upgrade their travel experience – paying from their own pocket for extra legroom, premium seating or better accommodation.

For travel arrangers, it’s a reminder that the fundamentals matter: good schedules, reliable support, and options that fit the purpose of each trip.

c) CFOs Are Watching Costs Closely

Cost control remained a priority in 2025. The challenge for organisations in 2026 will be balancing responsible spending with the travel activity needed to support customer acquisition and retention goals while meeting traveller wellbeing and productivity objectives.

What this means for business travel programs:

When travel is clearly tied to outcomes, it becomes easier to justify, protect and optimise.

3. Air Capacity

Strong International Growth, Tighter Domestic Conditions

As highlighted by Global Business Travel Association, APAC now represents around half of global business travel spend.

Australia is now:

  • The 12th largest business travel market globally
  • The 5th largest in APAC
  • Expected to increase spend again in 2026

Global seat capacity now sits 9% above pre-pandemic levels, with strong recovery across the US, Europe and South America. Asia is rebuilding more gradually, largely due to China’s slower outbound return.

Australia’s capacity picture is mixed:

  • Around 400,000 seats have been added over five years, mostly internationally.
  • Domestic capacity remains below 2019 levels, keeping local airfares elevated and availability narrow on key east-coast routes.
What this means for business travel programs:

For cost-conscious businesses, this makes early booking, transparent fare comparison and proactive trip planning more important than ever.

4. CFOs Are Backing Travel, With Conditions

One of the strongest signals from 2025 came from finance leaders. Research from SAP Concur shows:

  • 90% of CFOs expect travel budgets to increase
  • 45% believe not travelling is a serious business risk
  • Travel is now assessed on value delivered, not just cost

Rather than big policy changes and reduced travel activity, organisations are making lots of small cuts across the travel budget, including:

  • Lower hotel caps
  • Tighter fare rules
  • Fewer add-ons

90% of travellers report feeling these micro-cuts, and many are choosing to pay personally for comfort when it matters.

What this means for business travel programs:

Travel is seen as essential to business growth, relationships and competitiveness. Clear communication and thoughtful policy design are critical to avoid fatigue and disengagement.

5. Traveller Expectations

More Support, More Clarity, More Human Connection

Travel can be demanding, especially for frequent business travellers. In 2025, business travellers consistently asked for:

  • Clearer communication
  • Better wellbeing support
  • More predictable, consistent experiences
  • Reliable help when plans change

The travel industry is continuing to invest in more responsive service models, proactive disruption management and more intuitive technology that drives productivity, safety and personalisation.

What this means for business travel programs:

Businesses that prioritise the traveller experience will see the payoff in improved business and employee performance.

What This Means for Australian Businesses in 2026

As we head into 2026, the message from economists, industry leaders and CFOs is clear: business travel is not slowing down, it’s getting smarter.

For small and growing Australian businesses, the opportunity lies in:

  1. Aligning travel to clear business outcomes
  2. Planning earlier around pricing volatility
  3. Using data to guide decisions
  4. Partnering with experts who can help balance cost, care and compliance

Business travel remains one of the most powerful tools for business growth. And in a world where competition is global and relationships matter, staying connected counts more than ever.

Make your travel program work harder for your team.

Now is the time to review your travel program for the year ahead. Contact Spencer Corporate Travel today to explore how our solutions can drive better outcomes for your business and team.