New Data Reveals 41% Boom in Retail Sector for Business Travel

Business travel bookings in the retail sector rose 41% YoY Jan-Sept 2024.
February is the top month for travel in the sector
Top three international destinations are New Zealand, China, Hong Kong

Despite sluggish growth in Australian retail trade, consumer sentiment is growing – along with significant growth in travel in the retail industry. An analysis by Stage and Screen, a boutique travel management subsidiary of Flight Centre Travel Group specialising the creative, retail, sports and entertainment industries, has revealed a 41 per cent increase year on year in flight bookings in the retail sector – suggesting the industry been working hard to plan for growth, connect with employees and network with suppliers and customers.

The Stage and Screen analysis is based on Flight Centre Travel Group (FCTG) retail sector flight bookings from January-September 2023 to January-September 2024.

While Australian retail turnover rose just 0.7 per cent in August and 0.1 per cent in September[1], the latest Westpac Consumer Sentiment report found that consumer sentiment is the highest it’s been since 2022, at 94.6.[2]

The growth in travel points to the sector’s significant and growing physical footprint across Australia. The retail sector is made up of around 155,000 businesses across Australia – an increase of over 20,000 since 2017, despite the growth in online shopping.[3] A recent report found that 39 per cent of retailers who operate physical stores plan to increase the number of stores in the coming year.[4]

The retail sector is also the second-largest employing industry, with 9.3 per cent of the country’s employees,[5] and with a growth of 6,000 employees (or 0.5%) from in the 12 months to August 2024. The sheer physical scale of the industry points to a requirement among its businesses to conduct more face-to-face meetings and events than other industries, to remain competitive.

The Stage and Screen analysis also revealed that retail trips this year averaged five days, suggesting that businesses strategically organise their travel to maximise their return on investment.

Adam Moon, General Manager of Stage and Screen, says: “With consumer confidence on the rise, it’s crucial for retailers to stay ahead of emerging trends. Attending buying trips and trade shows is essential for staying at the forefront of industry product developments and anticipating future trends.

“Additionally, in-person meetings and connections are important in the retail industry, regardless of economic conditions or their sales performance. Retailers know they need to be on the ground at their stores – whether it’s for store walkthroughs, merchandising refreshes, training teams and customer events – while also representing their brand at key trade shows and building relationships with suppliers. There are multiple boxes retailers often have to tick when travelling.”

The Stage and Screen analysis also reveals retailers travelled most in February this year – when the peak of consumer sales starts to normalise – followed by high flight booking volumes in March and May (tied), then August and July.

Sydney is the most popular travel destination in the sector, followed by Melbourne, Brisbane, Perth, Adelaide and Canberra, which are central hubs for retail industry activity and networking.

Meanwhile, overseas trips by this industry are ticking the box for supplier locations and markets of strategic importance. New Zealand has been the top destination this year, followed by China, Hong Kong, and then the United Kingdom, Singapore, the United States and Thailand.

Adam says: “Retailers are also saying yes to taking part in more trade shows and conferences, locally and overseas, with a recent survey showing this was the reason for 54 per cent of Australian and New Zealand business travel.”

Adam adds retailers are actively pursuing international opportunities and that’s where networking comes in.

“Taking part in international events, visiting overseas suppliers, and scoping for new markets makes sense for retailers keen to stay competitive and responsive to new trends. So, while it may look like the retail sector has been sluggish during the current cost-of-living crisis, there’s a lot going on behind the scenes that’s bolstering that travel momentum,” Adam says.

Stage and Screen continues to support the retail sector with tailored travel solutions that streamline business journeys, enabling clients to focus on their growth and strategic goals.

ENDS

About Stage and Screen

Stage and Screen is a leading provider of specialist travel management solutions for the sports, entertainment and creative industries. Founded in 1995 and acquired by Flight Centre Travel Group in 1999, Stage and Screen offers bespoke travel services, group travel packages, and artist management solutions to clients worldwide. Stage and Screen is dedicated to delivering exceptional service and personalised support to meet the unique needs of each client. It has offices in Sydney, Melbourne, Brisbane, Auckland, Los Angeles, New York, Toronto, Vancouver and Cape Town. In 2023, Stage and Screen was certified as a Great Place to Work and was honoured with the Most Outstanding National Travel Management Company award at the Australian Travel Industry Association’s National Travel Industry Awards 2023.

[1] https://www.abs.gov.au/media-centre/media-releases/retail-spending-steady-september#:~:text=Australian%20retail%20turnover%20rose%200.1,flat%20result%20in%20July%202024.

[2] https://melbourneinstitute.unimelb.edu.au/publications/macroeconomic-reports/latest-news/index-of-consumer-sentiment

[3] https://www.statista.com/statistics/1295494/australia-retail-trade-businesses/#:~:text=Number%20of%20operating%20retail%20trade%20businesses%20Australia%20FY%202017%2D2023&text=At%20the%20end%20of%20financial,across%20the%20country%20since%202017.

[4] https://assets.kpmg.com/content/dam/kpmg/au/pdf/2023/australian-retail-outlook-2023.pdf

[5] https://www.jobsandskills.gov.au/data/occupation-and-industry-profiles/industries/retail-trade