New data reveals Australia’s regional corporate travel growth

• Regional travel grew 13% year-on-year for the September quarter
• Top outbound regional destinations include Mackay, Cairns, Townsville, and the Gold Coast

Regional travel is the fastest-growing segment in business travel, even amid challenges in the aviation sector, new data has revealed. Despite the collapse of Bonza in May and Virgin picking up an estimated 127,000 Rex tickets when the airline went into voluntary administration in July,[1] Corporate Traveller, the flagship SME division of Flight Centre Travel Group (FCTG), reported a 13 per cent year-on-year increase in business travel to regional areas for the September quarter.

Economic drivers in regional Australia

The findings underscore the crucial role of regional Australia, which has been the focus of Federal Government investment and is home to key industries such as renewable energy, agriculture, tourism, and mining.[2] Regional Australia produces most of the country’s fresh food, two-thirds of national exports, and accounts for 50 per cent of tourism revenue.[3] There are over 100,000 tourism-related businesses across the regions, while agriculture, fisheries, and forestry production have seen record highs in recent years.

Across Australian industry, the mining sector experienced significant growth, with earnings jumping 23 per cent, or $52 billion, in 2022-23, driven by coal mining, oil, and gas. The clean energy sector is also witnessing record growth, with $4.9 billion in new large-scale storage investments in 2023. Its workforce is expected to increase by 30 per cent, or 213,000 workers, by 2033, with growth likely to be strongest in regional Australia.[4]

Regional Australia’s combined population is on a steady upward trajectory, with 1.4 per cent (117,000 people) growth in 2022-23. Queensland led the growth at 2.2 per cent, followed by Western Australia (1.4 per cent).[5]

Challenges and future outlook

Despite capacity constraints on regional flights and challenges in the aviation sector following Bonza’s liquidation and Rex’s uncertain future, the demand for regional travel remains robust. Industry watchdogs have expressed concerns over potential hikes in regional airfares due to reduced competition.[6]

Looking ahead, the Federal Government threw Rex an $80 million lifeline to keep its regional routes running during the voluntary administration process, which has been extended until June 2025 while administrators source a buyer.[7]

Top regional destinations fueling growth

The top regional destinations for business travelers during July to September 2024 were:
Australia-wide: Mackay, Cairns, Townsville, Gold Coast, Kalgoorlie, Rockhampton, Newcastle
From Sydney: Gold Coast, Sunshine Coast, Cairns, Dubbo, Ballina, Wagga Wagga
From Melbourne: Gold Coast, Launceston, Newcastle, Cairns, Mildura, Sunshine Coast
From Brisbane: Mackay, Rockhampton, Townsville, Cairns, Emerald, Moranbah, Gladstone
From Perth: Kalgoorlie, Karratha, Port Hedland, Newman, Broome, Paraburdoo, Geraldton
From Adelaide: Alice Springs, Gold Coast, Port Lincoln, Mount Gambier, Broken Hill, Whyalla
From Hobart: Gold Coast, Cairns, Launceston, Darwin, Townsville, Wagga Wagga, Newcastle
From Darwin: Alice Springs, Cairns, Gove, Tennant Creek, Kununurra, Townsville, Broome
From Canberra: Gold Coast, Newcastle, Darwin, Cairns, Coffs Harbour, Alice Springs, Mackay

ENDS

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