Flight Centre Travel Group’s corporate brands FCM Travel and Corporate Traveller have notched another year of record transaction values and profit growth, powered by a sharp rise in premium travel bookings. Premium economy leads the charge, up nine per cent year-on-year, with business class close behind at five per cent.
“We’re seeing an uptick in the premium economy and business class cabins in particular, both domestically and internationally,” FCM Travel and Corporate Traveller global COO Melissa Elf said.
“Rising popularity at the front end of the plane reflects growth and stability across Australian businesses, and it echoes our recent findings that FCM Travel and Corporate Traveller customers are looking to spend more on travel in the year ahead,” Elf added.
Globally, 45 per cent of FCTG’s corporate customers intend to increase their travel spend in the current financial year versus the previous. In Australia, the intention to spend more jumps to 47 per cent of businesses surveyed.
Both in Australia and globally, 37 per cent of businesses were intending on spending the same amount on travel in FY26 as they did in FY25, with only seven per cent planning to spend less this financial year.
“Companies are aware that the cost of doing business is getting more expensive, so those focused on growth are committing budget to activity that deliver returns, and travel is one of those non-discretionary areas of spend that drives revenue,” Elf continued.
“On top of that, there’s a real flock to the front of the plane, and businesses are willing to pay for the more expensive cabin classes to get the greatest level of productivity and loyalty out of their travelling staff.”
Bookings in the economy cabin out of Australia remained relatively flat, and first-class bookings saw a drop.
“I think we’re seeing a slowdown in first class bookings due to the vast improvements that are on offer in the business cabin that rival first class, and the really incredible experience that carriers are providing for travellers of the business cabin,” Elf said.
“Airlines are certainly prioritising the premium traveller. Recently, we have seen carriers reconfigure aircraft layouts to not only expand the volume of premium economy and business class seating but also innovate the top cabin offering and set a point of difference as the aviation sector gets increasingly more competitive.
“First class will offer that next level of exclusivity and privacy, but it’s a big jump in price from business class and tends to mainly attract the ultra-high-net-worths and our extra VIP business owners, board members and high-level executives. While there will always be some appetite for first class, it’s not seeing bookings growth by any means.
“This growth in the business and premium economy cabins comes in a period of economic uncertainty, and it goes to show that despite many businesses feeling the pinch of the cost of doing business, travel continues to be a necessity for corporate success and survival.”
