7-minute read
New data identifies critical cost-saving strategies for Australian corporate travel programs
For Australian organisations looking to squeeze more business trips out of their travel budget, meaningful savings do not always require sweeping policy changes.
The recently released Australian Business Travel Digest FY26 from Travel Analytics drew insights from 227 Australian corporate travel programs to highlight where more precise decisions could improve cost control, compliance and program performance.
Here are our top 10 evidence-based cost saving opportunities for corporate travel programs heading into 2027.
1. Update air budgets using current market conditions
Domestic airfares rose sharply in the first half of FY26, peaking in the December before easing over the remainder of the financial year.
Businesses that set their travel budgets using December’s peak prices may now be allowing around 8% more than current market conditions require. Using the latest June-quarter data can support more accurate budgets and better-informed airline negotiations.
2. Be more selective when buying flexible fares
In the fourth quarter, a flexible domestic fare cost on average $146 more than a restricted fare. By comparison, the expected cost of changing a restricted ticket was only $39.
Across the travel programs analysed, businesses paid $5.7 million extra for flexible fares to protect against an estimated $1 million in change costs.
Flexible fares remain valuable when plans are likely to change, but buying them for every traveller or trip can add unnecessary cost.
3. Match flexibility to genuine traveller needs
Flexible fares made up 23% of domestic bookings during FY26. However, only 10% to 16% of restricted tickets were actually changed.
Businesses can review their booking data to identify which travellers, roles and types of trips are most likely to change. Flexible fares can then be used where they provide real value, rather than being applied as a standard rule across the entire travel program.
4. Focus on reducing last-minute bookings
Booking early can still deliver savings, but the cost difference between booking two and three weeks ahead has narrowed.
By the fourth quarter, fares booked 14 to 20 days before travel cost only 6% more than those booked at least 21 days ahead. The bigger cost risk came from bookings made within six days of departure.
Rather than applying a strict 21-day advance-booking rule to every trip, businesses may achieve greater savings by focusing on reducing genuinely late bookings.
5. Set cabin policy by region
Premium-cabin use differs significantly by destination. In the fourth quarter of FY26, premium economy or higher represented only 16% of trans-Tasman sectors, compared with 60% of European sectors and 64% of Middle East sectors.
One global cabin rule is unlikely to reflect how people travel across every market. Regional thresholds can provide more relevant control while balancing cost, traveller needs and journey length.
6. Review high-growth domestic corridors
Every tracked domestic corridor was more expensive at the end of FY26 than at the beginning, but increases varied considerably.
Adelaide to Perth economy fares rose 70%, reaching an average of $754 one way in the fourth quarter. Canberra to Melbourne and Canberra to Sydney both increased by more than 40%.
Corridor-level reporting can help businesses focus negotiations and traveller behaviour initiatives where price increases are having the greatest impact.
7. Bring more hotel bookings into the managed program
According to the research sample, only half of eligible domestic overnight trips included accommodation booked through the TMC.
This leakage limits visibility, weakens duty-of-care oversight and reduces the consolidated volume available for hotel negotiations. Improving hotel attachment should be a priority for programs seeking stronger rates and more complete reporting.
8. Investigate low-capture hotel markets
Hotel capture varied significantly by destination. Adelaide achieved 68%, while Brisbane captured only 43% of eligible overnight trips despite its higher travel volume.
Comparing booking behaviour by city can reveal where preferred hotels, rate availability, policy settings or traveller habits require attention.
9. Focus engagement on frequent travellers
Just under 9% of travellers took 10 or more trips during the year, yet this group generated 47% of all trips and 40% of air spend.
A frequent traveller spent an average of $25,103 on airfares annually, compared with $2,846 for an occasional traveller. Targeted engagement with this smaller group of frequent travellers may influence program performance more quickly than broad, company-wide adjustments.
10. Align service channels with trip complexity
81% of domestic bookings were completed online, while international travel showed the reverse pattern with approximately 80% booked through a travel consultant.
The data supports a channel strategy that directs short, simple domestic trips towards efficient online booking channels while retaining expert consultant support for more complex international itineraries.
Turn your travel data into measurable program value
The strongest corporate travel program savings come from understanding exactly where your budget is being spent, why booking behaviours differ and which policy changes will have the greatest impact.
CT Connections works with Australian businesses of all sizes to turn travel data into practical program improvements, from fare and policy analysis to supplier negotiations, compliance and traveller engagement. In fact, we’ve identified 150 cost saving strategies that deliver transformative results for our client’s travel programs.
To explore them all, contact CT Connections today and identify where your travel program could reduce unnecessary costs and deliver greater value.
Source: Australian Business Travel Digest FY26, Travel Analytics. Based on aggregated, anonymised benchmarking across 227 contributing corporate travel programs with annual air spend of at least AU$500,000.
Get a better return on your business travel budget.
Contact CT Connections today.
FAQs
What are the best ways to reduce corporate travel costs?
The FY26 Australian Business Travel Digest points to six priority areas: reviewing flexible fares, targeting very late bookings, updating budget benchmarks, regionalising cabin policy, improving hotel capture and engaging frequent travellers. CT Connections has identified 150 cost saving strategies which we apply to our clients’ travel programs to maximise savings and improve strategic outcomes from their travel budgets.
Are flexible airfares cost-effective for corporate travel programs?
Sometimes, but not in every situation. Across the programs analysed in the FY26 Australian Business Travel Digest, $5.7 million was spent on flexible-fare premiums to cover an estimated $1 million in restricted-ticket change costs. Businesses should assess flexibility by traveller and trip type.
Why is hotel booking compliance important?
When hotels are booked outside the managed travel program, businesses lose visibility and valuable negotiating power. In FY26, only 50% of eligible domestic overnight trips included a hotel booked through the TMC, presenting a big opportunity for cost-saving improvements.
