Challenger Advantage: How Virgin Australia is Redefining Corporate Travel

Virgin Australia is navigating the post-pandemic corporate travel landscape with a clear focus on value, choice, and experience, according to chief marketing officer Libby Minogue, who spoke in a fireside chat with Peter Harbison at the FACTS conference in Sydney. For business travel professionals in Australia, her insights underscore both the opportunities and the challenges in a market dominated by legacy carriers, cost-conscious corporates, and evolving customer expectations.

Minogue framed Virgin’s approach through the lens of its identity as a “challenger brand”, a position that continues to shape every aspect of its service and product offering. “Everything that we do comes through that lens of what does it mean for Australians?” she said, emphasising that innovation and responsiveness remain central to the airline’s strategy. For corporate travellers, this translates into products and services tailored to provide flexibility, reliability and a superior end-to-end experience.

Among the airline’s high-profile initiatives is the introduction of pet travel on select domestic routes, a move that may seem unconventional but reflects a broader commitment to understanding customer needs. Minogue highlighted that “over 70% of Australians have a pet” and that the programme, launched on Melbourne–Gold Coast and Melbourne–Sunshine Coast flights, has sold out for the Christmas period. “Guests absolutely love it,” she said, noting that the experience has been designed so as not to inconvenience other passengers. For corporate travel managers, this signals a growing expectation that airlines can offer differentiated, personalised services even on economy-class flights — whether that’s pets, flexible boarding, or tailored seating.

Price, while critical, is not the sole determinant of customer loyalty for Virgin. Minogue explained that, for small and medium enterprises (SMEs) and value-conscious corporate clients, Virgin sits “approximately 30% below our competitor”, giving businesses cost-effective options without compromising service quality. But she stressed that price is just one part of a broader customer value proposition encompassing service, choice, and experience. In practice, this means business travellers can expect flexibility in bookings, tiered loyalty benefits, and the ability to adapt travel plans without penalisation — critical in today’s dynamic corporate environment where meetings shift and schedules change frequently.

Product differentiation remains central to Virgin’s strategy. Minogue argued that Virgin’s domestic offering, including Economy X (its premium economy product), often outperforms competitors. “Product is made up of more than just the aircraft itself,” she said. This holistic view extends to the booking experience, baggage tracking, onboard food and beverage, and loyalty programs. For corporates, this means that the airline is investing not just in planes but in the operational and service frameworks that reduce friction and improve predictability—key factors for busy executives whose time is valuable.

Lounge experiences also reflect this integrated approach. Virgin has upgraded lounges in Melbourne, Adelaide, Sydney, Brisbane, Gold Coast and Perth, while Beyond lounges cater to high-value corporate and SME clients. Minogue emphasised that these facilities are part of a comprehensive end-to-end offering that enhances the corporate travel experience beyond the seat. In a market where Qantas has traditionally set the benchmark for domestic lounge quality, Virgin’s investments signal an intent to compete on service as well as price.

Strategic partnerships are another pillar of Virgin’s approach. Qatar Airways’ 25% investment in the airline has enabled the introduction of wet-leased aircraft offering world-class business and first-class products on domestic flights. “The connectivity has been very, very strong,” Minogue said, highlighting both international and domestic benefits, including opportunities for corporates to leverage loyalty programmes and access premium offerings that were previously out of reach. For corporate travel planners, these partnerships expand options for clients who need both domestic connectivity and international reward opportunities.

Minogue also touched on the adoption of technology, particularly artificial intelligence. Virgin has been deploying AI in revenue management, marketing, operations, and customer service for the past two years, and plans are under way to introduce agentic AI services to further enhance the customer experience.

(Shortly after the conference, Virgin announced a “landmark collaboration with OpenAI focused on creating new and convenient ways for customers to plan and shop for travel”. The deal paves the way to flight searches on ChatGPT using recently announced developer tools.)

She emphasised governance and human oversight, noting that AI supplements rather than replaces the human touch. For corporate travel managers, this suggests that airlines are increasingly using technology to improve reliability, responsiveness, and personalisation — elements critical to justifying travel spend in an era of economic pressure.

Turning specifically to corporate travel, Minogue reported that Virgin has experienced strong growth, particularly in Western Australia. “Corporate has been strong for us. We’re seeing a lot of movement in corporate,” she said. This contrasts with broader market commentary suggesting a global softening, highlighting that Virgin’s competitive pricing and product mix are resonating with cost-conscious Australian businesses. The airline’s loyalty program, Velocity, now includes new Platinum Plus and Forever Gold tiers, alongside frequent updates to partners, offering corporates flexibility in rewards, points redemption, and value-added benefits.

For business travel professionals in Australia, these insights point to several key takeaways. Firstly, the corporate travel market remains competitive but opportunity-rich for airlines that can combine affordability with service excellence. Secondly, differentiated offerings — whether through premium economy, loyalty programs, or niche services such as pet travel — are becoming critical in retaining and growing corporate customers. Thirdly, strategic partnerships and technology adoption are increasingly central to delivering seamless, flexible, and rewarding experiences that meet modern corporate expectations.

 As Minogue concluded, “We are very clear on who we are. We understand our customer segments. We understand what loyalty means to the …  and we’ll continue to do that over the coming years.” For Australian businesses, this clarity translates into choice, efficiency, and an experience that supports productivity and engagement — key metrics in the post-pandemic corporate travel world.