Timely Forum Tackles Travel’s Toughest Questions

The GBTA Australia Business Travel Forum series kicked off at Sofitel Brisbane Central with a high-impact session that explored pressing global and local corporate travel issues.

Economic Uncertainty Clouds Global Outlook

Alexander Mees, senior analyst at Morgans, delivered a sobering view of the global economy, calling the Trump administration’s new tariffs “the most consequential event since COVID.” He detailed how these moves have shaken the U.S. economy — airline stocks have plunged 39%, inflation fears are rising, and shortages of key goods loom.

Mees warned that business travel, often the first casualty of economic uncertainty, is already taking a hit. Nearly 69% of U.S. Chief Procurement Officers predict a recession in the second half of 2025, and a third of companies are planning to reduce travel. Airlines are scaling back capacity and frequency in response.

Despite these challenges, Mees struck an optimistic note: “Travel always bounces back. We might even see an uptick in international travel as businesses seek to diversify.

“There will be short-term disruptions, but there’s no reason to believe we won’t get back on the horse,” he concluded.

Australian Market: Mixed Signals and Strategic Shifts

Paljor Lama, managing partner at Advito (BCD Travel’s consultancy arm), provided an in-depth snapshot of the Australian business travel market. He noted that while business class fares remain below pre-pandemic levels, economy fares are on the rise — particularly restricted economy.

Ticket prices to the U.S. and New Zealand increased in early 2025, while fares to the UK and Singapore dropped, the latter by as much as 30%. Modest price increases are expected through 2027.

Hotel pricing trends are stabilising in most regions, although Perth, Darwin, and Canberra continue to see accelerated rate growth.

To manage air costs, Lama recommended exploring new retail channels, focusing on total trip costs (not just base fares), and embedding sustainability into airline negotiations. For accommodation, he advocated using multi-source content to unlock up to 5% in extra savings and regularly reviewing dynamic pricing contracts to stay aligned with cost-saving goals.

Roundtables Spark Robust Debate

The forum’s roundtable sessions tackled industry flashpoints, starting with the New Distribution Capability (NDC) standard set to replace legacy EDIFACT systems. With Qantas switching to NDC on July 1, confusion reigns among buyers. While some foresee savings of up to 30%, others expressed concern over a lack of preparedness from both airlines and travel management companies.

Emma Graeme-Coutts from World Travel Protection highlighted rising travel risks, from evolving U.S. border policies to risky traveller behaviour. She urged organisations to clearly communicate travel policies and set expectations for off-duty conduct.

One travel manager noted that businesses have a duty of care to ensure travellers return “in an equal or better state than when they left.” Discussions also touched on complex new risk considerations such as gender identity and geopolitical restrictions.

Looking Ahead

This Brisbane event is just the start of GBTA/FACTS’s travel management series. Upcoming sessions include the FACTS Perth Procurement Roundtable on June 24 and the GBTA Melbourne Business Travel Forum on July 31.