WEDNESDAY 10 JULY 2023 - MELBOURNE / AUSTRALIA - Corporate Australia is showing no signs of the economy grounding their teams as travel expenses spiked by $6.9bn in the past year, according to new data from payments platform Airwallex.
Overall, spending on business expenses has increased 9 per cent ($12.7bn) in the past year, exceeding $152.8bn in the period January - May 2023.
Businesses are on average spending an extra $54,816 on travel - or a 71 per cent increase - compared to this time last year.
The expenses data from Airwallex, which tracks spending across the economy, reveals a surge in business expenditure on travel, even in the face of an uncertain economic environment and the rise of remote work.
Key findings from the data, which captured spending from January-May across 2022 and 2023, include:
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The biggest increase in corporate travel spending was with international travel agencies, which jumped by 278 per cent ($2.3bn).
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Business spending on domestic flights and hotels has increased by 89 per cent ($1.9bn) and 60 per cent ($770m) respectively.
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Spending on international hotels and airlines has also increased by 57 per cent ($930m) and 19 per cent ($263m) respectively.
“What we see from how Aussie businesses are using our Expenses cards is they value in-person interactions and are willing to invest in travel,” said Airwallex Director of Sales Lachlan Millist.
“Even with well-established and cheaper virtual options, our data shows businesses believe face-to-face time is irreplaceable when it comes to relationship-building, networking and sourcing new commercial opportunities.”
“Increasing demand for travel will bring opportunities for the sector to reinvest and re-emerge from the pandemic, stronger than before.
“Businesses are looking for value in their travel expenses though.
“Rising inflation and supply chain issues mean the costs of big ticket travel items like flights and accommodation, are likely to increase. Somewhere businesses can be more savvy and reduce costs is to shop around for their expenses partner to process these transactions.
“Partnering with the right fintech platform, such as Airwallex, will help businesses minimise their overall spend in travel, through accessing competitive foreign exchange rates, transparent and low fees and real-time access to expenses.”
Case study
Airlines and hotels aren’t the only parts of the tourism industry benefiting from the increased appetite for travel, with Australian luggage retailer July's growth signaling the strength of the travel resurgence.
The luggage retailer has experienced explosive growth in the past two years, including a 640 per cent revenue increase since 2021 and spending some months at a 1,000 per cent year-on-year growth benchmark.
“Sales have increased at staggering numbers across our full range of luggage products, suggesting Australians are embracing all types of travel opportunities. In the last year, we’ve grown the team by 80 per cent to meet demand,” said Richard Li, Co-Founder and CEO, July.
“We knew Australians were eager to book holidays overseas post-pandemic, and this data from Airwallex shows travel for business, just not leisure, is also on the rise.
“This news is really positive for all businesses in the travel and tourism space, which was amongst the hardest hit during the pandemic.”
July has recently expanded its online global reach to include the UK, as well as Australia, New Zealand and the US.
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About us:
About Airwallex
Airwallex is a global payments and financial platform for modern businesses. We remove the unnecessary friction and cost inherent in the traditional financial system to help entrepreneurs achieve their global ambitions. Leading companies around the world trust Airwallex to manage everything from payments, treasury, and spend to embedded finance - all in one single platform.
Our purpose is to connect entrepreneurs, business builders, makers and creators with opportunities in every corner of the world. With an international footprint across the Asia-Pacific, Europe and North America, we empower businesses to grow without borders.
For more information, please visit www.airwallex.com
Contact details:
Notes to media
If you have any questions or would like to request further information, please contact airwallex@iconagency.com.au.
Interview opportunities
Lachlan Millist, Director of Sales ANZ at Airwallex, is available for interview on request, pending availability.
