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Six must-read travel forecasts for 2023


Find out when travel costs will decrease and the major change ahead for passports.

No one could have predicted the effect the COVID pandemic would have on the world over the past few years.

 

But as we start to put those dark days behind us and travel becomes more and more accessible, experts are starting to look ahead to a brighter future.

 

Tom Walley is the Global MD at Corporate Traveller, Flight Centre’s SME travel management division. He’s come up with six forecasts for the Australian market in 2023 and beyond.

 

Domestic travel costs will decrease while international costs will remain high until Chinese carriers return

 

Domestic travel costs in the U.S. have started to plateau and fall, and Tom expects the same to occur in Australia next year. Rex Airlines has been helping by providing more Golden Triangle flights, increasing domestic competition.

 

More significant, however, is an anticipated fall in international travel costs. Tom predicts Chinese carriers will return in the first half of 2023, bringing competition back to the market and flight capacity back to circa 90 per cent of pre-COVID levels by mid-2023.

 

As a result, the cost of Australia-Europe and Asia routes will decrease, while Australia-U.S. routes will be slower to fall. Tom expects more hotel and car rental capacity to increase early next year.

 

Middle management will return to the skies 

 

Through 2020 and 2021, business directors and essential workers have been doing most of the travelling, as businesses travelled only for essential reasons. Tom expects middle management to make a strong travel comeback next year. 

 

Businesses will book travel further in advance amid easing infection and restriction fears

 

Tom says Australian businesses will no longer regard COVID as a top travel concern. Fears of infection risks and Government restrictions will continue to drop. As a result, Tom says more businesses will book their travel well in advance.

 

“We are beginning to see businesses booking travel 40 days in advance at Corporate Traveller – from 30 days during the height of the pandemic – as a result of improved confidence and a way to reduce travel costs,” he said.

 

‘Work from anywhere’ policies will increase 

 

As the tight labour market continues, Tom predicts more companies will offer ‘work from anywhere’ policies to retain people. This will motivate more executives to take working holidays.

 

Travelling to meet and build rapport with other team members will be offered by businesses to improve employee relationships, morale and retention.

 

The travel journey will become more digitised

 

We will be hearing ‘digital ID’ more frequently in 2023 in the move to protect individual identities and to help create digital, seamless services – including travel.

 

Incoming passenger declaration cards have moved online this year and Tom forecasts passports will be next in line to becoming digitised.

 

Travel providers will tap into the gig economy

 

Tom expects more travel providers to draw on the gig economy for selected services. For instance, hotels will replace in-house dining options through food delivery partnerships, such as UberEats.

 

Tom also expects partnerships with gig economy providers to expand to include additional perks, such as discounted or free delivery.

corporatetraveller.com.au

 


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Written by: Jon Underwood
Published: 13 December 2022

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