Corporate Traveller, the SME-focused division of Flight Centre Travel Group, has reported a 35% year-on-year increase in premium economy bookings for March 2025, despite a 9% rise in average international return airfare.
This surge signals a shifting mindset among corporate travellers, with comfort and value now outweighing the pursuit of the lowest fares. The average cost of a premium economy return ticket departing Australia rose to $4,495, up from $4,115 in the same period last year. Yet, this moderate increase compares favorably with the sharper fare hikes seen in business and first-class cabins.
Tom Walley, Global Managing Director of Corporate Traveller, said the change reflects a broader reassessment of value in corporate travel.
“Lowest airfares are no longer the number one priority for business travellers,” Walley explained. “Many organisations are recalibrating value—balancing comfort, productivity, and employee wellbeing against price. Premium economy is increasingly seen as the sweet spot for long-haul travel.”
Positioned between standard economy and business class, premium economy offers a compelling blend of affordability and enhanced comfort. As travel budgets evolve post-pandemic and employee wellbeing becomes a greater focus, this cabin class continues to gain ground among cost-conscious but comfort-driven business travellers.
