Jetstar Gains Ground As Australian Business Travellers Look For Better Value

Australia’s corporate travel landscape is evolving as businesses search for smarter ways to manage travel expenses without reducing essential face-to-face meetings. Jetstar, traditionally associated with leisure and budget travel, is increasingly attracting business travellers—particularly small and medium-sized enterprises (SMEs) looking for more economical alternatives to full-service airlines.

According to CT Partners CEO Matt Masson, Jetstar has increased its presence in the corporate travel market over the past two years. The trend has become more noticeable following Rex’s exit from the market, which has created additional opportunities for Jetstar to compete for cost-conscious corporate passengers. While Qantas and Virgin Australia remain major players in business travel, Jetstar is increasingly becoming another option for companies focused on controlling expenditure.

Businesses Are Looking for Value, Not Eliminating Travel

For many Australian businesses, managing travel costs does not necessarily mean cancelling trips. Instead, organisations are examining where they can reduce expenses while continuing to send employees to meetings, conferences, projects and client engagements.

This is particularly important for SMEs, where travel can represent a significant operational expense. Choosing a lower-cost airfare for appropriate trips can help businesses preserve their travel programs while allocating resources to other priorities. Jetstar itself now actively markets business-travel options, including flexible fare products and participation in Qantas Business Rewards for eligible businesses.

Corporate travel also appears to be demonstrating resilience. CT Partners reported that its corporate airline spend increased by around 15 per cent year-on-year in FY26, compared with approximately eight per cent for leisure and 11 per cent across the broader group. This suggests businesses continue to see value in having employees travel when there is a clear commercial purpose.

Jetstar Expands Its Premium Offering

Interestingly, Jetstar’s growing appeal to business travellers is occurring at the same time as the airline expands its premium offering.

The carrier is more than doubling Business Class capacity on its refurbished Boeing 787 Dreamliners, increasing the cabin from 21 to 44 seats. Jetstar says the additional capacity responds to increasing demand for premium seating on longer journeys. The airline has also introduced new upgrade options, giving eligible travellers additional ways to access Business Class.

This creates an interesting proposition for corporate travellers. Jetstar can continue competing primarily on affordability while providing premium options for employees who need additional comfort on longer flights.

Accommodation Is Another Opportunity for Corporate Savings

Airfares are only one component of the overall cost of a business trip. Accommodation, meals, transport and incidental expenses can quickly increase the total spend, particularly when an employee needs to remain in another city for several weeks or months.

For companies sending employees to New South Wales for projects, relocations, training or extended assignments, fully furnished serviced apartments in Sydney can provide a practical alternative to traditional hotel accommodation. Serviced apartments combine residential-style facilities with the convenience required by business travellers. Features such as a kitchen, laundry facilities, separate living spaces and dedicated work areas can be particularly useful during extended stays, while allowing businesses to manage accommodation costs more effectively.

This approach reflects the same value-focused thinking that is influencing airline choices: businesses are not necessarily looking for the cheapest option available, but rather the best combination of cost, comfort, convenience and productivity.

Corporate Travel Is Becoming More Flexible

The growing use of low-cost carriers also highlights how corporate travel policies are becoming more flexible. Traditional policies may have centred heavily on preferred full-service airlines, but businesses now have more reason to consider different carriers depending on the route, trip duration, baggage requirements and employee needs.

Jetstar has also improved its accessibility for the corporate travel sector. Masson noted that improvements to the airline’s domestic and trans-Tasman network, together with making its content available through global distribution systems, have made it easier for travel agents to incorporate Jetstar into corporate bookings.

That convenience matters because business travellers still expect efficient booking and itinerary management even when their employers are pursuing savings.

Rising Airfares Keep Cost Management in Focus

The renewed focus on value comes as businesses continue to pay close attention to airfare costs and volatility. Travel buyers are increasingly looking beyond headline ticket prices and considering the total cost of each journey.

Recent industry advice for SMEs has similarly focused on smarter travel management rather than simply eliminating trips. Strategies can include travelling outside peak corporate days, setting appropriate accommodation rate limits and reviewing how company travel policies influence booking behaviour.

For companies, the objective is increasingly about ensuring every travel dollar delivers value.

A Changing Business Travel Market

Jetstar’s expanding corporate presence demonstrates how the boundaries between budget and business travel are becoming less rigid. A low-cost airline can appeal to price-conscious organisations while simultaneously investing in premium cabins and greater flexibility.

For Australian companies, this creates more choice. Businesses can assess each journey individually and decide where premium services are justified and where more economical alternatives make sense.

Ultimately, the shift reflects a broader change in corporate travel. Companies still recognise the importance of bringing employees, clients and partners together, but they are becoming more strategic about how they spend. From choosing lower-cost flights to selecting flexible, residential-style accommodation, the modern business travel program is increasingly about achieving the right balance between affordability, convenience, comfort and productivity.