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ATIA Calls for Stronger Support for Travel Businesses in Federal Election

With Australia’s airfares surging — up 13% nationally and as much as 95% on key routes — travellers are paying the price for a market dominated by just two airline groups controlling 98% of domestic passengers.
 
In the lead up to the Federal Election, the Australian Travel Industry Association (ATIA) has launched its Election Asks and is calling on all political parties to commit to urgent aviation reform, warning that the lack of competition is driving up costs, reducing connectivity, and isolating regional communities.
 
If adopted, ATIA’s proposed changes will help drive down airfares, increase flight availability, strengthen Australia’s travel industry, and deliver better services for travellers.
 
ATIA’s key election priorities:

1. Stronger Airline Competition to Lower Fares and Improve Services

• The ACCC should be empowered and funded to conduct bi-annual market concentration studies for both domestic and international aviation, ensuring transparency in pricing and competition impacts.
• The ACCC’s Domestic Airline Competition Monitoring reports should be extended beyond 2026, maintaining oversight on pricing, capacity, and service quality.
• The government should adopt a clear, consumer-focused framework for bilateral air service agreements, ensuring that decisions on international flight capacity prioritise affordability and accessibility for Australians. 

2. Championing Trusted Travel Businesses

• A co-funded national consumer awareness campaign should be launched to promote ATIA Accredited businesses, ensuring Australians book with trusted, financially secure providers that comply with Australian Consumer Law.
• The government must recognise and prioritise the role of travel agents and tour operators in the broader tourism industry and ensure policy settings support their sustainability and growth.
• This includes ensuring the proposed Aviation Industry Ombuds Scheme remain focused on airlines who set fare rules and hold consumer funds and airports especially given the robust accreditation framework and highly successful independent dispute resolution process already in place through ATIA

3. A Long-Term Workforce Strategy to Fill Skills Gaps

• The next government must commit to a long-term funding model for traineeship incentives, ensuring businesses can afford to take on and train new staff.

• Federal and state governments must align funding and priorities for travel industry training, supporting the 72% of the workforce that is female and ensuring travel remains a viable and sustainable career path. Over 80% of employers in Travel report there are already not enough skilled workers to meet demand. 

Key statistics and facts

• In 2024, Australia’s travel agents sold 23 million air tickets worth $18.5 Billion.
• Two airlines groups now dominate over 98% of domestic passengers. Airfares spiked, up 13% nationally with some key routes soaring 95%. When there are three airlines, fares drop by up to 50% yet no route in Australia has that today.
• A lack of competition has also impacted connectivity and can isolate the regions: 23 fewer routes operated in 2024 compared with 2023, a 14% drop.
• 75% of all international routes to and from Australia are considered to be operating as a monopoly, duopoly or triopoly. Only 6.5% of all routes were found to be near the US Department of Transport definition of an open market.
• The travel workforce is 72% female, attracted by the sector’s flexibility.
• 92% of ATIA’s members are small businesses.

QUOTES ATTRIBUTABLE TO ATIA CEO DEAN LONG:
"Travellers and the Travel Industry are paying the price for a broken aviation market—fares are soaring, routes are disappearing, and regional communities are being left behind. The ACCC warns that weak competition has left Australians with soaring airfares, patchy service, and reduced connectivity. Reduced competition means Australian travellers are paying more for less.”
 
“We need immediate action to restore competition and deliver fairer fares for Australians."
 
"Australia’s travel industry is the backbone of a $69 billion sector, yet without urgent reforms, we risk higher costs, reduced connectivity, and fewer choices for consumers. This election is a chance for all political parties to commit to real solutions—not just in aviation, but across the entire travel ecosystem."
 
"ATIA’s election asks go beyond airfares. We are also seeking commitments from both sides of Politics for measures that will address current chronic skills shortfalls, raise consumer awareness of the importance of only booking through accredited Travel Agents and Tour operators, and the introduction of consumer protections that make airlines responsible for airline failures not travel businesses.”
 
“ These changes will bring down prices, increase flight availability, and strengthen the entire sector for the benefit of travelling Australians and Australian Travel Businesses and Tour Operators."