IN BRIEF | Qantas is slowing losing its share of the corporate market to Virgin Australia, according to a new survey of the nation's largest companies.
The third annual Morgan Stanley AlphaWise survey polled some 214 corporate travel managers at companies with more than $1 billion of revenue or 1,000 employees
While Qantas still holds a commanding 54% share of those company's business travel bookings against Virgin Australia's 27%, the challenger crept up 4% on the Flying Kangaroo for domestic bookings.
"Qantas’s reduced dominance with large accounts likely reflects Virgin’s graduation to full service carrier, in the sense that its now completed domestic offering is sufficient for the high demands of larger accounts" Morgan Stanley analyst Nicholas Markiewicz told The Financial Review.
Ironically, Markiewicz adds that the customers preferred Qantas over Virgin Australia in every category bar price – but price has become the primary driver for corporate travel managers, which in turn has seen Virgin gaining ground due to its lower fares.
Read more: Qantas loses business travellers to Virgin
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