As we enter the end of the first quarter 2024, cost consciousness continues to dominate the priorities of buyers. Corporates are feeling the impact of price hikes over the past two years, but there’s a glimmer of hope for stabilisation throughout the year. While business travel volumes are expected to keep growing, air fares, hotel rates, and car hire costs are projected to rise at a more moderate pace compared to previous years.
The GBTA’s Business Travel Index Outlook report predicts that business travel spending will reach $1.4 trillion in 2024 and to nearly $1.8 trillion by 2027. According to the report this is due to more “favourable global economic conditions and the subsiding fears of recessions”.
Various industry reports suggest that average air fares, hotel rates, and car hire costs could increase further however the extent of the increase in business travel budgets will depend on factors such as inflationary pressure and geopolitical tensions, notably conflicts in Ukraine and Gaza.
Face-to-face meetings are expected to grow in 2024
Despite the rise of flexible and remote working models, the need for face-to-face meetings is expected to grow in 2024.
In the complex realm of corporate events, virtual platforms have certainly made their mark, but there’s no doubt that in-person meetings increase levels of engagement, networking and interaction. Travellers continue to embrace in-person connections, with “87% of business travellers agreeing that business travel is important to company growth: Source: Uber and GBTA report”.
Sustainability and business travel
Concerns regarding travel-related carbon emissions continue to influence both travel buyers and suppliers with 78% of organisations stating that they plan to achieve net-zero goals by the end of the year. Despite being a priority, sustainability poses a financial challenge with a significant proportion of organisations citing cost as a major contributing factor.
Business leaders ranked the threats posed by climate change as a top issue in Deloitte’s latest global C-suite survey, second only to the economic outlook, with 75% saying that their organisations have increased their sustainability investments over the past year.
According to a recent arrangeMY survey, 88% of travellers are encouraged to travel more sustainably, and as such are actively considering the environment when making business travel decisions. Travellers are also planning their meetings and diaries better with a move towards fewer business trips, but with longer durations.
Laura Dudley, Head of Account Management at arrangeMY said that “Our client’s focus on sustainability has shifted further up the priority list, they are wanting to understand a true picture of their CO2 emissions and ways they can reduce them in order to meet carbon reduction targets”.
Event planners are also prioritising eco-friendly practices, from reducing waste and carbon emissions to sourcing local and sustainable materials, such as opting for plastic-free and eco-friendly swag.
Bleisure in the business travel market
The blend of business and leisure continues to grow, with travellers extending trips for leisure to maximise their time away. Travellers are seeking to combine business trips with leisure trips, with 57% of companies allowing employees to extend business trips as part of their travel policy. According to a report by Future Market Insights, the bleisure market is predicted to maintain its current trajectory, with a projected CAGR (compound annual growth rate) of 19.5% from 2023 to 2033.
Technology-driven
Technology remains incredibly important for business travel and plays a crucial role in the meetings and events process.
Corporate travel management platforms will optimise booking, enforce travel policy and approval processes and provide companies with full visibility into their business travel spend. Further, businesses will rely heavily on end-to-end corporate travel technology for managing logistics, gaining insights, ensuring duty of care, and controlling costs.
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