Connect with us

Travel

Corporate travel revival signals new opportunities for hotels

Published

2 months ago

on

Corporate travel revival signals new opportunities for hotels

While conferences and in-person client meetings drive demand, high costs and compliance challenges shape the recovery / Credit: Coronado via Shutterstock

The business travel landscape has undergone a transformation since the pandemic, with corporate travel now experiencing a resurgence, though it has yet to fully return to pre-2020 patterns.

Recent data highlights a steady climb in travel demand among companies, driven by the need to foster in-person relationships, attend conferences, and build client connections.

Deloitte’s latest survey of travel managers and budget owners reveals that corporate travel spend is expected to grow by 8% to 12% in 2024, suggesting a robust comeback, albeit shaped by new expectations around cost and sustainability.

“Corporate travel is making a comeback, but the industry has changed,” one travel manager noted. “There’s more scrutiny around every trip, with companies considering both financial costs and environmental impact.”

This evolving dynamic presents unique opportunities and challenges for hotels to adapt their services and offerings for a changing clientele.

Balancing costs with experience and sustainability

As companies resume travel, they’re also examining costs more closely. In 2023, airfare costs in the US rose by over 8% compared to 2019, with hotel rates increasing similarly.

Access the most comprehensive Company Profiles
on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free
sample

Your download email will arrive shortly

We are confident about the
unique
quality of our Company Profiles. However, we want you to make the most
beneficial
decision for your business, so we offer a free sample that you can download by
submitting the below form

By GlobalData







Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Nearly half of travel managers report that their companies are encouraging employees to book lower-cost flights and limit spending on accommodations. However, this has not stopped businesses from also seeking more comfortable and sustainable options, leading to complex negotiations with travel suppliers.

Hotels are in a unique position to meet these evolving needs by providing flexible, cost-effective options that don’t sacrifice quality.

One strategy may involve offering more loyalty rewards and streamlined cancellation policies, features that are increasingly attractive to corporate travellers who often face last-minute schedule changes.

According to the report, ease of managing travel changes and loyalty rewards were among the top reasons corporate travellers booked directly with hotel suppliers rather than through third-party channels.

Growing importance of booking compliance and direct hotel relationships

While corporate booking platforms are standard across many organisations, a surprising number of employees still choose to book outside these channels. Deloitte’s findings indicate that only 56% of surveyed employees consistently use their company’s booking tool or corporate travel agency.

This trend, known as “rogue booking,” is driven by several factors, including convenience, better deals, and a desire to earn loyalty points.

For hotels, this presents an opportunity to capture direct bookings from business travellers by offering competitive rates and highlighting features that simplify trip management.

“We find that corporate travellers value convenience and flexibility in their bookings,” explained a hotel marketing executive. “Creating a seamless booking experience with flexible cancellation options and additional perks can make a significant difference.”

Hoteliers can leverage these trends by offering personalised experiences and rewards tailored to business guests, further enhancing the attractiveness of direct booking channels.

Corporate travel’s shift towards sustainable choices

The corporate travel rebound comes with heightened emphasis on sustainability, reflecting companies’ growing commitment to environmental responsibility.

Over half of travel managers in Deloitte’s survey reported that they have already implemented measures to reduce travel-related emissions. Notably, corporate booking platforms are increasingly incorporating features like sustainable aviation fuel options and hotel certifications, making it easier for travellers to make environmentally conscious choices.

For hotels, this shift underscores the value of pursuing sustainable certifications and practices, which can boost appeal to eco-conscious business clients.

“Our corporate clients are increasingly requesting information about our sustainability efforts,” said a representative from a large hotel chain. “Having green certifications and actively promoting sustainable practices is now essential to meeting the demands of this new era of corporate travel.”

As corporate travel gradually returns to pre-pandemic levels, hotels that proactively address changing preferences around cost, convenience, and sustainability will be best positioned to capture and retain business clientele.


Related Topics:
Continue Reading