Technology may have opened up new ways for individuals to connect, but there is still no substitute for face-to-face communication. This is why business travel remains important for modern companies. However, if you want to make the most out of your corporate trips, being knowledgeable about the ins and outs of the industry is important. This is where checking business travel statistics becomes necessary.
In this article, we will be discussing everything from the market size of the business travel industry to the concerns of your average corporate traveler. Furthermore, we have provided some data on emerging business travel technologies. This way, it would be easier to understand how to manage your company trips better as well as prepare yourself for the shifting demands of the industry.
Corporate trips are prevalent now more than ever, thanks to the increasingly globalized business landscape. In fact, millions of business travel initiatives are launched each year. If that’s not enough, a huge fraction of airline company profits now come from business travelers.
Companies across the globe understand how important it is to invest in corporate travel. This is why the business travel market size in various countries are predicted to increase in the coming years.
Unfortunately, just as the spending on corporate trips increases, the rates for accommodations, flights, and other travel necessities are also expected to go up soon. In fact, in the most expensive cities for business travel, companies now spend an average of $799 per person per day.
American companies are one of the top spenders when it comes to business travel. Simply put, many US companies spend to send their employees on domestic and international trips for business purposes. However, much like the rest of the globe, they are also witnessing an increase in business trips.
It’s no secret that corporate travel is expensive. As you’ll see in the data below, companies spend millions of dollars per year on sending their employees on business trips. Furthermore, these budgets are expected to increase in the coming years.
To ensure steady business travel funding, it is best that you plan and create a budget for it ahead of time. Moreover, you should keep all travel costs in check. For this, you might find that budgeting software tools are useful for your company.
If your company is affiliated with businesses located halfway across the globe or on the other side of the country, then spending on air travel is inevitable. So, you should prepare a good chunk of your budget for airfares, especially considering flight tickets and miscellaneous spending at airports are increasingly expensive. You might also want to time your booking so you can get tickets at lower rates.
More often than not, business travelers still need to go from one place to another upon reaching their destinations. So, it makes sense for them to spend on road transportation. For domestic trips just outside of the city, this might involve gas money for their personal vehicles. In case they have to go farther away, they will need to allocate a budget for car rental. There might also be those who opt to use ride-sharing applications during the trip.
Business travelers require accommodations that are affordable, secure, and trustworthy. What’s more, staying at a place where they have access to conveniences such as workstations and free WiFi can ensure their productivity while on the go. This is why many companies are willing to spend more on hotel rooms and Airbnb accommodations.
Source: CertifyDesigned by
Many companies may think that business travel is passé or that it is a waste of money. However, statistics show that this is most certainly not the case. Corporate trips actually allow businesses to foster stronger and more close-knit relationships with potential clients and partners. Thus, they yield a good ROI for their business travel initiatives and even grow their company at a faster pace.
In addition, professionals cite business travel as a factor when it comes to employee acquisition and retention. In other words, by giving your staff members the opportunity to travel for business purposes, you are boosting morale and reinforcing loyalty.
Corporate travelers are consumers. So, in a similar light as your typical shopper, they expect personalized experiences when it comes to traveling. In fact, they are more than willing to provide their preferences and personal information if it means travel agencies and airline companies will provide them with better products and services. In addition to these, modern business travelers also don’t mind paying extra out of their pocket for upgrades on accommodations and transportation.
So, how can companies improve the overall business travel experience? Now that we know that the future of corporate travel anchors on personalization and convenience, it is important to utilize the available technologies to enhance the travel management process.
Moreover, travel managers should actively measure the satisfaction of business travelers to determine any other points for improvement. To do this, you might want to consider utilizing best-in-class business intelligence platforms or top-rated data analytics software.
Real-Time Travel Notifications
Automatic Flight Rebooking Options
Face-to-Face Interaction With Airline Agents
Source: IATA 2018 Global Passenger SurveyDesigned by
“Work hard, play hard” is the mantra of modern business travelers. It seems that more and more employees are making it a point to extend their trip for leisure or, at the very least, allocate time for fun activities during a trip. Moreover, bleisure, trips that are both for business and leisure, are becoming more and more popular as work-life balance is becoming a main priority for many businesses.
One thing to note about bleisure, however, is that this may also pose problems for companies when it comes to accountability and productivity. After all, administrators don’t know how their business travelers will spend their time during a trip. In case you feel like this might be an issue for you, you can always opt to use time tracking software solutions. Using these, business travelers may log their productive hours even while away from the office.
Nowadays, business travelers are not shy about taking some time off while on a trip. After all, they deserve to have a bit of fun after working long hours out of the office. This is why they expect companies to cover bleisure in their travel policies.
So, who is the modern corporate traveler? Statistics show that these travelers are mostly college-educated males who are older than 45 years old. They go on trips to attend conferences, build business partnerships, develop their careers, and find investors. Moreover, a handful of them spends a good fraction of their year traveling for business purposes.
Millennials are poised to comprise the majority of the workforce in the coming years. So, it only makes sense that we tackle how millennial employees view business travel and how they travel for business.
In the statistics we’ve culled, millennials see being sent on corporate trips as a job perk than an inconvenience. So much so that they even create reasons to travel for business. In fact, as of 2016, this generation has become the most active business travelers.
Another thing that sets them apart from previous generations is that while they prioritize cost-efficiency by avoiding expensive hotels and flights, they have a penchant for bleisure. This means they make it a point to balance each trip for both business and leisure.
To attend conferences%
To meet with other companies for business planning%
For professional development%
To meet with coworkers in a different location%
To pitch new products%
Source: SkiftDesigned by
Business travelers represent your company. So, the manner in which they travel must be in line with your business values. This is why it is pertinent to have a corporate travel policy.
With this, you can set standards as to where they should stay, which airlines to pick, what car rentals to choose. It also allows you to set rules around what gifts may be purchased during the trip. In addition, travel policies can serve as a guideline for on-site spending.
However, not every company and business traveler realizes the value of a travel policy. So, many opt not to create one.
If you don’t have one, you might want to find a good travel management software to do it. As an alternative, you may also utilize reliable business process management solutions.
Of course, simply having a travel policy is not a surefire way to maximize corporate trips. Its positive effect on your business travel processes depends on how you implement it. As you’ll see in the business travel statistics below, companies with travel policies encounter their fair share of problems.
Many of them have travel policies that are not in line with their company culture. Furthermore, not all of them can manage their policies effectively. Lastly, they have many employees who choose not to comply with the policy they have in place.
While there may be quite a lot of tools that you can use to optimize the business travel experience, the industry still has a long way to go. Corporate travelers still encounter plenty of obstacles and concerns that may impede them from being the most efficient they can be. For example, many of them still need to deal with delayed flights, long waiting times at the airport, as well as the hassle of lengthy security processes.
Limited Airline Seat Availability
Earning Frequent Flyer Points
Ease of Passing Through Security
Source: StatistaDesigned by
Corporate travelers are a tech-savvy bunch. They rely heavily on the internet and their smartphones to manage their trips. Moreover, they have quite a knack for learning new technology. As a result, they have high expectations for their companies, travel agencies, airline companies, and similar firms when it comes to innovation.
For example, they want to have access to all-in-one applications that will help them consolidate and accelerate the travel planning process. In addition, they are looking forward to having voice-activated assistants for travel queries. As you’ll see below, these are only a few of the many things that they are expecting from the industry.
Traveling involves quite a lot of expenditures. Therefore, corporate travelers make a large number of transactions that need to be accounted for after each trip. However, manually tracking spending during a trip can be tedious and prone to errors.
As a result, many travelers are now relying on financial technology, such as expense management software and cashless transactions. These allow them to record their expenditures as they go and make sure that they remain within budget. With these, it is easier for companies to maximize their travel budget down to the last penny.
Car rental and the use of personal vehicles are still prevalent when it comes to business travel. However, an increasing number of corporate travelers are now opting to use ride-hailing or ride-sharing applications. After all, by using these technologies, they no longer need to worry about car maintenance or parking while on the trip.
Business travelers, while often trained to deal with unforeseen circumstances, want to come prepared. That is to say; they like visualizing how their travel plans are going to pan out well before the actual trip. To do this, it is important that they familiarize themselves with their destination.
This is where augmented reality (AR) and virtual reality (VR) comes in. These technologies will allow them to get the lay of the land. So, it is easier to map out their itineraries and manage expectations for the trip. For more information about this tech, be sure to check out our list of VR statistics for 2019.
In a similar vein as practically every other industry, business travel is also being reshaped by artificial intelligence (AI). Many travel companies, managers, and corporate travelers rely on this tech to make their trips much more efficient. As you’ll see below, they find this very useful when it comes to monitoring employees as well as finding travel suggestions for planning.
If you are looking for emerging trends in AI usage, we also have this list of AI statistics that you might find handy.
The business landscape is highly connected and globalized. While it may be convenient to connect with people using video conferencing and similar modes of communication, we have to admit that these are not enough.
After all, getting your message across to customers, colleagues, and potential partners is only half the purpose of these business interactions. If you truly want to build rapport, develop trust, and ensure coordination. Undoubtedly, face-to-face meetings are still the way to go. This is why business travel remains a crucial part of many industries.
As you have already read in our article, corporate travel is expensive, and it is getting more so every year. However, when these are planned thoroughly and executed properly, you can open more opportunities for your company. It can even help you attract the best talents for your company.
Just be sure to take the time to understand the needs of your business travelers. This way, you can have a better idea of how you can improve the experience for them and maximize their participation in each trip.
To sum up, we hope that our list of business travel statistics was able to help you get a better idea of the state of the industry as well as where it is headed. With this data, preparing for future business travel efforts should be much simpler.
In case you are wondering how to stay productive during business trips, be sure to check out our guide on how to get work done during flights. With this, you can get tips and tricks regarding corporate travel productivity.
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