7 trends set to redefine business travel in 2024
Laura Busby, commercial director of Good Travel Management, shares what she thinks will be the biggest business travel trends of 2024…
More focus on the business travel community
Studies show 83 per cent of workers see corporate travel as a perk of their job and 65 per cent of millennials consider corporate travel proof of their significance within their organisation.
More than ever, business travel will continue to be a valuable learning experience for employees, enhancing their skills in negotiation, communication, and cultural understanding.
We believe it will become an increased priority for businesses as more recognise it as a way to recruit and retain 2024’s top talent.
More companies realise travel is not only significant for building business relationships with customers. It can motivate their employees to perform at a higher level, provide opportunities for team members to bond, and reinforce company culture.
Sustainability
In November this year, Virgin Atlantic’s historic flight using 100 per cent Sustainable Aviation Fuel (SAF) flew from London Heathrow to New York JFK.
Sustainability seems to be on every business radar and though the costs may be initially steeper, organisations must ask whether they can truly afford to neglect sustainable travel.
One study confirmed that businesses could risk losing out on the top candidates, with 53 per cent agreeing they would prioritise companies supporting it over those that did not.
We believe CO2 measurement for travel will become increasingly more important in 2024, but it can be challenging given that there are so many ways to measure it. By partnering with CO2 experts, businesses can introduce accurate approval mechanisms dependent on CO2 emissions for planned trips.
ROI will be key
ROI for business travel has increased in importance, and it will continue to be a key 2024 focus. According to a recent Global Business Travel Association survey, 62 per cent of respondents said cost management was one of the top strategies for travel managers in 2024.
We predict there will be fewer business excursions in 2024, but the ones that take place, will have a longer duration, with companies trying to maximise the ROI of each trip. Our data also shows that low cost flight carriers now represent 1 in 3 fares globally, showing price point is still important for those booking business travel.
One more considered factor will be whether your company is successfully capturing the entire cost of a trip. More businesses will want to determine the holistic cost from the first coffee purchased at the airport to the cost of flights, hotels, and any other additional purchases.
This is where expense management software will become more prominent, as it amalgamates all travel data with expenses and vice versa.
Risk management and duty of care
According to the GBTA survey, 44 per cent view traveller safety and security as increasingly important in 2024.
It’s hardly surprising as devastating conflict in the Middle East has led to demonstrations around the world, and there has been a rise in bomb threats at airports and tourist attractions. There have also been isolated instances of terror attacks targeting tourists, in Brussels and Uganda.
Considering these complexities, it’s more important than ever to have an accessible company travel policy. ISO 31030 documentation is essential here, as it provides a framework for organisations to develop, implement and continually improve their travel risk management processes.
Not only this, but to ensure business success and the safety of different employee demographics in 2024 we must tailor our travel risk management approach to the unique needs of our company.
This means profiling a traveller before they go on an international workplace assignment and the destination and checking whether the area is medium-high-risk for that individual.
Working with a travel management company here, is ideal, as they collect and remain up to date with legal and non-legal country information and can help your business develop risk management plans before employee travel.
Increased fare stability
There have been numerous conflicting reports about the cost of air travel in 2024, with some companies saying prices will fall and others saying they will rise by as much as seven percent.
However, according to Good Travel Management’s internal data the expected price increase per air travel booking in 2024, will be around 4.8 per cent. With the average air fare costing £837 in 2023, this could actually be as little as a £15 price increase per person.
Considering these findings, we think the data suggests that air fares are levelling out and 2024 will see a trend of increased fare stability across the global market.
Other predictions are that seat capacity for flights in Q1 will be higher than 2019, meaning more availability and options on flights for business travellers.
A shift in how hotels prioritise bookings
A growing 2024 trend is hotels shifting from pushing occupancy to raising revenue per room. In short, they will be accepting lower occupancy, as they prioritise selling rooms at higher rates instead.
Corporations are likely to spend more on hotel accommodation in the coming year. Because of this, we are also seeing an increased trend in certain booking behaviours among customers.
54 per cent of our customers tend to book flex rates over non-flex rates and as costs continue to rise, we believe this percentage will increase next year.
The rise of the ‘Zenvoyager’
Generation Z has a unique perspective on travel due to the massive boost in globalisation that has occurred during their lifetime. And their perspective will continue to alter how the business travel industry operates, each year.
An evident shift among Gen Z adults is their increasing preference for accommodation like Airbnb’s over traditional hotel chains, which means business travel may become less focused on booking this type of accommodation.
When it comes to travel convenience, Gen Z demonstrates a pronounced inclination towards apps that streamline the process. They actively engage with applications that facilitate booking accommodations, manage flights, and secure attractive travel deals. Technology plays a pivotal role in their travel arrangements.
This strong reliance on technology serves as a clear indicator for industries to adapt. Businesses that lack a dedicated app or possess an unreliable online presence risk losing their Gen Z audience.
Research also shows nearly 68 per cent of Gen Z in the workforce highly prioritise having a good work-life balance, which they achieve by taking bleisure trips. They know the value of work, so Gen Z travellers squeeze in elements of relaxation during work trips to strike the perfect balance between work and play.
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