As we enter the third quarter of 2024, the business travel industry is expected to see significant growth. While traveling both domestically and internationally, we have noticed an increase in business travelers at most of the airports we frequent. Everyone thought that business travel would decline with several remote communication platforms introduced during the pandemic, but that did not happen. When it comes to business, basic communication, information exchange, online calls and emails are useful. For non-basic business interactions, face-to-face meetings are more valuable.
Speaking of data, a GBTA study predicts that business travel spending will surpass $1 trillion by 2024 and could surpass that figure by 2027. Business travel is no longer a small slice of the picture, but the fastest-growing segment of the global tourism industry. Estimates suggest that by 2030, the international business travel industry could soar to $2.97 trillion, up significantly from $711 billion in 2021.
A recent Deloitte report cited the return of live events and easing of travel restrictions as the primary drivers of the continued rise in business travel. Currently, the average business traveler takes nine business trips per year. Notably, these trips can range from as short as two days to longer assignments of up to 28 days. The trend of combining business travel with leisure activities, often referred to as “bleisure travel,” has recently gained impressive momentum, and this growing popularity shows no signs of slowing down anytime soon.
According to Allied Market Research, the global bleisure market was worth a massive $315.3 billion in 2022. It is expected to more than double over the next decade to surpass $731.4 billion by 2032. This trend suggests a compound annual growth rate of 8.9%.
The macro trend of globalization and the rapid growth of emerging markets, especially in fast-developing economies such as China and India, are significantly accelerating the trajectory of business travel. For organizations expanding their international operations, establishing a foothold in local markets through face-to-face meetings is a key part of a successful strategy.
So what other factors are driving this surge in demand? There have been many claims over the past few years that virtual meetings will replace in-person business meetings, but what is driving this surge in business travel?
Let’s take a closer look at what’s really fueling this wave and how it will impact hoteliers in the short and long term.
How has the business travel industry evolved from 2020 to 2024?
According to a Skift report, business travel is becoming more goal-driven and detailed planning is done to ensure optimal value. Business travel that directly contributes to revenue growth, such as closing a deal or contract, is being considered more favorably. There is also a shift in focus towards environmental sustainability in this sector, as companies are turning to eco-friendly travel options to limit their carbon footprint, increasing the demand for eco-friendly hotels and sustainable travel solutions. Notably, a staggering 88% of business leaders said they prefer hotels that clearly demonstrate their commitment to sustainability.
Demographic shifts are also evident as young professionals become more frequent flyers. For this new generation of workers, business travel is a benefit, not a hassle. According to a Forbes article, 65% of young professionals view business travel as a status symbol.
Forecasts suggest that business travel is set to rebound strongly this year. A survey by the Global Business Travel Association (GBTA) predicts a boom of around 21%. Other insights from the report:
- U.S. business travel is expected to increase by 25% due to a healthy economy, a preference for in-person meetings, and an increase in remote work.
- In Europe, business travel is expected to increase due to economic recovery, expansion of international business and the growing trend of remote working and “digital nomads”.
- Business travel in the Middle East and Africa is expected to grow by 15% due to improving economies, expanding businesses and a growing “business travel” culture among the middle class.
What strategies are hotels implementing to attract business travelers?
Hotels are adapting to the rise in business travel by updating their services to cater to the needs of business travelers. One key strategy is to offer flexible booking options, considering that business travelers' schedules often change. Hotels that allow for rescheduling, late arrivals, and easy cancellations are favored by these travelers. There is also a rise in travelers who combine business and leisure trips, known as “bleisure” trips, who extend their business trips and use their free time to explore local attractions and activities.
By 2024, 75% of business travelers expect hotels to offer flexible cancellation policies. Additionally, rewards programs that offer perks like free Wi-Fi, room upgrades, and access to business facilities are attractive to business travelers. Hotel bookings by business travelers using rewards systems are expected to grow 10% in 2024.
Hotels also attract business travelers by offering amenities tailored to their needs, including high-speed internet, in-room work areas, business centers, meeting spaces, etc. Some hotels even offer technological devices such as iPads and smart TVs to help guests work more efficiently.
Frictionless service is also important for hotels catering to business travelers. Understanding that convenience and speed are important to these guests, hotels offer personalized service, quick check-in/check-out, 24/7 concierge services, and technology solutions such as mobile apps for room service and check-in, and AI chatbots to answer customer questions.
Location is important for hotels catering to business travelers, and they often choose locations in or near business centers and transport hubs. Partnering with local businesses can provide perks, such as discounts and special offers, to guests, enhancing their travel experience.
Understanding that business travel can be stressful, hotels are increasingly placing emphasis on wellness. Hotels offer facilities such as fitness centers, spas, healthy dining options, and even mindfulness and yoga sessions. These wellness services play a key role in attracting business travelers who want to balance their work and health.
Finally, today's business travellers care about sustainability and prefer properties and brands that align with their personal values, such as energy efficiency, waste management and giving back to the community.
How DerbySoft makes business travel possible
DerbySoft provides world-class solutions for hotels looking to tap into the growing business travel sector. The company's connectivity solutions increase hotel visibility on top business travel platforms, such as Global Distribution Systems (GDS), and improve the hotel booking experience for business travelers. The company's newly launched Business Travel Solutions (BTS) connects travel management companies (TMCs) and suppliers with real-time rate and booking data, and integrates mapping, content, and coordination services. This technology integration enables TMCs to effectively serve business travelers.
DerbySoft also offers advanced digital marketing services such as SEO and SEM to further increase hotels' online visibility and attract tech-savvy business travelers. The company's metasearch management tools give hotels a strong presence on metasearch platforms, while its advanced data analytics capabilities provide valuable insights into business traveler preferences. These insights serve as an effective tool for hotels to develop marketing strategies targeted at business travelers, increasing customer satisfaction and loyalty.
By leveraging DerbySoft's comprehensive marketing and connectivity solutions, hotels can effectively capitalize on the growth of business travel in 2024 and beyond, ultimately increasing revenue and profitability.
About DerbySoft
DerbySoft is a travel commerce accelerator with a mission to unify the diverse elements of travel and build a unified, efficient ecosystem of connected services, high-performance AI-driven marketing services, and an end-to-end content platform. Our world-class services are designed to enable seamless, frictionless commerce, accelerating the pace at which properties connect, grow, and optimize profits. DerbySoft is constantly pushing the boundaries of innovation to unlock new opportunities and accelerate travel commerce. Our team of travel industry experts is passionate about connecting people and technology, and is committed to enhancing every aspect of travel, making it more accessible, efficient, and enjoyable for everyone. Our approach is focused on making travel better, not just today, but for years to come. Headquartered in Dallas, Texas, USA, DerbySoft's cutting-edge technology is trusted by leading online travel sales partners and hotel companies in 197 countries around the world. For more information, please visit DerbySoft.com.
With six offices worldwide and over 300 employees in over 11 countries, DerbySoft continues to grow and develop the next generation of online hotel delivery infrastructure. DerbySoft.com.
Caroline Terry
Corporate Marketing Director
Derby Soft
