Dive Brief:
- When it comes to business travel, traveler safety is the number one priority for companies, followed by cost savings, traveler experience and technology integration, according to a joint research report on U.S. small and midsize enterprises by business travel management provider Corporate Traveler and the Global Business Travel Association.
- Participants also reported that their biggest pain points are the cost of travel (63%), understanding the ROI and measuring success (38%), employee traveler tracking (37%), manual processes (37%) and the lack of data/reporting (35%).
- SMEs are increasingly looking to establish a balance between cost savings and the quality of the travel experiences in order to maximize the benefits of business travel, maintain employee satisfaction and enhance client relationships. Meanwhile, several hotel groups have rolled out programs in recent months to boost loyalty from SME travelers.
Dive Insight:
For their joint report, “Navigating the future of business travel: Key trends and insights for 2024,” Corporate Traveler and GBTA surveyed business travel decision-makers at U.S.-based SMEs to get a detailed look at the key trends, insights and behaviors shaping the sector.
Traveler safety topped the list of priorities at 40%, followed by cost savings (19%) then traveler experience and technology integration (each at 11%). Policy compliance (8%) and reporting and sustainability (each at 5%) rounded out the top five.
The respondents included administrative and executive assistants, HR personnel, C-suite executives and company travel managers at SMEs with an annual travel spend between $200,000 and $10 million.
According to the report, 63% of companies cited rising prices as an ongoing issue, and more than half (52%) of respondents said tighter budget restrictions have impacted their current decision-making process.
In the survey, participants said common challenges they encounter when it comes to saving money include high-cost destinations (57%), followed by employee behavior (45%) — referring to those who prioritize comfort and convenience over savings. Add-ons and extra fees (40%), such as checked bags, priority boarding or hotel room services, were also noted.
To cut costs, companies are trying out different strategies. Two-thirds of companies in the survey are implementing budget-friendly options (65%), while more than half of companies are working with travel management solutions (52%).
However, travel costs are expected to stabilize soon, with average daily rates cooling worldwide, according to GBTA and CWT’s 2025 Global Business Travel Forecast, released earlier this month. For 2025, the report forecasts smaller ADR increases in the North America region as leisure demand softens.
Business travel is driving lodging demand growth in the U.S., and travelers from SMEs play an important role. Some 85% of business transient travelers to Hilton properties work for small- and medium-sized businesses, Christiane Cabot Bini, Hilton’s vice president of global business travel sales, told Hotel Dive in May.
Hilton, which launched Hilton for Business this year, is one of a slew of hotel companies to court SME travelers in recent months. In April, Wyndham expanded its Wyndham Business program to create a B2B extension of its loyalty program, and in July, Marriott International launched Business Access by Marriott Bonvoy to ease the travel management process for SMEs.
