The future of corporate travel under growth
Posted: Sat Dec 07, 2024 9:37 am
Andres Romero
CEO and Project Manager
April 26, 2016
As business travel slowly grows in the U.S., travel management companies with greater digital tools will be able to capture more bookings.
A new report and the latest update to the North American Travel Association’s Core Travel Index (LTI) show that corporate and managed travel in the U.S. is in decline.
Phocuswright ’s recent report, “ US Corporate Travel: Market Size and Trends Report,” shows what most suspected: While increasing in size, the corporate travel market is growing at a slower rate than the leisure market .
“ We’ve seen a nice recovery in the ghana email address market, but we don’t see it coming as much as for leisure travel ,” said Lorraine Sileo, vice president of research at Phocuswright. “ Companies are being a little more conservative in their spending .”
A look at Phocuswright's projections for 2017 shows that total bookings are on the rise, but the growth rate is slow. According to these estimates, total bookings for corporate travel in the U.S. will increase from $110 billion in 2014 to an estimated $120 billion in 2017, a 9 percent increase over a four-year period.
The study also examined the mobile habits of business travelers, finding that a mobile revolution in corporate travel has yet to materialize.
More than half of business travelers searched for airline tickets on a smartphone , but less than 20 percent booked on a smartphone . Nearly half searched for hotel rooms, while a third booked a room on mobile.
According to Sileo, travel management companies have not yet provided powerful mobile tools for corporate travelers.
“ We found on the corporate side that mobile was more considered on the expense side, as a way to communicate with the traveler; it wasn’t used to a large extent ,” Sileo said. “Travel management companies that want to become a consistent solution need to be able to provide services and integrate more tools that do itinerary management and location-based services. We didn’t see much innovation at that point, when price tracking tools like TripBAM and peer-to-peer services can really change the market.”
Open bookings remain limited, Sileo noted, but sharing economy services will likely drive deeper integration.
CEO and Project Manager
April 26, 2016
As business travel slowly grows in the U.S., travel management companies with greater digital tools will be able to capture more bookings.
A new report and the latest update to the North American Travel Association’s Core Travel Index (LTI) show that corporate and managed travel in the U.S. is in decline.
Phocuswright ’s recent report, “ US Corporate Travel: Market Size and Trends Report,” shows what most suspected: While increasing in size, the corporate travel market is growing at a slower rate than the leisure market .
“ We’ve seen a nice recovery in the ghana email address market, but we don’t see it coming as much as for leisure travel ,” said Lorraine Sileo, vice president of research at Phocuswright. “ Companies are being a little more conservative in their spending .”
A look at Phocuswright's projections for 2017 shows that total bookings are on the rise, but the growth rate is slow. According to these estimates, total bookings for corporate travel in the U.S. will increase from $110 billion in 2014 to an estimated $120 billion in 2017, a 9 percent increase over a four-year period.
The study also examined the mobile habits of business travelers, finding that a mobile revolution in corporate travel has yet to materialize.
More than half of business travelers searched for airline tickets on a smartphone , but less than 20 percent booked on a smartphone . Nearly half searched for hotel rooms, while a third booked a room on mobile.
According to Sileo, travel management companies have not yet provided powerful mobile tools for corporate travelers.
“ We found on the corporate side that mobile was more considered on the expense side, as a way to communicate with the traveler; it wasn’t used to a large extent ,” Sileo said. “Travel management companies that want to become a consistent solution need to be able to provide services and integrate more tools that do itinerary management and location-based services. We didn’t see much innovation at that point, when price tracking tools like TripBAM and peer-to-peer services can really change the market.”
Open bookings remain limited, Sileo noted, but sharing economy services will likely drive deeper integration.