INSIGHTS
Corporate Travel set to soar in 2024
In 2023, the corporate travel industry witnessed a dynamic shift as many businesses, travel sectors and countries experienced near full recovery, despite a number of lingering challenges and rapidly changing global issues.
What were the biggest takeaways from 2023? FCM shares this year’s highlights and challenges, as well as a look into 2024, to help you plan and budget for the year ahead – as reported by the Global Business Travel Association – the premier trade association for the worldwide business travel industry.
A wrap up of 2023
The global business travel sector continued to rebound, while a number of challenges and barriers emerged as drivers transforming the corporate travel sector.
• Some 84 per cent of companies said their business travel had largely or mostly recovered compared to 2019 levels. In spending terms, domestic business travel reached 77 per cent of pre-pandemic levels and international spend rose to 75 per cent.
• Hybrid work environments have continued to flourish and it is widely accepted that they will remain a factor in the business travel sector, with 68 per cent of saying it remains the current setup in their company.
• In-person meetings and conferences represented 55 per cent of the market and virtual meetings 52 per cent. While the trend to combine multi-purpose or multi-destination business trips was 49 per cent.
• The main challenges for companies in 2023 were corporate budgets keeping up with price increases (69 per cent), inflation and recession concerns (63 per cent) and geo-political events (44 per cent).
• Climate change concerns started to make more of an impact in 2023, particularly in Europe with 54 per cent seeing them as a travel barrier, compared to just 23 per cent in Asia-Pacific and 12 per cent in North America.
Strategic priorities for 2024
It’s no surprise that heading the strategic priorities for 2024 are travel budgets, program management, cost management strategies, sustainability, emerging retail models and investment in new technology. All issues also featuring strongly in our own FCM Consulting Q3 Report.
With global economic concerns and inflation in the headlines, 62 per cent of GBTA respondents stated that cost management is a top strategic priority for their company’s business travel program.
AI, technology and the NDC
Technology is clearly set to play a pivotal role, with advancements in artificial intelligence and advanced tools poised to improve efficiencies and streamline booking processes. The GBTA report supported this, with 63 per cent of stakeholders saying they intended to increase their investment in technology and digitalisation.
The impact AI is expected to have in 2024 received a mixed response, which perhaps underlies a diverse level of understanding of its uses and potential. Some 32 per cent were excited about its potential impact, while 33 per cent felt it was too early to tell what the impact would be. While 34 per cent of travel buyers saw implementing AI applications and tools in their corporate travel program as a priority.
In regards to airline New Distribution Capability and other new industry technologies, 46 per cent believe they will pose the most significant technological challenges. With a high, 71 per cent of buyers, wanting more information and education on NDC. This is clearly a concern for businesses, with 50 per cent yet to implement NDC and only 32 per cent of buyers feeling that their travel management company has a good understanding of it.
Despite some ongoing challenges, FCM Travel is confident that the industry will continue to adapt and change to meet the opportunities and innovations that will shape 2024.
For more information and support with strategic travel program planning, talk to the specialists at FCM Travel.