We are almost halfway 2018, and as predicted, it has been to be a dynamic year in the corporate travel world. We did some research about recent trends in business travel and we would like to share those with you.
We normally distinguish between leisure travel and business travel. A big upcoming trend is the millennial age group who is traveling for business. A whole new concept of traveling is emerging, called: bleisure travel. Millennials are now the most frequent business travelers. They often go on a business trip and decide to extend their trip by booking extra nights paid on their own dime. For example, one may go on a business trip to London from Wednesday to Friday where their company is paying for the flight and two nights in a hotel. Then the millennium traveler will book two additional nights for the weekend, and arrange their flight accordingly to have some leisure time for themselves.
Increasing Hotel Rates
Due to improved economic performance, the demand for travel is greater. Hotel room rates are expected to have a low or moderate increase globally this year. Europe is seeing the steepest increases. Hotels become more sophisticated with yield management techniques, which can be lead into a problem for both travel managers and business travelers. Furthermore, hotels will look to drive profitability through increased use of ancillary fees, stricter cancellation policies and a continued focus on direct bookings.
Air Travel Rates
Fares are expected to rise everywhere. But factors like overcapacity on some routes, the expansion by low-cost carriers and low oil prices should keep price increases in check. Although only modest fare increases are expected in air travel, airlines will continue to drive revenues through the expanded use of ancillary fees.
Car Rental Rates
Another notable trend is that rental car rates should rise slightly as a result of a strengthening global economy. Especially car rental in Canada and the USA are expected to increase for the first time in years.
Rail as an alternative
The quality of rail travel continues to improve in Europe and Asia. Traveling by train is an appropriate and attractive alternative to short-haul air travel. Research shows that 80% of travelers prefer traveling by rail on trips of 2.5 hours or less.
Online Booking and Self Booking Travel Itinerary
The demand of travelers booking their own itinerary is an increasing trend. (Did you know at The Frenchway Travel you have the possibility and freedom to make your own bookings? Besides offering a personal travel agent, we also offer you the opportunity to book your flights, hotels, and cars via an online portal.)
Since it’s already June, we are wondering if you noticed one of those trends in the travel industry during the previous months. Share your thoughts and experiences with us in the comments below!