Advantage reveals latest business travel booking trends among independent travel agent members
The Advantage Travel Partnership, Great Britain's largest consortium of independent travel agents, has released its latest Business Impact Survey revealing the latest business travel booking trends among its members.
The findings emphasise the strong performance of the corporate travel sector following the chaos caused by the COVID-19 pandemic over the past three years.
Increase in new customers with rise from 'unmanaged' corporate travel teams
Notably, four in five (80%) of The Advantage Travel Partnership's business travel members surveyed have seen an increase in new customers, with over two-thirds (68%) receiving approaches from previously 'unmanaged' corporate travel teams.
Of those surveyed, over a third believe this increase in new customers booking through a TMC is due to the security and protection provided against late changes or cancellations. Almost another third believe it is due to the simplicity of booking business travel through a TMC.
Corporate travel teams are 'increasingly opting for the support of a TMC' when booking trips
Both new and existing clients are "increasingly opting for the support of a TMC when booking trips, using their expert knowledge and experience to simplify the complexities of business travel," reports
Guy Snelgar, Global Business Travel Director of The Advantage Travel Partnership.
"TMCs and individual travel agents are able to offer trusted connections and will be able to look after travellers if and when travel plans are disrupted," he adds.
Strong pent-up demand for business travel…
Alongside new clients, the pent-up demand for business travel following the global travel restrictions of the pandemic is also evident amongst existing clients of Advantage's members.
Four in five (80%) are seeing increases in travel from existing clients, while almost two-thirds (65%) are seeing an increase in the percentage of a company's travel spend they receive.
The increase in business travel is also reflected financially, with members seeing significant increases when compared to pre-pandemic levels of 2019.
More than two thirds (68%) of members reported higher turnover and three-in-five (61%) are seeing higher transaction levels, according to the survey.
… but cost-of-living crisis and global inflation continues to affect the industry
Whilst Advantage members report strong figures, the cost-of-living crisis and global inflation continues to affect the industry.
Almost all members (97%) report an increase in the cost of business travel flights and a similar level (94%) are seeing an increase in the cost of business travel hotel stays. In fact, one-in-six respondents said they are seeing a 50% increase in airfares.
Business travel industry shows 'resilience'
The business travel industry "has shown its resilience and continues to bounce back following the difficulties faced throughout the pandemic, alongside ongoing strikes and global inflation," notes Mr Snelgar.
Despite the rising cost of living, he says Advantage's members are "seeing an increase in expenditure on corporate travel, new business and long-haul travel," which are "positive signs for our economy".
2023 is seeing the return of long-haul travel
The Business Impact Survey has also indicated the return of long-haul business travel with more than four-in-five (84%) of Advantage members seeing an up-turn in the number of long-haul trips booked.
The most popular business travel destinations, where the majority of members reported increases, were the USA with 80% seeing an increase and European destinations, with 68% of members seeing an increase in travellers.
Following the easing of China's strict COVID-19 travel restrictions for inbound foreign travellers, over half of members surveyed reported an increase in business travel bookings to China. Meanwhile, approaching half (42%) of members in the survey said domestic travel levels have increased.
Sustainability remains a top priority
Despite the use of technology to connect people around the world, the demand for business travel and to connect in-person, "is clearly there," says Mr Snelgar and he expect it to continue and "exceed the pre-pandemic levels of 2019" throughout this year.
Still, sustainability remains a top priority within the business travel industry as corporations and travellers look to reduce carbon emissions and the impact of their trip. Many business travellers are opting for rail travel as an alternative to flying and almost a third of those surveyed said they are seeing an increase in requests for train travel.