Business travel is on a steady rebound, yet notable shifts in traveller behaviour are evident. An evolving landscape sees the modern ‘road warrior’ prioritising both health and value. This change presents hotels with unique opportunities to attract and retain business guests.
As traditional business travel resumes, a clear evolution in travel habits is influencing preparations. Many professionals now seek ways to optimise their productivity and well-being, offering savvy hotels a chance to secure repeat business by adapting their services accordingly.
Business Travel’s Partial Recovery
While business travel spending is nearing 2019’s figures, it’s still lagging due to inflation adjustments. Ticket sales for U.S. corporate travel are down by 10% compared to the same period in 2019, according to the Airlines Reporting Corp. Factors like rising costs and corporate climate goals contribute to this stunted growth.
Traveller behaviours have also evolved, contributing to an incomplete recovery. The increasing costs discourage travel spend, while corporate climate strategies enforce travel limitations. Together, these create a unique challenge for re-establishing pre-pandemic business travel levels.
Emerging Travel Patterns
Recent trends show a decrease in business trips towards the end of the year compared to pre-pandemic levels. March continues to peak for business travel, with June following suit. This shift indicates a possible trend of trip batching to maximise efficiency.
The holiday season sees reduced business travel activity, as professionals prioritise family time. Forward bookings for 2024 also suggest a persisting weakness in this period, highlighting a change in travel priorities and planning.
The Rise of Blended Travel
More business travellers are integrating leisure into their work trips to alleviate stress. This ‘blended’ travel style is reshaping industry norms.
A Skift Research survey found that 60% of business travellers extended trips for leisure recently. Hybrid work options further support this trend despite a reduction from 2022’s peak levels. Leisure-oriented hotels stand to gain by adding business-friendly amenities.
Hotels such as Ennismore are adapting by offering ergonomic workspaces in leisure settings. Properties that might otherwise miss out are exploring ways to capture this demand by providing versatile environments conducive to both business and leisure.
Demand for Extended Stays
Infrastructure and technology projects are fuelling demand for longer stays. As these projects roll out, employees on extended business assignments seek hotels capable of longer accommodations.
The disparity between demand and supply is notable, with extended-stay requirements exceeding available offerings. This growing segment is especially appealing to hotel brands that can offer full kitchens and suite-style accommodations.
Significant investment into this sector by major brands like Hilton and Marriott underscores the potential returns. New extended-stay concepts are being developed to meet this increasing demand.
Health and Safety as Priorities
Physical and mental well-being is now paramount for business travellers. A focus on health boosts productivity and reduces burnout.
Hotels are addressing these needs by providing amenities like noise-reducing kits and fitness equipment. As travellers maintain their fitness regimes, brands like Hilton and Hyatt lead by integrating facilities like Peloton equipment into their properties.
Safety remains a critical concern, with half of global business travellers having to change accommodations for security reasons. This need for safe environments is influencing corporate travel policies significantly.
Health-Oriented Hotel Strategies
The push towards accommodating healthier lifestyles is evident in hotel offerings. Enhanced sleep, diet, and fitness services attract health-conscious travellers.
IHG has introduced the Timeshifter app for managing jet lag, and Marriott is trialling zero-proof drinks for social settings. Hotels are increasingly recognising the link between customer well-being and satisfaction.
Hotels launching health-centric services could benefit from increased guest loyalty as travellers seek environments conducive to maintaining their routines.
Executive Athletes: A New Approach
A new perception of business travellers as ‘executive athletes’ is emerging. Companies are leveraging traveller well-being dashboards to optimise travel arrangements.
These dashboards provide insights into stressors affecting traveller productivity, helping organisations refine travel policies. Significant emphasis is placed on ensuring executives perform at their best while on the road.
The shifting dynamics of business travel present both challenges and opportunities for the hotel industry. With the right adaptations, hotels can capture the loyalty of modern travellers by meeting evolving expectations around health, efficiency, and value.
As these trends continue to unfold, hotels that embrace these shifts will not only meet current demand but also ensure long-term success in a rapidly changing travel landscape.