Business travel is finally making a comeback, providing hoteliers with renewed opportunities to capture a crucial market segment.
NB: This is an article from Sabre
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As companies resume in-person meetings and conferences, hotels that can effectively market to business travelers will benefit significantly. This blog outlines strategies to help your hotel tap into the resurging demand for business travel.
The resurgence of business travel and what it means for hoteliers
Business travel spending is on a sharp upward trajectory, with forecasts suggesting it will reach $1.4 trillion in 2024 and climb to nearly $1.8 trillion by 2027. Key markets like China, the USA, Germany, Japan, and the United Kingdom are driving this growth, with impressive annual increases in business travel spend – 69% in Japan alone. This resurgence marks a critical opportunity for hoteliers to reclaim lost market share and forge stronger relationships with corporate clients.
Additionally, the rise of ‘bleisure’ (business + leisure) travel, especially among young professionals, has changed the game. Many travelers are now looking to extend their business trips into weekend getaways, driven by affordability and the blending of work and leisure. This trend highlights the need for hotels to offer flexible packages that cater to both work and play.
Secondary markets are also seeing significant growth, with the global business travel market expected to soar from $711.1 billion in 2021 to $2,997.2 billion by 2030, at a compound annual growth rate of 13.3%. Emerging markets in Asia and Africa are propelling this expansion, prompting hotels and companies to adapt their travel programs to meet the needs of these new regions. With domestic business travel spending already at 77% of pre-pandemic levels, now is the time for hoteliers to seize this opportunity and stand out.
Enhancing visibility through corporate partnerships and consortia
Corporate bookings are a significant revenue stream for hotels, but gaining visibility with travel agents and corporate buyers can be challenging. This is where Consortia Services come into play. By partnering with consortia, hotels can increase their visibility in key markets, gaining access to a broader network of travel agents who book corporate travel. These partnerships not only elevate a hotel’s profile but also offer exclusive rate opportunities that attract business travelers.
Staying ahead of the competition requires more than just being visible of Global Distribution Systems (GDS). While GDS is influential, it’s not sufficient alone to capture the competitive edge. Consortia partnerships help hotels position themselves effectively by providing the support needed to connect with corporate clients directly, offering them tailored solutions that other channels might miss. For hoteliers, aligning with consortia and corporate travel networks is a strategic move to boost occupancy and secure steady business bookings.
