Corporate Traveller connects the dots between factors like economic challenges and demographic shifts and their effect on business travel spend trends. Discover what this means for the future of business travel in South Africa and beyond and how business travel managers need to adapt.
Thanks to the wild ride of the last three years – courtesy of the pandemic and a rollercoaster of economic factors such as loadshedding and rising inflation – South African business travellers have had to face unprecedented challenges head-on. But, these travellers have proven themselves as masters of adaptation, reshaping business travel in surprising ways, new research into business travel spend trends from Corporate Traveller shows.
Travel data shows that the number of travel bookings is down slightly in the first six months of 2023 when compared to 2019 levels. However, the number of room nights is significantly up and has, in fact, increased by 88%. The message is clear – one of the biggest trends among South African business travellers is that they're hitting the road less often but spending more.
“This trend indicates that business travellers are opting to stay longer at their destinations and planning more meetings during their business trips,” explains Bonnie Smith, GM of Corporate Traveller. "We're seeing business travellers clustering meetings to achieve more on each trip.”
Interestingly, despite the decrease in bookings, the Corporate Traveller research shows a significant increase in business travel spend trends in the first six months of 2023 as compared to the same period in 2019.
These increases have been observed both in global and local accommodation – international travel hasn’t escaped the hit. Other travel components have also seen a substantial rise in spend: the transactional value for domestic flights has increased by 151%, international flights by 112%, domestic car rentals by 62%, and international car rentals by 224%.
The reasons for these increases in business travel spending, while bookings remain constrained, are varied. It seems that business travellers today are leaning towards more premium services. Instead of booking economy flights or standard hotel rooms, they may be choosing business class flights or luxury accommodations. Of course, increased prices also play a significant role in the surge in travel spend. Prices for accommodation, flights and car rental are up across the line after the pandemic.
To give some shape to emerging trends highlighted by the data and how global factors and economic shifts have influenced business travel, Corporate Traveller has released a new white paper, "Economic Jet Lag: Understanding the Impact of SA’s Economy on Business Travel".
Smith shares some of the key business travel trends covered in the report:
Smith is optimistic for the future and says she sees a potential resurgence in 2024 as the economy improves and businesses regain confidence. However, this doesn't mean it's ‘business travel as usual.' The travel spend trends we see emerging will keep both business travellers and travel managers on their feet.
"Now is the perfect moment to take action, rethink the way we do things, and lead the way into the future. As the world of business travel keeps evolving, companies need to be flexible, creative, and attentive to the preferences of the upcoming generation of travellers."