NEW REPORT HIGHLIGHTS KEY TRENDS FROM THE RETURN OF GLOBAL BUSINESS TRAVEL
The return of business travel around the world has led to a series of common trends and patterns, which have been outlined in a new report from consultant firm VettaFi.
The recovery of business travel has had big implications for the MICE industry, as well as for the travel and tourism industry itself. But what are the takeaways that have been observed as business travel resumes to normal post-Covid-19? A new report from VettaFi has identified a variety of key trends that businesses should be aware of in 2022 and beyond.
Virtual meetings to compliment in-person events
A number of analysts and investors held the belief that business travel would not resume to pre-pandemic levels, due to the widespread adoption of video conferencing. That said, the recent report from VettFi appears to disprove this.
“After what was almost two years of video meetings, employees realised that meeting online cannot completely replace all aspects of in-person meetings,” the report notes.
Video conferencing remains prevalent in many work environments around the world. However, the report notes that video meetings will likely complement or supplement in-person meetings or events, ahead of industries’ adoption of new technologies such as the metaverse.
How hotels can benefit from adjustments to business travel
The report cites Marriott and Hilton as two hotel companies that have recovered within the business travel sector. For Marriott, pre-pandemic demand was 60% business travel and 40% leisure. Now, that demand is reported to be 53% business and 46% leisure. Meanwhile, Hilton’s business revenue per available room is at 2019 levels, with large corporate business being a key driver.
More remote working has meant that there is now a growing blend of business and leisure travel, with travellers spending time for vacation outside of their work trip. The report states that “this could actually help boost profits as business travel is typically booked in shorter windows at higher rates, and customers are less price sensitive when it comes to business versus leisure.”