Climate change, cybersecurity and geopolitics, determining factors for Business Travel in 2024

Climate change, cybersecurity, political polarization, geostrategic movements, health risks and crime are among the variables most likely to affect business travel in 2024, according to the latest Travel Market Report by BCD Travel's global Research and Intelligence team.

The BCD Travel report notes that in 2023 the growthin corporate travel was higher than expected, despite high inflation and the monetary policies put in place by governments to curb price hikes.

In contrast, for 2024 an increase in corporate travel is expected to be more moderate, due to a series of conditions such as climate change, climate change, the economic slowdown and the economic slowdown;tic change, cybersecurity, political polarization, geostrategic movements, health risks and crime.

The study's authors stress that “travel managers must monitor risks and keep abreast of any changes in legislation that could directly affect their travelers”.

AÉRATE CHANGE

Air transport is not recovering consistently around the world. In some cases, demand or capacity has not returned to pre-pandemic levels. In others, the sharpprice rise may be in its final phase in the face of “more normal” market conditions,

Worldwide, average ticket prices are expected to decline by 0.8% in 2024. regional fareswill fall 0.9%and intercontinental fareswill drop 0.5%. By category, prices in the business class may fall by around 1.2%, and the most economic classes by around 0.8%.

In Asia, Europe, Latin America and the Southwest Pacific, declines of 2% are expected. Only average rates are likely to be higher in Asia and North America, but the increase in PTAs in these two markets is estimated to be less than 1%.

"Over the last two years, aére rates have increased significantlyJorge Cruz, executive vice president of Global Sales and Marketing at BCD—. As a result, savings have become almost impossible for travel managers. That's why we advise companies to review their travel policies”.

HOTEL AVAILABILITY

In contrast to last year, the BCD Travel study predicts that hotel prices will rise by 6.8% on average in 2024. Even as the pace of recovery shows signs of slowing, demandwill continue to outstrip available supply in many markets.

While there are numerous projects underway to increase the number of rooms, it will take time to get them up and running, and development will vary greatly by market. In addition, hoteliers' concerns about occupancy have given way to a priority on increasing revenue per available room.

Rather than trying to fill every room, hotels seem more willing to accept lower occupancy, limiting availability and charging higher rates. With inflation so high in many countries, this change has the added benefit of reducing operating costs.

As Cruz reminds, “business travelers are finding it increasingly difficult to find available rooms at preferred rates. It is important for travel managers to negotiate other issues as well, such as availability. Otherwise, they will end up paying market rates, which will increase the expense of their hotel programs next year.

SUSTAINABILITY

Two-thirds of travel buyers consider sustainability in business travel to be “very” or “extremely important”. Nearly half have specific objectives in this regard.

The EU Corporate Sustainability Reporting Directive will come into force in 2024, extending existing reporting requirements. With the U.K., Australia and possibly the U.S. following suit, travel providers and their corporate clients will have to make a greater effort to be transparent about their emissions,”, Cruz concludes. Descargar Documento