Global Business Travel Group Inc.
Global Business Travel Group Inc.
07/29/2024 | Press release | Distributed by Public on 07/29/2024 04:16
Exploring Hot Trends: The Strength of Corporate...
Corporate travel is booming! According to the Global Business Travel Association, global spending on business travel is expected to reach $1.5 trillion for the first time this year.1
In many ways, this uptick is unsurprising. Particularly in the finance sector, face-to-face interactions are crucial for developing client relationships, exploring new business opportunities, and facilitating training and development.
The personal approach has been known to bring better results compared to virtual meetings or emails. Whether it's negotiating deals, attending industry conferences, or participating in hands-on training sessions, being present in person can be more effective. For these reasons, business travel isn't just a work perk or nice-to-have. Instead, it's a key component of any successful business strategy, especially for financial institutions (FIs).
But despite the popularity (and importance) of business travel, the current environment isn't without its challenges: namely, rising travel expenses. After all, as business travel is surging in popularity, hotels and airlines are experiencing higher occupancy rates. This rise in demand is inevitably leading to higher prices. But as well as the surging popularity, hotels are contending with labor costs and supply chain issues - all things that are driving up prices even further.2
For FIs, the increasing costs may raise concerns. Consequently, FIs are striving to find the best way to align new business travel while minimizing costs.
Rates, rates, rates
Let's take a look at some of the detail. According to Hotel Monitor 2024 - a forecast compiled by the American Express Global Business Travel (Amex GBT) consulting team - supply continues to lag demand in many key destinations. As a result, travel expenses are likely to rise in the year ahead - even if they're rising at a slightly slower pace than in previous years.3
From the Americas to Asia and Europe, the issue is global: hotel rates are expected to rise in the below cities that are hot for FI travel:
- Buenos Aires by up to 17.5%
- Mumbai by up to 15%
- Cairo by up to 14.6%
- Bogota by up to 14.1%
- Chicago by up to 12.6%
- Paris by up to 11%
- San Jose (California) by up to 10.2%
- San Francisco (California) by up to 6.2%
It seems no matter which region you're heading, travel expenses are on the up.4
For FIs looking to visit these cities, such a steep rise in hotel travel expenses may prove a barrier, especially when you consider the high price of flights too.5
The role of the managed travel solution
To manage costs, many FIs are opting for a travel agency or travel management solution such as Amex GBT Ovation (Ovation). Often crafted in partnership with a travel management solution, a travel program lays down the parameters of a FI's travel activities. Designed to support in making business travel as efficient and cost-effective as they can be, travel programs deal with everything from travel expenses to compliance issues, safety protocols, reporting, and analysis. A well-executed travel program streamlines the booking process and makes sure money is well spent, wherever travelers are going.
To help drive savings, Ovation™ partners with over 600 premium hotels as part of our bespoke Preferred Hotel Partners Program. Through this program, we offer discounts on travel expenses ranging from 10-50% below the lowest published corporate rate - so executives can experience luxury at a lower cost.6 And our Preferred Extras™ air savings program offers similar cost-saving opportunities, with discounts on major domestic routes and many international routes too.
But we don't just offer cost savings; we offer access to exclusive perks such as rush visa services, VIP seat check, concierge services, and more. Your designated travel consultants and account manager will be at hand to answer your questions, 24/7. Whether you need to arrange chauffeur-driven transportation, require passport renewal assistance, or need help clearing waitlists for flights and hotels, your designated Ovation travel consultant will be here to help.
We know how to navigate the world of business travel. Offering personalized and premium support to FIs, we help executives travel well, wherever they are.
Want to find out more?
Get in touch.
1 https://www.amexglobalbusinesstravel.com/the-atlas/hotel-rates-by-city/.
3 https://www.amexglobalbusinesstravel.com/the-atlas/hotel-rates-by-city/.
4 https://www.amexglobalbusinesstravel.com/the-atlas/hotel-rates-by-city/.
5 https://experience.amexglobalbusinesstravel.com/air-monitor/2024/.