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Insight of the Day: International business travel declining amid inflation, report finds

Findings:

  • International business travel declined by nearly 20% in Q1 2024 compared to the same period in 2023.

  • Domestic bookings now account for 62% of all corporate travel, up from 52% in Q1 2023.

  • Average hotel room rates increased by 8% globally between Q1 2023 and Q1 2024.

  • The average cost of a business trip increased by 7% from Q1 2023 to Q1 2024.

Key Takeaway:

International business travel is declining due to persistent inflationary pressures and economic uncertainty. Companies are opting for domestic travel and condensing trips to manage costs.

Trend:

The trend is a shift towards domestic travel and shorter trips in response to rising costs and economic concerns.

Conclusions:

The decline in international business travel and the focus on cost-saving measures indicate that companies are cautious about spending in the current economic climate. Despite this, domestic travel is growing, particularly in Asia and Europe.

Implications for Brands:

  • Hotel industry:  Hotels should focus on attracting domestic business travelers with competitive pricing and packages tailored to shorter stays.

  • Travel management companies:  Offer solutions that help companies optimize travel spend and consolidate trips.

  • Airlines: Consider adjusting routes and pricing to cater to the growing demand for domestic travel.

  • Technology providers: Develop tools that help companies track and manage travel expenses more effectively.

  • Destinations: Promote domestic tourism and highlight the benefits of local business travel to attract corporate clients.

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