Rising hotel prices, GDS content and cutting costs while maintaining quality are among the top concerns for buyers in 2016.
According to the sixth annual Business Travel Show forecast, 2016 could be a “challenging year” for buyers with budgets increasing at a slower rate, rising prices and new distribution methods causing concern.
In the study 187 buyers were asked: What will be the biggest issue facing you as a buyer in 2016?
The infographic below highlights these concerns:
It found cutting costs was the top concern replacing last year’s number one airline pricing, which has dropped to number six for 2016 – reflecting the confidence buyers have in costs coming down due to low oil prices.
Concerns over GDS content was number three showing the industry’s change in approach to distribution. This followed risk management and high accommodation rates for the fourth and fifth concern.
Buyers were also asked how they plan to change the way they manage travel this year with 53 per cent saying they will increase use of online booking. This was followed by increasing compliance (31%), changing relationships with TMCs (22%) and improved focus on traveller wellbeing and communication (9%).
Airline spend
76 per cent of buyers will have the same or more to spend on airline travel in 2016. For one third, budgets will increase the same as in 2015.
Accommodation
One third of buyers will have more to spend on accommodation 2016, around the same as last year. The use of budget hotels has dropped slightly and they now account for less than 25 per cent of bookings for three quarters of buyers.
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See the full list of concerns here
Find out more at the Business Travel Show, which takes place 24-25 February 2016 at Olympia Grand in London. Register for free at www.businesstravelshow.com.