Simon Ferguson, managing director, Northern Europe at Travelport
The trends that influence business today are fast evolving and unpredictable. A recent joint report we conducted with the World Travel and Tourism Council (WTTC) reveals that business travel accounts for $1.3tr of global travel spending annually - one of five dollars of the overall amount. As globalisation continues, new markets open up and emerging economies grow, it is set to continue rising at 3.7% per annum over the next 10 years.
Developed countries such as the USA, China, UK, Germany and Japan not only have the largest business travel spend, but are also those with both the largest economies and largest travel and tourism economies.
Business travel can also be a catalyst to the growth of the wider travel and tourism sector in developing and emerging markets as it helps create infrastructure and jobs for the transportation, accommodation and other services used by future leisure travellers.
How technology is successfully transforming business travel
Business people still place a high value in face-to-face meetings for both building and maintaining long-term relationships and for sealing business deals. So, exploiting advances in technology to fuel the growth of business travel and improve business travel experiences is increasingly important for governments, corporates and travel companies alike.
Whether travelling for business, leisure or a combination of both, today's traveller expects an experience that is immediate, seamless, personal, reliable and engaging. A constant flow of new technologies such as wearables, mobile payments, virtual reality, augmented reality, bots and artificial intelligence (AI), are all helping create an "experience culture" that did not exist five years ago. These advances not only enhance day-to-day lives, but have also opened a myriad of new opportunities for travel brands to support, engage and empower the ever-connected digital road warrior.
Mobile, personalisation and changing traveller expectations
Studies from Atmosphere Research Group15 show that 90% of all US travellers now have a smartphone with this percentage set to rise to 93% by the end of 2017. In the UK, this figure is currently around 80% with smartphone ownership expected to reach 83% in the next year. Studies from GFK report that the smartphone market still has significant potential for growth in developing regions such as the Middle East/Africa and Emerging Asia as they are yet to mature.
Our research has found travellers primarily look to mobile technology to "improve the efficiency of their travel experience". They also appreciate details on flight connections and any mobile alerts and notifications that alleviate travel stress, make their journey smoother or provide relevant offers.
Duty of care in a more insecure world
International travel and risk go hand in hand but, as the real or perceived dangers get closer to home and harder to predict, the risks of doing business rise and safety and security is increasingly a priority.
Research shows that 96% of employers have security procedures in place to deal with a major incident, and traveller tracking has become a key issue.
There are several factors influencing the growth and evolving nature of business travel globally because of changing technology advances and changing traveller expectations, but there is no doubt that travel companies and corporates should continue to embrace the transformational power of mobile as an opportunity. As technology advances continue to maximise the opportunities for business travel growth, the corporate travel arena can reap the benefits to improve business travel and transform it into a more personalised, seamless, smooth and hassle-free experience.