The number of buyers with bigger travel budgets is on the rise for the first time in four years, a study from the Business Travel Show has found.
The results of the seventh annual forecast shows that 32 per cent of buyers will have more money to spend in 2017, compared with 29 per cent last year. This follows successive annual drops since 2013.
Airline budgets will also rise for 40 per cent of buyers, the highest number for the last three years.
Volumes of corporate travel are on the up, with 48 per cent of buyers polled saying they will manage more trips this year, while only 15 per cent expect to manage fewer.
The study also found duty-of-care and security becoming a greater priority, rising to second place in buyers’ top concerns from fourth last year (see table below). And new to the list was Brexit.
When it comes to so-called ‘sharing economy’ providers, Uber appears to be making inroads into managed travel: 56 per cent of buyers said their travellers are using the taxi app more than last year, compared to 17 per cent for Airbnb.
Top 20 issues facing buyers in 2017 (plus historical data)
| 2016/2017 | 2015/2016 | 2014/2015 | 2013/2014 |
1. | Cutting costs while maintaining quality | Cutting costs while maintaining quality | Airline pricing – increases, lack of transparency and negotiation concerns | NDC |
2. | Increased focus on duty of care and security | Increasing compliance | Controlling costs and managing spend | Travel management 2.0 |
3. | Rising airfares | GDS content | Enforcing compliance | Data |
4. | Brexit | Risk management vs costs savings | Increased hotel rates | Sustainability |
5. | Enforcing compliance | Increasing hotel rates | Traveller safety | Meetings management |
6. | Price variations between booking channels | Airline pricing | Cost savings | Mobile apps |
7. | Integrating one TMC across the whole business | Supplier negotiations | Ancillary fees | Technological developments |
8. | Hotel rate management | Securing value for money | The role of the TMC | Free Wi-Fi in hotels and on airlines |
9. | Keeping costs down and compliance up | Online adoption/booking | Online adoption | CSR |
10. | Data and how to use it | Mobile apps | Cost increases | Terrorism |
11. | Traveller tracking | Data and how to use it | Balancing traveller needs while staying within budget | Gamification |
12. | Supplier consolidation | Russia | Online vs TMC pricing | Relaxation of policy |
13. | Integrating direct booking | Changing traveller profiles | Sustainability | Airline bankruptcy |
14. | Traveller happiness | Global purchasing responsibility | GDS content | Integration of social and travel tools |
15. | Airline pricing structures – ancillary fees vs unbundling | Cost increases | Supplier consolidation | Ancillary fees |
16. | Traveller choice | Supplier consolidation | Mobile technology & solutions | Airline consolidation |
17. | Airline distribution inc. NDC | NDC | Airline consolidation | Risk management |
18. | Last minute v advance bookings | Discovering new destinations | Availability and variety of low cost leisure tools | Virtual meetings |
19. | Stakeholder management | Last minute bookings | The move towards traveller management | Fuel increases |
20. | Train travel | Stakeholder management | Stakeholder management | Less reliance on TMCs |
Read the preview of the Business Travel Show in the latest issue of BBT.