Business travel volumes in the first half of 2024 have increased 17.3 per cent year on year, however average transaction value has dropped slightly and continues to be on a downward trajectory, according to The Advantage Travel Partnership’s latest Global Business Travel Review.
Working in partnership with travel data and reporting specialists, Travelogix, the seventh edition of the report contains analysis of booking data as well as a deep dive into business travel sustainability and local market insights from travel managers across the globe.
The report examined data from 29.7 million records between January 2019 and 30 June 2024 with an aggregate value of £13.9 billion in transactional revenue.
The results show travel volumes for H1 2024 have increased 17.3 per cent compared to the same period in 2023 – outperforming the previous forecast of an expected 15.5 per cent year-on-year increase.
The report also noted that the UK election announcement in May affected June’s numbers but “did not overly impact the H1 forecast” since February, March and April outperformed the forecast and standard seasonality.
Source: Travelogix. Data based on the analysis of 29.7 million records between January 2019 and 30 June 2024, with an aggregate value of £13.9 billion in transactional revenue
Nevertheless, average transaction value has dropped by 2.63 per cent year on year, from £428.82 in H1 2023 to £417.54 in H1 2024. Average transaction values have also fallen month-on-month throughout the first six months of the year – marking the first time this downward trend has occurred since the pandemic.
The average transaction value started at £466.05 in January 2024 and fell to £364.21 in June, resulting in a lower comparable average for the year’s first quarter, according to the report. Despite a potential increase in sales for TMCs, the report warned that average revenue and yield per booking for this period “are likely lower” than the previous year.
Key drivers behind this trend, according to the report, include a reduction in business and first-class travel. Demand for business class air tickets has fallen to 15.6 per cent of bookings in H1 2024, compared to 22.6 per cent of bookings in the same period last year. First class has also dropped to 1.25 per cent (down from 2.4 per cent in 2023), while economy has increased to 78.9 per cent of bookings, up from 71.3 per cent in 2023.
The average advanced booking window has also increased to 34 days prior to travel in H1 2024, compared to 28.6 days in 2023.
Meanwhile, business trips in 2024 are 17.4 per cent shorter than they were a year ago, now averaging 5.76 days, compared to an average of 6.95 days in 2023.
Source: Travelogix. Data based on the analysis of 29.7 million records between January 2019 and 30 June 2024, with an aggregate value of £13.9 billion in transactional revenue
Commenting on the findings, Travelogix founder and CEO, Chris Lewis, said: “Whilst we have seen some interesting and unexpected trend adjustments in the first half of 2024, we have no reason to dramatically adjust the forecast we put in place for 2024 early this year.
“The expected drop-off in transactions ahead of the UK general election occurred in June rather than during Q4, as previously forecast, but this occurring in June will have less overall impact on the year than if it were to have happened during Q4 as there is more time to regain confidence and for volumes to recover.”
He added: “We expect volumes to return to normal seasonal levels post-election and deeper into the summer season before a downturn ahead of the US Presidential Election in November. As originally forecast, this will likely result in a more aggressive downturn in addition to what we usually see in November and December.”
This year’s report also included commentary on how various travel verticals are responding to climate change and the growing demand among corporates for less-carbon-intensive travel options. There’s also a seven-step guide, provided by Thrust Carbon, to help corporates create a more sustainable and ‘climate-compliant’ business.
Andrea Caulfield-Smith, managing director, global business travel at The Advantage Travel Partnership, said: “It’s so important that as an industry we work together to show dedication to purposeful travel and leverage our collective influence to inspire positive environmental change across the travel sector.”