Traveler safety revealed as the top priority for business travelers, while rising travel costs serve as the biggest pain point, according to new report analyzing the small and midsize enterprise (SME) travel industry
Corporate Traveler, the flagship SME corporate travel division of Flight Centre Travel Group, and the Global Business Travel Association (GBTA), the world’s premier business travel trade organization, announce the release of a new joint research report which offers a detailed look into the key trends, insights, and behaviors that are shaping the small and midsize enterprise (SME) business travel market in the United States.
The in-depth study features findings from a survey that includes responses from nearly 300 business travelers from U.S.-based SMEs across the country, providing a thorough representation of the current state of the industry. The survey revealed the top priorities and biggest challenges for companies when it comes to business travel, the most important factors when evaluating a travel management company (TMC), and more.
According to the results, it was determined that traveler safety (40%) is the number one priority for companies, followed by cost savings (19%), and traveler experience and technology integration (each at 11%). Policy compliance (8%), along with reporting and sustainability (each at 5%), rounded out the top five. A deeper analysis even showed that traveler safety was listed in the top three by 69% of respondents, while cost savings was listed in the top three by 57% of respondents, further indicating the importance of these priorities in today’s changing business travel environment.
“At Corporate Traveler, we always pride ourselves on our ability to keep our finger on the pulse of the industry, which helps us best meet the needs of our clients,” said John Van den Heuvel, President, Corporate Traveler USA. “So, as the business travel world continues to evolve, we’re pleased to have worked with GBTA to develop this report, which reflects the true voice of today’s business traveler and the SME community across the country.”
“Our personalized approach and commitment to innovation truly sets us apart, allowing us to devise tailored travel management solutions designed to meet a company’s objectives, whether it’s placing a greater emphasis on traveler safety, identifying opportunities for cost savings, or strategically enhancing our technology offerings,” Van den Heuvel added. “We believe the findings outlined in the survey will now provide companies with similar actionable insights to successfully navigate the shifts in the industry, while also enabling them to flourish and drive their business forward.”
Suzanne Neufang, CEO for GBTA said, “This research conducted by GBTA and Corporate Traveler addresses the increasing challenges faced by SMEs in managing their business travel programs. Underscoring the importance of traveler safety, cost savings and increased efficiencies, these insights will help inform companies as they seek innovative strategies to navigate these complexities.”
The survey revealed that the biggest pain point, by a significant margin, is the cost of travel (63%) as companies deal with rising travel costs. Other issues associated with business travel include understanding the ROI and measuring success (38%), employee traveler tracking (37%), manual processes (37%), and the lack of data/reporting (35%).
Some other highlights of the survey include:
-
- Since spending on business travel remains a significant cost for SMEs, companies are testing out various strategies that can help achieve cost savings. Two-thirds of companies are implementing budget-friendly options (65%), while more than half of companies are working with travel management solutions (52%). Additional strategies include revising and reinforcing policy adherence (43%), negotiating lower vendor contracts (42%), or reducing employee travel (35%).
-
- Despite this increased focus on cost savings, there are still internal and external factors that companies encounter that make implementing these budget-friendly options a bit more difficult. Travel to expensive/high-cost areas (57%) is the most common obstacle, followed by employee behavior (45%), as some employees prioritize comfort or convenience over savings when on the road. Add-ons and extra fees (40%), such as checked bags, priority boarding, or hotel room services, often pose a challenge as well.
-
- With the continued shift in the way travel is being approached, the majority of survey respondents indicate that their company is currently evaluating a TMC (71%), with the availability of travel (86%) being the most important factor when making this decision, followed by customer service (84%) and value/cost savings (82%). The biggest challenge for companies when evaluating a TMC is balancing fees and value (67%), followed by the issue in demonstrating ROI (50%), and identifying the right evaluation criteria (45%).
For more information and to view the report, please visit here.
*The survey was conducted online between June 17, 2024 to June 20, 2024. The target respondents were business travel decision-makers at U.S.-based SMEs across the country, including administrative and executive assistants, HR personnel, C-suite executives, and company travel managers. All regions of the U.S. were represented in the survey. A random sample of 299 responses were obtained.
