Table of Contents
Executive Summary
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- Overview
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- Figure 1: Business traveler segments, November 2018
- The issues
- Familiarity with sharing economy gives companies travel options
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- Figure 2: Usage of ridesharing and homesharing, by age group, November 2018
- Amenities should address efficiency, instead of luxury
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- Figure 3: Attitudes toward airplane/airport business amenities, November 2018
- Safety concerns mean travelers miss opportunities
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- Figure 4: Avoidance tactics to ensure safety, by gender and age group, November 2018
- The opportunities
- More business travel results in more activity
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- Figure 5: Business traveler segments and travel frequency, November 2018
- Business trips aren’t all business
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- Figure 6: Leisure activities done on business trips, by age group, November 2018
- Parents get vacation where they can get it
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- Figure 7: Behaviors and attitudes around business travel, parents vs. non-parents, November 2018
- What it means
The Market – What You Need to Know
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- The business travel market poised for small but steady growth
- Companies are swimming in cash
- Millennials are moving the market
- Rideshare loyalty expands the business travel market
- Consumer apps cater to business travelers
- Business travel will feel the hit from the shutdown
Market Size and Forecast
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- Business spending continues slow and steady growth
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- Figure 8: Total US sales and fan chart forecast of business travel, at current prices, 2011-21
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- Figure 9: Total US business travel spending, at current prices, 2013-23
Market Factors
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- Strong GDP enables increased business travel
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- Figure 10: GDP change from previous period, Q1 2007-Q3 2018
- Record corporate profits
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- Figure 11: Corporate profits after tax, seasonally adjusted annual rate, in billions, January 2007 – July 2018
- Strength of the dollar
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- Figure 12: Trade Weighted U.S. Dollar Index: Broad, Quarterly, Not Seasonally Adjusted
- Trade wars cast economy into question
- The longest shutdown will have the longest tail
Market Perspective
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- Millennials preferences dictate travel
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- Figure 13: US workforce participation by generation, 2017
- Figure 14: Attitudes toward travel (net agree), by age, February 2018
- Rideshare companies introduce loyalty
- Hotel occupancy and revenue continue to stay high
- SpotHero expands into business travel
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- Figure 15: Hertz email, November 2018
Key Trends – What You Need to Know
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- Millennials are on the go, bleisure is here to stay
- Wellness hits business travel just in time
- Travelers want seamless convenience
- Women are getting the cold shoulder at work
- Labor issues can turn away conscious travelers
- Airbnb testing ownership
- Rollout of 5G will bring changes
What’s Happening?
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- Business travel is popular
- Wellness extends into business travel
- Seamlessness and safety are top priorities for business travel providers
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- Figure 16: Uber email “Be anyone. Go anywhere,” October 2018
What’s Struggling?
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- Fear may jeopardize women’s careers and travel
- Hotel strikes can drive away businesses and travelers
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- Figure 17: Areas of focus for companies, May 2018
- Frequent business travel is stressful
What’s Next?
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- Airbnb testing property management
- Startup solutions for scheduling problems
- 5G could temper in-person meetings, or bring new possibilities
The Consumer – What You Need to Know
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- Business traveler psychographics are more important than demographics
- Three quarters of business travelers are eager travelers
- Sharing economy has better long-term outlook than short-term
- Personal enrichment gaining on professional advancement
- Airlines and hotels should help get the job done
- Attractions are attractive
- Parents treat business trips as personal mini-vacations
- Women and young professionals guard by distance
- Experience breeds security
The Business Traveler
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- Business travelers tend to be young men
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- Figure 18: Business traveler demographics, November 2018
- Most business travelers take fewer than five trips per year
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- Figure 19: Frequency of business trips, November 2018
- Business traveler segmentation
- Factors
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- Figure 20: Business traveler segments and travel frequency, November 2018
- Experienced & Experiential (E&Es) (42%)
- Intense Business Travelers (IBTs) (33%)
- Reluctant But Dutiful (RBDs) (25%)
- Demographically, RBDs tend to be women and adults without kids.
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- Figure 21: Attitudes toward business travel, by business traveler segments, November 2018
Modes of Business Travel
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- A “business trip” tends to involve a flight and hotel
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- Figure 22: Travel modes used for business travel, November 2018
- Overnight domestic trips are most common
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- Figure 23: Types of business trips taken, November 2018
- Sharing won’t take over traditional outlets in the near term…
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- Figure 24: Usage of travel services, by trip purpose, November 2018
- …but young professionals have been taught how to share
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- Figure 25: Usage of ridesharing and homesharing, by age group, November 2018
The Purpose of Business Travel
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- Finding the sweet spot between efficient, accommodating, and experiential
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- Figure 26: Goals of business travel, November 2018
- Business travel preferences, by traveler segment
- Experienced & Experiential travelers are focused but easygoing
- Intense Business Travelers put the pedal to the metal
- Reluctant But Dutiful travelers get the job done and get out
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- Figure 27: Goals of business travel, by cluster segment, November 2018
Business Travel Amenities
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- Business travelers like short, efficient trips
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- Figure 28: Attitudes towards business travel, November 2018
- Business flights are about efficiency over comfort
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- Figure 29: TURF analysis – Opinons of flight amenities, November 2018
- Hotels are a place to work, then work out
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- Figure 30: TURF analysis – Opinons of hotel amenities, November 2018
- Amenity preferences by segment
- Experienced & Experientials enjoy casual leisure
- Intense Business Travelers prefer niceties to speed
- Reluctant But Dutifuls hit the gym
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- Figure 31: Useful travel amenities, by cluster segment, November 2018
Experiential Business Travel
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- Restaurants and attractions are most popular for business travelers
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- Figure 32: Activities done on business trips, November 2018
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- Figure 33: Types of restaurant visited on business trips, by age group, November 2018
- Young travelers to unwind
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- Figure 34: Spa visitation on business trips, by age and gender, November 2018
- Attractions attract everyone
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- Figure 35: Leisure activities done on business trips, by age group, November 2018
- Hotel bars losing share to local bars
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- Figure 36: types of bars visited on business trips, by age group and gender, November 2018
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- Figure 37: TURF analysis AFH drink interest, January 2018
- Business trips are a brief, welcome respite from parenting
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- Figure 38: Behavors and attitudes around business travel, parents vs. non-parents, November 2018
- Business travel experiences by segment
- Experienced & Experientials can be moved around
- Intense Business Travelers want it all
- Reluctant But Dutifuls like a slower pace
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- Figure 39: Leisure activities done on business trips, by cluster segment, November 2018
Safety
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- Safety is up to the traveler
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- Figure 40: Attitudes and practices around business travel safety, November 2018
- Women guard themselves through avoidance
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- Figure 41: Safety precautions taken on business trips, by gender, November 2018
- Avoidance limits the experience of young professionals
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- Figure 42: Avoidance tactics to ensure safety, by age group, November 2018
- More travel means more prep
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- Figure 43: Safety precautions taken for business travel, by number of trips per year, November 2018
- Safety precautions by segment
- Experienced & Experientials take reasonable measures
- Intense Business Travelers are the most safety-conscious
- Reluctant But Dutifuls are the most avoidant, but also the least prepared
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- Figure 44: Safety precautions taken on business trips, by cluster segments, November 2018
Appendix – Data Sources and Abbreviations
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- Data sources
- Fan chart forecast
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Market
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- Figure 45: Total US business travel spending, at current prices, 2013-23
- Figure 46: Total domestic business travel expenditures and forecast, at inflation-adjusted prices, 2013-23
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