Monday, 13 January 2020

THE NUMBER OF BUYERS FORECASTING BIGGER BUSINESS TRAVEL BUDGETS AT FIVE YEAR HIGH



The number of corporate travel buyers forecasting bigger budgets for the year ahead is at a five-year high, according to annual research conducted by Business Travel Show. 41% of buyers polled said they would have more money to spend on travel in 2020, compared to 33% last year.

The volume of buyers predicting an increase in travel costs was also at a record high (49% compared to 43% in 2018) and there was significant uplift in those expecting to manage more trips (52% compared to 33%).

114 European buyers took part in this year’s poll, 56% from the UK, 35% from continental Europe and 9% from the rest of the world. 

Other highlights from the survey:

  • 45% of buyers polled will have more to spend on accommodation in 2020 – an increase of 16% on 2019
  • 65% are expecting to book more room nights, compared to 40% a year ago
  • 41% will have bigger airline budgets, rising 10% over last year 

Last year’s survey showed a downturn in numbers across the board – with fewer buyers predicting airline, accommodation and overall budget increases. This was unsurprising with Brexit on the horizon and businesses holding back on both decision-making and spending. These figures appear to show a return to form and are back on par (if not slightly above) 2018’s statistics, which is very encouraging news for the industry.
How budgets compare year on year over five years:


20vs19
19vs18
18vs17
17vs16
16v15
Budgets





Bigger
41%
33%
40%
32%
29%
Smaller
19%
15%
12%
21%

The same
40%
53%
48%
47%







Travel costs





Increase
48%
43%
47%


Decrease
17%
10%
13%


The same
35%
47%
40%








Number of trips managed





More
52%
33%
45%
48%
44%
Fewer
17%
14%
15%
37%
37%
The same
31%
53%
40%
15%
19%






Airline budgets





Bigger
41%
31%
49%
40%
33%
Smaller
18%
16%
11%
15%
24%
The same
41%
52%
40%
45%
43%






Accommodation budgets





Bigger
46%
29%
49%
32%
38%
Smaller
18%
14%
24%
14%
21%
The same
36%
56%
31%
54%
41%






Room nights





More
65%
40%
45%


Fewer
11%
10%
24%


About the same  
24%
50%
31%






































This blog post was written by David Chapple, UK Portfolio Director of Northstar Travel Group, which runs the Business Travel Show taking place 26-27 February 2020 at Olympia London. Visitors can register for a free pass to attend at www.businesstravelshow.com/register 

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