Noticeable Increase in Business Travel Bookings
In light of data published by the Global Rescue Winter Traveler Sentiment and Safety Survey, the business travel industry is regaining its former momentum. Business travel bookings are increasing, while virtual meetings are becoming less significant.
Domestic and International Business Travel
According to the survey, the number of business travelers has increased by 37% compared to the results from nearly a year ago. Over two-thirds (68%) of respondents reported that they are engaged in both domestic and international business travel. Notably, more than one-fifth (22%) of business travelers indicated that the frequency of their work-related trips in 2024 will exceed pre-pandemic levels, doubling the 11% reported in 2023. A year ago, 35% of surveyed employees predicted that business travel would constitute "half or less than half" of pre-pandemic levels. Currently, this percentage has decreased by one-third, with only 23% of respondents stating that the number of work-related trips will be half or less than before the pandemic.
Corporate Airline Bookings
Delta Air Lines reported a 14% increase in corporate bookings in the first three months of 2024, with particularly strong sales to firms in the financial services, technology, and customer service sectors. Rival airline United Airlines also recorded a 14% rise in corporate sales revenue during the winter period. Across the aviation sector, the number of corporate passengers has not yet reached 2019 levels; however, higher ticket prices mean that airlines are achieving nearly the same revenues. For instance, on the West Coast, Alaska Airlines is benefiting from the tech sector’s business. A 22% increase in the first quarter restored Alaska's corporate ticket sales to pre-pandemic levels.
Hotels Also See Growth
It’s not just airlines seeing more business travelers. The Hyatt hotel chain reported a 6% increase in revenue from business travelers in the first quarter, along with a similar increase in group booking revenue. These trends are corroborated by eTravel, which has noted significantly higher booking numbers compared to the pre-pandemic period. According to the data, the number of hotel bookings in the first four months of this year is 15% higher than during the same period before the pandemic.
Virtual Meetings Losing Ground
More than half (56%) of respondents said that video conferences do not significantly replace business trips. In the early months of this year, we observed a marked increase in interest in business travel. Our local market data confirm the positive trends seen abroad.
We anticipate further growth in demand for business travel in the coming quarters and years, alongside increased economic activity. We are convinced that virtual meetings cannot replace physical, in-person ones. Online interactions cannot build business relationships as effectively as face-to-face meetings, as most of our clients have also realized - said Andrzej Wierzba, CEO and major shareholder of eTravel S.A.
eTravel, a company specializing in managing business travel and the largest entity and technological leader in the industry in Central Europe, notes an increase in business travel bookings based on internal and external data analysis. Comparative data for the period January-April 2024, relative to the same period before the pandemic in 2019, indicate that hotel booking turnover has risen by an impressive 55%, and turnover for airline tickets has increased by 41%.