A new survey by the Economist Intelligence Unit and Amadeus paints a bleak picture about the future of corporate travel. If it’s true, then the repercussions will be felt by all everyone.
As I look at these numbers and weigh my recent conversations with business travelers, I find they’re almost too optimistic. I think the larger numbers may be on the bottom of this graph — not the middle.
Among the key findings:
1. Perks don’t matter. The expectations of business travelers are changing. Economic pressures mean that executives now care less about luxury and instead are concentrating on whether hotels deliver on the basics.
2. Focus on bargains. The downturn will lead to fewer, shorter business trips and executives expect to downgrade hotels. Travel buyers will take advantage of this fall in demand to extract the best possible room rates.
3. Fewer risks. Business travelers will be less likely to take their chances with the unknown, preferring trusted brands.
4. Rise of budget hotels. It is a time of real opportunity for budget hotels. But they will need to compete on more than price. Despite the downturn, executives still care about amenities.
You can read more about the survey here.
Why should you care about what the road warriors are doing? Because business travelers essentially subsidize a large part of the travel experience for the rest of us, particularly air travel. If they go, then guess who gets to foot the bill?
That’s right. We do.
