According to the Cvent Travel Managers Report: Europe Edition, most respondents were optimistic about the future of business travel, forecasting an increase in the number of trips in 2023. However, rising costs remain a key challenge for travel managers looking for innovative strategies to reduce expenses.
The Cvent report shows that the vast majority of respondents (80%) have a positive view of the state of business travel in their organization. Among them, nearly two-thirds (64%) expect the number of trips in their organization to increase in 2023 compared to 2022, and nearly one-fifth (19%) say the increase will be significant.
While an increase in travel means increased spending, minimizing costs remains a priority. 65% of respondents said that rising costs are their main concern. This figure rises to 73% for travel managers in both France and the UK. Most aspects of business travel are subject to inflation, with nearly 30% of respondents expecting the largest increase in ground transportation costs. Hotel rooms, travel expenses, insurance, technology spending, and visas are other areas of greatest concern when it comes to rising costs.
Fewer traveling colleagues
As costs pose a challenge for organizations, business travel managers are finding new ways to reduce spending. One such tactic (40 percent) is to combine business travel with existing meetings and events that their teams are already scheduled to attend. In addition, 37% of business travel managers (up from 32% in the December 2022 report) say they plan to reduce the number of traveling employees, with this figure rising to 43% in France. Although the number of travelers may be reduced, the overall number of trips is likely to continue to increase.
The ongoing evolution of factors influencing hotel and venue booking decisions
Apart from costs, the factors that have the greatest impact on travel managers’ decisions regarding hotel and venue bookings are: proximity to the company’s headquarters (37%), flexibility of terms (35%), ease of access and familiarity with the location (both 26%). Travel decision-makers also seek quick responses and prioritize hotels that demonstrate effective use of technology during the RFP process.
Sustainability remains a top priority
26% of business travel managers surveyed believe that a greater focus on sustainability will shape their priorities over the next two years. In addition, nearly one-third (29%) of respondents actively seek out content and features related to sustainability initiatives at hotels and venues.
Changes in sourcing processes and priorities
When asked how their approach to sourcing hotels has changed since 2019, 33% of respondents say they spend more time searching for hotels using technology. In addition, 28% look for hotels that offer virtual and hybrid meeting technology.
Source: Cvent Travel Managers Report / Photo: Unsplash
