What does the world of business travel look like in 2018? Will the costs rise? Will the offering change? What worries travellers? Join us and take a peak in our crystal ball.
Globally, the year 2018 seems positive for travel as the economic situation keeps strengthening and demand keeps growing. And what about Finland? The data compiled from our client meetings indicates that 51% of companies are predicting this year will be promising for their business, as the number of orders keeps growing and internationalisation continues. Nearly 40% estimate that business travel will increase.
Still tighting travel budgets' belt
Despite the favourable economic trends and positive growth, organisations continue to closely monitor their travel costs. Travel budgets for 2018 observe international price increases of nearly 4%. Both hotel costs and airline fares are on the rise across the board. As regards travel, organisations are also paying even more attention to user-friendliness and passenger productivity. This can be seen in smarter travel planning and more effective working during the trip.
Paying more attention to passenger productivity shows in smarter travel planning and more effective working during the trip.
What is new for flights and hotels?
This year, planes are fuller than before, and airline fares will see moderate increases of a few per cent. The selection of additional services will expand and pricing will be fragmented further. On long distance flights, additional intermediate premium classes are expected to appear between the economy and business categories. Trains are becoming an increasingly popular alternative to flights especially in Europe and Asia. Motivations for choosing a train may include, in particular, time management, costs, comfort and sustainability.
Hotel prices will be up by 3–10% from last year, depending on the region and city. Occupation rates will be sky-high in Europe, especially in London, Dublin and Barcelona. You should reserve early for these destinations. Hotel chain mergers are sure to affect price negotiations and service concepts both internationally and in Finland. Today, the ideal hotel scheme is a hybrid that combines fixed contract prices, dynamic daily rates and chain-specific contracts.
Top of mind: Safety and technology
In addition to price trends and service offerings, safety and care continue to play important roles in travelling organisations. Technology is utilised in an even more versatile manner for locating travellers and managing emergencies. As cybercrime grows, travellers need to be able to manage data protection matters on the road as well as in the office.
Analysis by
Mari Svahn
Business Analyst, SMT