The corporate travel industry has experienced a significant slump over the last two years due to the COVID-19 pandemic, with travel bans and restrictions affecting travel volumes worldwide. However, a new report from Cvent, leading meetings, events, travel, and hospitality technology provider, has revealed that most travel managers across Asia, Australia, and MEA expect corporate travel volumes in 2023 to exceed pre-pandemic levels.
The Cvent Travel Manager Report provides insights into corporate travel trends and activity, with regional editions containing localized data from hundreds of corporate travel decision-makers. The reports for Asia, Australia, and MEA reveal that 82% of respondents expect corporate travel volumes to increase in 2023 relative to 2019 in MEA, followed by 75% in Australia and 74% in Asia.
The report also highlights the increasing impact of sustainability on the choice of venue, emphasizing the critical importance of hotels showcasing their unique facilities and points of difference and their sustainability efforts and initiatives to attract corporate travel buyers better.
Graham Pope, Cvent Vice President of International Sales, said that the results in the report illustrate the continued growth of corporate travel momentum, with evolving needs that hotels must understand to attract buyers to their properties and stay ahead of the competition. The report also revealed higher expectations from clients, with sustainability at the top of the list, adding that with many hotels operating with smaller teams than pre-pandemic, the report offers critical insight into where hospitality professionals can focus their efforts and leverage technology to work more efficiently and maximize impact.
Moreover, the report found that 84% in Asia, 81% in Australia, and 82% in MEA say their interest in the dual and dynamic rate approach has increased for the 2023 RFP season. The approach allows venues to award discounts for loyalty and flex prices depending on demand and availability, helping them win business in 2023.
Travel managers are increasingly scrutinizing trip prioritization and sourcing needs, asking whether trips are necessary and how each fits into a new formula of cost versus value. Almost half (46%) of travel managers in Australia, 45% in Asia, and 42% in MEA are taking this approach. Once the trip is approved, travel managers rigorously compare hotels on shifting priorities, including cost savings, rate flexibility, and sustainability.
Approximately 80% across Australia, MEA, and Asia say their travel budgets will rise in 2023, including 34% who predict a significant increase. However, travel managers are proactively looking for ways to reduce accommodation budgets to help offset the rising cost of travel. Hotels can highlight unique experiences and offer incentives to encourage additional spending onsite.
Cvent commissioned Censuswide, an independent research company, to survey 250 corporate travel decision-makers in Singapore, China, Japan, Thailand, and India, 100 in Australia and 150 from UAE, Saudi Arabia, and South Africa between 4 and 17 November 2022.
In conclusion, the Cvent Travel Manager Report highlights the optimism amongst corporate travel managers regarding the resurgence of corporate travel in 2023. As hotels navigate the post-pandemic world, they must understand the changing needs of buyers and adapt to evolving trends, including sustainability and cost-conscious travel. Leverage technology and offer unique experiences and incentives to maximize impact and stay ahead of the competition.
Written by: Don Power
