Top hotel executives recently revealed that domestic corporate travel in the United States is on the rise, with an increase in both reservation rates and costs. The businesses favoring local travel range from small to large corporations due to the ongoing global travel restrictions.
While some experts view this trend as temporary, others predict it might lead to a paradigm shift in corporate travel norms. Regardless, this shift is significantly affecting the US hotel industry, causing necessary operation and service adaptations.
The revival is mainly led by small and medium-sized businesses, but large corporations are also maintaining steady booking rates. For example, Hyatt Hotels Corp reported a 12% growth in corporate accounts and an overall 6% increase in corporate travel. This trend suggests growing demand for business travel accommodations, even during the recovery period, highlighting the importance of adhering to health and safety protocols.
Anticipations for 2021 suggest continued growth in corporate travel, a direct contrast to 2020.
Resurgence in US corporate travel trends
Industry professionals hope this upward trend will help businesses recover and return to pre-pandemic performance levels. The key to industry survival, therefore, lies in adopting digitization and contactless solutions, to make travelers feel safe and foster confidence in corporate travel.
However, challenges persist, as travel restrictions continue to fluctuate worldwide, complicating the planning process for corporations. Furthermore, experts predict an increase in costs associated with premium corporate account reservations and a surge in group corporate travel, reflecting growing confidence in the industry, despite ongoing pandemic concerns.
Clients seem to be booking five to seven years in advance for their future events, indicating that corporations are regaining their footing post pandemic. Furthermore, despite the increasing demand for larger meetings and associated price growth, these trends are leading to financial gains and solidifying a foundation for future prospects.
In conclusion, the increase in domestic corporate travel is marking a transformation in business and travel sectors. An adjustment towards more sustainable travel practices presents a challenge to traditional business travel and hospitality industries, but at the same time, opens up opportunities for tech companies offering virtual meeting platforms or affordable, eco-friendly travel alternatives.
As companies leverage technological advancements to replace traditional business meetings, the efficiency of virtual meetings needs to be balanced with the necessity for direct human contact. Therefore, blending traditional and virtual approaches seems to be the future trajectory for corporate travel.
