Introducing the latest myCWT product and service enhancements
Building on our digital, omnichannel myCWT platform, our new products and services will simplify travel management for you and your employees – anytime, anywhere, anyhow.
Note: Featured services may not be available in your country at this time. Please reach out to your CWT representative for more details.
Hear from Chief Product Officer, Erica Antony as she shares the key product highlights of 2024, along with the key areas driving innovation.
-
2040: Baseline, Boom or Bust
As we enter an era of rapid transformation and unprecedented challenges, it is essential for travel managers, meeting & event planners, and corporate decision-makers to look ahead and frame our current strategic thinking with a clear vision of the future. Business travel and meetings and events (M&E) are poised for significant change over the next decade and a half, driven by a complex interplay of sustainability goals, technological advancements, evolving work models, and geopolitical dynamics.
In this paper to mark the 10th anniversary of our Global Business Travel Forecast, we explore, for the first time, a long-term vision of the future and potential trajectories through three distinct scenarios, each offering insights into how these forces should affect policy-making, budgeting and priorities. By examining these scenarios, we can better understand the diverse possibilities that lie ahead and the strategic imperatives required to thrive in each potential future.
Based on trajectory data analysis and interviews with industry leaders, behaviorists and climate tech founders, this forward-looking approach enables us to anticipate changes, strengthen our strategies, and make informed decisions that align long-term objectives. It is through this lens of foresight and adaptability that we can build resilience, seize opportunities, and navigate the complexities of the future.
We invite you to reflect on the insights presented, and consider how your organization can prepare for the opportunities and challenges that lie ahead. Together we can ensure that travel and meetings remain catalysts for growth, scalability and sustainable practices.
- Scenario development is both an art and a science
- Megatrends Shaping the Future of Business Travel, Meetings and Events
- Sustainability goals the new crux of corporate policy
- Technology Revolutionizes Travel Management
- Modern work models spark new travel patterns
- Changing demographics open doors to new opportunities
- Three Scenarios: Base case, boom and bust
- Future-proofing strategies
-
CWT GBTA Global business travel forecast 2025
When it comes to pricing, global business travel has finally reached an enduring, higher baseline. Prices will continue to rise in 2025, but only moderately, so expect a period of normalized growth.
However, this pricing environment, one of marginal gains and price regularity, is fragile. Global leisure travel has now realized a lot of its pent-up demand, while corporate travel has been resurgent, with 2024 edging at preCovid levels.
There are many factors at play, whether its volatile oil prices, labor costs and constraints, inflationary pressures, and geopolitical factors. As this elevated baseline edges upwards, albeit marginally, travel budgets will come under increased scrutiny, especially as travel patterns and attitudes change.
It’s why business travel can’t be viewed in a silo, and the true value to an organization must be fully realized. This forecast can help with those calculations.
-
Capitalize on emerging technologies in corporate travel
Technological advancements are accelerating at an unprecedented pace. How will emerging innovations like Generative AI, blockchain, and self-sovereign identity (SSI) transform corporate travel?
BTN and CWT probed global CEOs, travel managers, industry consultants and tech experts on the promises, questions, and expectations these innovations raise and how they are set to reshape traveler experience, cost control and service delivery in corporate travel and events.
Download and discover
- The technologies that will have the greatest impact on corporate travel in the next 2-5 years
- How these emerging technologies are poised to control costs, enhance service and security, and boost efficiency
- The critical challenges, opportunities, risks and roadblocks each innovation raises
- What travel managers, buyers and experts anticipate from these innovations
-
Understanding the behavior of the digital traveler
In this blog, Contentsquare’s Global Head of Customer Experience, Isabelle Hervouet unpacks key learnings from the Contentsquare 2022 Travel Digital Experience Benchmark report, which analyzed over 2.7 billion user sessions across over 328 travel sites from around the world.
The traveler’s digital journey across devices
New restrictions, vaccine stamps, and closures of the physical agencies during the pandemic accelerated digital transformation and mobile device usage in the travel and hospitality industry.
According to our 2022 Travel Digital Experience Benchmark report, mobile was the device of choice for many travel customers, accounting for 60% of online traffic in 2021—that’s a 7% increase from 2020. Clearly, travelers have gotten in the habit of browsing for holidays and experiences on their smartphones. However, when it comes to conversions in the travel industry, it appears to be the opposite — users still prefer to book holidays on larger screens, with a conversion rate of 4.6% on desktop, compared to just 3.1% on mobile.
This data suggests that users find booking on desktop sites easier than mobile but also highlights the importance of optimizing experiences on both devices. It’s important that travel brands understand the mobile vs. desktop split in order to prioritize digital strategies accordingly. And by having a clear picture of your customer and their buyer’s journey, you can effectively streamline your site’s user experience in order to increase conversion rate and revenue.
Take it from the pros: By leveraging user experience insights to optimize its mobile booking experience, a leading hotelier gained a $95k increase in yearly revenue.
Striking a balance between content and site performance
Our 2022 Travel Digital Experience Benchmark report also revealed that 42% of visitors abandon travel sites after viewing only one page, with the vast majority of content never being viewed at all. And of the pages that are visited, the average traveler views just 53% of what’s on screen, often leaving without scrolling down the entire page. This is down from 2020, when the average scroll rate was higher at 67%.
With only half of content being seen, tourism brands should invest more time in optimizing their online content – by using beautiful and inspiring photos to attract customer attention and convert them, while also ensuring that site performance such as speed, isn’t impacted.
Travelers want seamless booking experiences and expect results immediately. So, if your site isn’t performing, they may leave your site and go to your competitor. Booking a hotel or buying a plane ticket are both big and emotional investments that in themselves can cause stress – you don’t want your site performance to add additional pressure.
In today’s digital world, travelers often prioritize speed above all else, so this really could be a make or break for your business.
Making the digital world more human
According to ABTA, 49% of travelers said their holidays are more important to them now than before the pandemic. People want to go back to experiencing travel — however, they’re still scared that the travel can’t happen, that they will remain stuck abroad without being able to go back, that they’ll not be reimbursed, or that they could become sick upon arrival at their destination.
Consumers need to be able to trust the brand they choose to deliver a seamless digital experience before, during and after their travels. As such, travel brands need to make consumers’ lives easier and this needs to start with the first interaction. So, if there’s one thing you should prioritize this year, it’s understanding exactly how and why your users behave the way they do online at each stage of their journey in order to unlock a more human online customer experience on your travel site.
For more analysis and industry trend data to inform your digital strategy, download our 2022 Travel Digital Experience Benchmark Report.
About Contentsquare
Contentsquare delivers the power to make the digital world more human. The leader in digital experience analytics, its AI-powered platform provides rich insight into customer behaviors, feelings and intent, enabling businesses to develop empathy, create lasting impact and build customer trust with security, privacy and accessibility.
-
CWTSatoTravel awarded five-year US Army CONUS contract
CWT, the business-to-business-for-employees (B2B4E) travel management platform, today announces that CWTSatoTravel has been awarded a new five-year contract by the US government for the US Army CONUS (Contiguous United States) for both domestic and international travel.
Effective 18 October 2022, the task order has several new changes and requirements, including new onsites, and incorporates CWTSatoTravel’s workload under the existing Defense Travel Areas (DTAs) 1-4, as well as some workload under DTA 10.
“This exciting award continues our strong 28-year relationship with the US Army,” said Gregory Harkins, President, CWTSatoTravel, “and all of us at CWTSatoTravel are ready and delighted to deliver on behalf of such an exceptional client.”
CWT is a leading global partner in business travel, meetings, and events. Operating across six continents, we deliver sustainable, tailored solutions that help organizations connect, engage, and thrive in an evolving world. Our myCWT platform integrates advanced technology with human expertise to simplify travel and enhance traveler and attendee experiences. Extensive global coverage, seamless data integration, AI-driven analytics, and carbon-conscious travel tools enable businesses to optimize their travel and meetings programs while delivering measurable value.
With 150 years of industry experience and a deep commitment to partnership, CWT collaborates with clients to shape the future of business travel and events, making them more efficient, responsible, and impactful.
CWTSatoTravel has, for over 70 years, served as America’s leading provider of travel management fulfillment services to federal government and military travelers. In a normal year, we issue more than 6.5 million transactions annually to US military and government travelers.
-
CWT appoints Janet Wu Nuckles as Vice President, Tax
CWT, the Business-to-Business-for-Employees (B2B4E) travel management platform today announces the appointment of Janet Wu Nuckles, Vice President, Tax reporting directly to Judy Hendrick, CWT’s Chief Financial Officer.
“One of the reasons I decided to move from interim to permanent CFO after a month of joining CWT is the energy, experience, grit and talent we have in spades across our finance team and leadership. I’m thrilled to have tax powerhouse Janet join our dynamic leadership to help position us perfectly to accelerate towards our ambitious growth and operations targets,” said Judy Hendrick, Chief Financial Officer.
Leading CWT’s efforts in building international tax structure and processes, Texas-based Janet Wu Nuckles will serve on CWT’s Finance Leadership team and be responsible for the strategy, delivery, leadership, and systems that underpin our tax structure and international processes. A tax leader with over 20 years’ experience of successfully building both international and domestic tax teams at global companies, Janet joins CWT from Neutron Holdings, Inc., where she was Global Head of Tax, leading all aspects of the company’s global tax footprint. Prior to this, Janet served at BMC Software, Inc. for almost 13 years, in roles including Director of International Tax & Planning and Senior Director, Tax.
CWT is a leading global partner in business travel, meetings, and events. Operating across six continents, we deliver sustainable, tailored solutions that help organizations connect, engage, and thrive in an evolving world. Our myCWT platform integrates advanced technology with human expertise to simplify travel and enhance traveler and attendee experiences. Extensive global coverage, seamless data integration, AI-driven analytics, and carbon-conscious travel tools enable businesses to optimize their travel and meetings programs while delivering measurable value.
With 150 years of industry experience and a deep commitment to partnership, CWT collaborates with clients to shape the future of business travel and events, making them more efficient, responsible, and impactful.
-
How higher airfares will benefit your business
We’ve all heard the saying ‘what goes up must come down’. However, when it comes to air prices for business travel, it seems it’s going to be a long time until we see anything go down. After a tumultuous few years in the wake of the pandemic, the travel industry – along with the rest of the world – has been in a state of flux.
Just like those of us brushing off the effects of COVID, the air travel industry is in recovery mode. As airlines recoup staff, rebuild to pre-pandemic numbers, and try to become more sustainable, the industry is doing what it can to recover and grow. This is just part of why you can expect to see prices for air travel continue to increase over the next 18 months – as outlined in the 2023 Global Business Travel Forecast, published by CWT and the Global Business Travel Association.
In 2022, the average ticket price was $646. In 2023, that average is set to increase to $700. This means that travel managers will need to adapt and find new solutions for their travel needs that work within their budget restraints. Now is the time to evaluate when, where and why your staff should fly.
When using this lens to plan your travel, it allows to consider other factors – such as the wellbeing of your staff and the environmental impact of your travel. By using the right data and being more strategic, your return to travel can be better for your business and the planet.
Some see change as a good thing. Others see it in a more negative light. The truth is that it’s how you adapt that will determine whether this change becomes the former or the latter. By using the predictions outlined in the 2023 Global Business Travel Forecast, you can make better and more strategic decisions about your air travel moving into 2023 and beyond.
-
Evolving mature meetings program into Total Meetings Management
Brief
- Large global client had reached maturity with their Strategic Meetings Management program, yet still missed critical cost and quality control elements in M&E process.
- Client needed more visibility into total spend as internal planners and other external agencies not using central technology.
- Non-mandated environment provided opportunity for leakage and lack of oversight and governance.
- Challenges with compliance largely due to influx of client’s acquisitions with loyalty to legacy agencies, processes, technologies, etc.
Solution
- As lead agency, CWT M&E remains agnostic to provide expertise and guidance on client’s entire ecosystem of preferred suppliers to drive adoption.
- Implemented dedicated role to educate newly acquired stakeholders on importance of a managed program, allowing program managers to focus on service to existing customers.
- Socialized production and A/V partners to events community and utilized total event data, including virtual, to provide technology reseller services.
- Provided gap awareness around resisters in certain divisions; as CWT M&E is their sole sourcing provider, our reports provide critical data to advise on potential lost savings and spend.
Result
- 80% compliance increase in first 6 months through extensive stakeholder engagement.
- 20% leakage to non-preferred suppliers being reduced by CWT socializing all M&E suppliers and recognized as overall M&E subject matter expert.
- Achieved mastery level of maturity by encompassing totality of meetings and events through unique stakeholder education and advocacy and advancement of policy and governance.
- Collected data from other agency providers ensure visibility of total spend.
- Client is thrilled with program success and focused on elevating, simplifying and adapting additional TMM concepts.
-
Military Service to the Corporate Travel space: A first-hand view from CWT’s veteran recruits
“In my years of service, “battle rhythm” was our unit’s mantra, whereby operative meetings always led to clear situational awareness and definitive decisions. I’m proud to say, this permeates into how we do business at CWT’s Military and Government space,” says Greg Harkins, President of CWT Sato Travel, a retired US Army Colonel, highly decorated combat veteran and the former Director of U.S Army Operations across Africa.
“Throw a service member into a new environment, challenge or problem and they’ll figure it out, because we are by nature, agile at assessing situations and needs, and implementing concrete solutions” adds recently retired Colonel Doug Vincent, the newest addition from the CWT Skillbridge program, who is also another decorated combat veteran and the former commander of the US Army’s Airborne and Ranger Training Brigade.
Greg Harkins and Doug Vincent were originally members of the Department of Defense Skillbridge program, an internship which provides opportunities for service members transitioning from the military to start new careers in the civilian workforce. They are also old friends, having served together in combat as young Captains in the 75th Ranger Regiment and as Majors in the 173rd Airborne Brigade.
CWT & Skillbridge
According to the U.S Bureau of Labor Statistics the unemployment rate for younger veterans — those who served in Iraq and Afghanistan – reached as high as 13% in the early days of the pandemic in 2020.
Skillbridge seeks to change that, uniting retired veterans with commercial roles. CWT leads the way in the Travel Industry as an ambassador for the program.
The program comprises flexible and tailored fellowships where service members gain valuable travel industry experience while CWT benefits from the skills, experience, and fresh perspective brought in by veterans. The program is proving a success. CWT has been working hard to fill its “Ranks” with these patriots by placing them in in numerous positions from management to front line operations for several years and is the largest supporter of the program of any TMC.
In fact, CWT has long been a leader in supporting veterans and military spouses. As the largest provider of travel management services to the US Military and Government it keenly understands the mission of its customers and talent of service members.
In a short period of time, Doug Vincent has impacted CWT’s long-term strategy and now delivers on its new vision as a member of CWT’s dynamic sales team, “The concept of Skillbridge is great for those who have served our nation and are now transitioning from the military to industry,” he says, “as a service member, you get an opportunity to see what you might want to do in the next chapter of life and the industry gets an opportunity to assess talent.”
Harkins and Vincent, now permanent CWT staff, were familiar with the company long before joining, “As former CWT customers, you knew when you needed something from CWT’s customer counselors, they’d make it happen,” says Harkins, who relied on CWT for many years to help transport him to various missions as well as helping to repatriate his family, children and dogs to their various new posts at the drop of a hat.
People first
Vincent joined Harkins after 30 years of army service which included 17 moves around the world for him and his family. An official CWT employee since June 2022, he originally considered a commercial career in the defense industry until Harkins convinced him otherwise.
“Veterans often default to defense roles after retirement, but career opportunities are so much broader than this one sector. At CWT I’m focused on sales and marketing which essentially is all about working and communicating well with people and exercising great diplomacy skills – which are the fundamental hallmarks of military personnel.”
According to both Harkins and Vincent, strong culture, trust, dependable teams and a supportive infrastructure is what most veterans search for when changing career lanes; “Programs that facilitate a career ‘test bed’ environment for ex-military personnel in the commercial sphere provide an invaluable service. Skillbridge and CWT combined have given us the impetus to feel professionally valued and challenged at a pivotal point in our professional lives and made the transition from the rigor of the military work environment to the commercial sector a truly positive experience.”
-
Rate of improvement: 3 ways to help manage travel spend
Headlines abound with news of energy price hikes, a labour squeeze and pockets of geopolitical tension. There’s a great deal to be positive about when it comes to the return to travel and meeting in person but uncertainty doesn’t make it easy to plan and manage spend.
Here are some insights from the CWT GBTA 2023 Global Business Travel Forecast to help you get the most value from business travel.
The long view
A longer booking window helps you take advantage of advance purchase rates, which can make for savings at a time when rate are rising.
Booking as early as possible will also help to ensure availability. Use the myCWT app to book flights, hotel and car rental at the same time to keep everything in one place and make it easier to stick to your travel program parameters.
We go way back
Stay within your preferred supplier network and make it easy for employees to sign up for their loyalty programs. Forming genuine partnerships with suppliers will pay dividends.
Beyond the bill
Purposeful travel balances value for money, employee well-being and environmental responsibility, supporting business objectives and allowing teams to thrive.
Attracting and retaining talent are becoming key priorities for organizations leading many to evaluate their corporate travel policies to embrace more balanced and sustainable programs.
Gone are the days of limiting travel to the cheapest class and airfares, or halting air travel altogether in name of slashing costs.
Considering how and when to travel and taking a strategic approach to smart, flexible and purposeful travel policies to achieve higher level business objectives gives companies a competitive advantage.
For more insight into future pricing and planning for air, hotel and ground transportation download the CWT GBTA 2023 Global Business Travel Forecast.
-
Podcast: Cleaner Skies Ahead: Is sustainable aviation fuel on the cusp of taking off?
Richard Johnson, Global Head of Solutions Group, the consulting arm of global travel management platform CWT is joined by Heinrich Lange, Senior Director Sales Northern Europe, and Head of Global Account Management, EMEA, Lufthansa. Together they unpick the practicalities of accelerating the development and integration of sustainable aviation fuel (SAF) and the collective efforts of the entire aviation industry to achieve net zero emissions by 2050.
Find out:
- Why making SAF the crux of fruitful business relationships is integral to its success.
- From electrification to adhesive covers modelled on sharkskin, what are the broader opportunities for carbon reduction, how feasible are they and how can we foster innovation at a critical time for our planet?
- Is there a one-size-fits-all answer to whether not flying is the most sustainable solution?
[buzzsprout episode=’11234834′ player=’true’]
-
One is the loneliest number: How to batch your trips
‘Many great things come as a batch. Cookies. Dinners for a busy week ahead.’ Benedict Cumberbatch.
Now a growing number of business travelers are booking several trips in one region known as ‘trip batching.’
The strategy is recommended in the 2023 CWT GBTA Global Business Travel Forecast released this week, as a way to mitigate against rising airfares, hotel rates and care hire, predicted to rise 8.4%, 8.2% and 6.8% respectively in 2023.
Rather than booking individual return trips, trip batching involves choosing a region and booking multiple trips in the area at once.
The idea replaces trip stacking which became a trend at the height of the pandemic and involved booking multiple trips to get a chance to travel even when borders closed or new travel policies were introduced. Trip stacking effectively leverages flexible cancellation policies to make for Plan A and Plan B scenarios.
Become an expert trip batcher by booking ahead, traveling smart and staying flexible.
Book ahead
Book as early as possible to help ensure availability. Consider using apps like myCWT to book flights, hotel and ground transport at the same time to keep everything in one place and make it easier to stick to your travel program parameters.
Travel smart
“Many are expecting that with costs going up people will travel less,” says Richard Johnson, Senior Director CWT Solutions Group, “I don’t think that’s the case. There is more likely to be a smarter use of travel budgets and a focus on not only the financial aspects of travel but how it balances against ESG goals and sustainability. Some companies will travel less but better.”
For some, that means combining business and leisure, a phenomenon that was already on the ascent before the pandemic, rising 60% between 2016 and 2018, according to travel platform Expedia Group. “Bleisure” trips are expected to explode as a result of remote and hybrid working and concern about impact on the planet.
Stay flexible
The reality of travel may not be as stark as requiring a plan A and plan B in case of a sudden lockdown but labour shortages, geopolitical risks and changing availability may still cause uncertainty in the short to medium term. Whether it’s rail transport or researching flexible and alternative travel options, it’s prudent to stay agile. Additionally, download the myCWT app and ensure that your travel profile, payment card details and passport expiry dates are up-to-date.
To build, budget and understand future trends in air, hotel and ground travel read the 2023 CWT GBTA Global Business Travel Forecast.
-
Business travelers set to see air fares rise by 8.4%, hotel rates by 8.2%, and car rental charges by 6.8% in 2023
This is on top of a predicted full year 2022 increase in air fares of 48.5%, hotel rates of 18.5%, and car rental charges of 7.3%
Global travel prices are predicted to continue to increase in the remaining months of 2022 and throughout 2023, according to the 2023 Global Business Travel Forecast, published today by CWT, the B2B4E travel management platform, and the Global Business Travel Association (GBTA), the voice of the global business travel industry.
Rising fuel prices, labor shortages, and inflationary pressures in raw material costs are the primary drivers of the expected price growth, according to the report, which uses anonymized data generated by CWT and GBTA, with publicly available industry information, and econometric and statistical modeling developed by the Avrio Institute.
Year-on-year changes in travel pricing (actual)
2020(actual)
2021(estimated)
2022(estimated)
2023Air fares (12%) (26%) 48.5% 8.45% Ground transportation (2.5%) 5.1% 7.3% 6.8% Hotel rates (13.3%) (9.5%) 18.5% 8.2% Source: 2023 Annual Global Business Travel Forecast “Demand for business travel and meetings is back with a vengeance, of that there is absolutely no doubt,” said Patrick Andersen, CWT’s Chief Executive Officer. “Labor shortages across the travel and hospitality industry, rising raw material prices, and greater awareness for responsible travel are all having an impact on services, but predicted pricing is, on the whole, on par with 2019.”
“What we are seeing now are multiple factors coming into play when corporate travel buyers and procurement officers model their travel programs. This eighth joint annual forecast marries statistical travel data and trend analysis with macroeconomic influences to provide a cornerstone reference point for their corporate business travel planning ahead,” said Suzanne Neufang, Chief Executive Officer of GBTA.
Macroeconomic influences
The world economy shrank 3.4% in 2020 in one of the worst declines since World War II. Service sectors, including travel and hospitality, were hit especially hard, but the global economy recovered briskly, rising off the lows of 2020 and increasing 5.8% in 2021. Economic growth is moderating as the recovery lengthens, although another recession is a growing concern. The current base case scenario for 2022 is for 3% growth, followed by 2.8% growth in 2023.
Cautionary notes also highlighted in the 2023 Global Business Travel Forecast, highlight the three main forces exerting pressure on the economy and the business travel industry. These include Russia’s invasion of Ukraine coupled with other geopolitical uncertainties, inflationary pressures that are pushing costs higher, and the risk of further COVID outbreaks that could restrict business travel.
Conversely, with businesses ranking sustainability among their top priorities and reflecting the accelerated importance of combating climate change, the report highlights greater visibility at the point of sale for greener travel options, as well as carbon foot-printing, and environmental impact assessment is an opportunity for the travel industry to actively assist in responsible choice-making.
Meetings and Events
Prices have increased in all regions across most categories of spend, fueled by pent-up demand, a desire to build company culture and an uncertain economic outlook. The cost-per-attendee for meetings and events in 2022 is expected to be around 25% higher than in 2019, and it’s forecast to rise a further 7% in 2023.
Alongside pent-up demand, corporate events are now competing with many other types of events that were cancelled in 2020. And, with many companies having given up office space during the pandemic in favor of remote working, they are now booking meeting spaces when staff gather in person, further fueling demand.
Shorter lead times for events, varying from one to three months versus six to 12 months, are also contributing to this perfect storm, perhaps underscored by corporate concerns that the situation they face today could change very rapidly. This is particularly noticeable within Asia Pacific, which has been slower than other regions to re-open post-pandemic, with ongoing restrictions in China prompting clients to make sure their events can go ahead, and as quickly as possible.
Air
Business travel airfares fell over 12% in 2020 from 2019 followed by an additional 26% decline in 2021. Economy ticket prices fell over 24% from 2019 to 2021, while premium tickets fell 33%. Prices are expected to rise 48.5% in 2022, but even with this steep price increase, prices are expected to remain below pre-pandemic levels until 2023. Following an increase of 48.5% in 2022, prices are expected to rise 8.4% in 2023.
Rising demand and continued price rises on jet fuel, which have seen prices more than double in some markets to over $160/barrel according to S&P Global, are putting upward pressure on ticket prices.
Premium class tickets comprised over 7% of all tickets purchased in 2019. The share of premium class tickets fell to 6.5% in 2020 and to 4.5% in 2021 but have started to rise in 2022. Through the first half of the year, premium tickets made up 6.2% of all tickets purchased. A rising share of premium class tickets will result in higher average fares as average ticket price comprises economy and premium.
International and cross border bookings are recovering across most regions which will result in a higher share of international ticket bookings and a corresponding higher average ticket price despite uncertainties caused by the war in Ukraine. Following two years of minimal to no expenditure, business travelers are likely to be willing to spend more on tickets, especially as availability reduces due to labor shortages. This upward trend is largely due to widespread vaccine rollouts and border re-openings.
Hotel
Hotel prices fell 13.3% in 2020 from 2019 and a further 9.5% in 2021, however the report expects them to rise 18.5% in 2022 followed by an 8.2% lift in 2023. Hotel prices have already eclipsed 2019 levels in some areas such as Europe, the Middle East & Africa and North America and are expected do so globally by 2023.
Hotel rates have risen sharply in parts of the world including a 22% rise in North America – and a forecast 31.8% across Europe, the Middle East & Africa – driven by an accelerated recovery coupled with continued capacity constraints.
Hotel rate increases were initially driven by strong leisure travel in 2021 but group travel for corporate meetings and events is improving and transient business travel is similarly gaining healthy pace, putting further pressure on average daily hotel rates.
Ground transportation
Global car rental prices fell 2.5% in 2020 from 2019, before rising 5.1% in 2021. Prices are expected to increase 7.3% in 2022, hitting new highs, and rise a further 6.8% in 2023.
The vehicle industry remains capacity constrained and rental agencies which reduced fleet sizes in the wake of the pandemic, have not yet fully recovered – due in part to component shortages and supply chain disruptions that have reduced global auto production.
Rental agencies have reverted to buying used vehicles to increase fleet sizes and are keeping their vehicles longer. Some agencies are also buying vehicles from auto-makers outside of their historically supported brands.
Skyrocketing prices, vehicle shortages and the need for visibility into carbon emissions from door-to-door are driving corporate travel managers to factor ground transport into full trip planning from the beginning. This is especially true when factoring in the inclusion of electric vehicles, and while widespread adoption may still be a few years away, personal preference should not be underrated.
For more detailed information, including geographic breakdowns and greater in-depth insights into trends and analysis, please visit the report online, where you can also download a PDF version of the 35-page report.
Will you be at the GBTA Convention 2022, August 14-17 in San Diego? (August 14-17, 2022)
About the 2023 Global Business Travel Forecast
Projections in the 2023 Global Business Travel Forecast involved:
- Statistical models developed by GBTA
- Evaluation of historical price behavior and forecasts on air, hotel and ground categories by research, strategy and market and economic research firm, Avrio Institute
- The market-specific expertise and travel industry knowledge of CWT
- Information sourced from the International Monetary Fund Research Department, IATA, the World Travel and Tourism Council, the United Nations, and other leading organizations
Projections are based on anonymized transaction data from CWT’s global client portfolio, including anonymized client travel patterns, over the past ten years. Key macroeconomic and per-country indicators, such as current and expected GDP growth, the consumer price index, unemployment rates and crude oil prices, were used in the statistical model, as well as key supply-side drivers sourced from OAG and STR Global. All air statistics represent point of origin and include all trip types.
Learn more about the 2023 Global Business Travel Forecast and the price projects and trends that lie ahead in 2023 during an education session at GBTA Convention 2022 (room 20D) on Monday, 15 August 2022 at 10:00hrs hours (PST).
CWT is a leading global partner in business travel, meetings, and events. Operating across six continents, we deliver sustainable, tailored solutions that help organizations connect, engage, and thrive in an evolving world. Our myCWT platform integrates advanced technology with human expertise to simplify travel and enhance traveler and attendee experiences. Extensive global coverage, seamless data integration, AI-driven analytics, and carbon-conscious travel tools enable businesses to optimize their travel and meetings programs while delivering measurable value.
With 150 years of industry experience and a deep commitment to partnership, CWT collaborates with clients to shape the future of business travel and events, making them more efficient, responsible, and impactful.
About GBTA
The Global Business Travel Association (GBTA) is the world’s largest business travel and meetings trade organization representing the $1.4 trillion business travel industry. With operations across four continents, GBTA’s members manage more than $345 billion of global business travel and meetings expenditures annually. GBTA delivers world-class education, professional development, events, research, advocacy, and media to a growing global network of more than 28,000 travel professionals and 125,000 active contacts. Visit www.gbta.org and follow us on Facebook, LinkedIn, Twitter, and YouTube.About Avrio Institute
Avrio Institute is a trendcasting and research firm that helps clients navigate technological shifts, differentiate from competitors and identify new markets and opportunities. Derived from the Greek Αύριο meaning, “tomorrow,” Avrio helps leaders from Fortune 100 and Global 1000 companies, scrappy start-ups, government agencies, and non-profit organizations prepare for uncertain, divergent futures. -
Building a better mousetrap – Smarter payment solutions for strategic meetings management
It is common knowledge that the real key to driving and sustaining success in strategic meetings management is developing a productive ecosystem where stakeholders are finding value. When they perceive value, they participate, share the good news, and provide ongoing input to drive continuous improvement. This ecosystem, or “mouse house” for purposes of this example, should be built to achieve the company’s objectives in a way that delivers on this value proposition. In effect, we are building a better “mousetrap” for your “mouse house.”
Would it surprise you to hear that one of the most effective pieces of bait is not a precious, ripe piece of yellow cheddar? But, instead a meeting card? Not a slice of smoked provolone cheese, but integration with expense systems? Not a nugget of Swiss gruyere, but a perfect procure to payment processes? I know, I know, how appealing these payment solutions may sound, especially with decades of experience having proven that it is exactly the trick to lure in said mouse.
If you are practicing strong strategic meetings management foundational principles, you are likely talking to your stakeholder before you build your “mouse house.” It is highly likely that as you have these conversations, you will hear a resounding cry around the time and energy spent just to pay invoices. Matching up codes, entering multiple systems, double, if not triple checking submissions, to ensure payments are sent. Your stakeholders are saying that they feel like accounts payable clerks. Every moment they spend on these activities is a moment not spent on making great meeting design and content.
Image credits: Adobe Stock
-
Scaling NDC forward
In our ongoing efforts to make widescale NDC adoption a reality, CWT recently announced the launch of our new pilot that will allow travel counselors to make live NDC bookings for our customers. This is a pivotal game changer for both CWT and the business travel industry.
NDC changes much more than just distribution technology, as it will impact additional aspects of travel procurement, travel programs and traveler experience.
That’s why I’m excited to participate as a moderator at the upcoming GBTA Convention 2022 focusing specifically on how we can help our clients better navigate the evolving world of NDC. With this year’s conference theme being (Re) Connect, (Re) Imagine, (Re) Create, it is the perfect opportunity to connect our partners and customers to imagine ways we can work together to move NDC forward.
We have all discussed the ways we think NDC will change air distribution, but it’s time to look deeper at how NDC might change travel and travel programs. The heart of managed business travel is the program itself, which takes careful design and rollout based on a range of factors and nuances.
Therefore, on Tuesday, August 16. I will host the open panel discussion “Navigating an NDC World – Strategies for Success” to explore how NDC will play a more pivotal role in the overall management of travel programs. The session will include industry experts and insiders who will work together to explore how NDC might change how airline travel programs are designed.
If you are attending GBTA, I hope you will join me for this thought-provoking session to gain more knowledge on how we can reach the next phase of our NDC journey.
Image credits: Adobe Stock