Martin Klima, our Chief Customer Officer, participated in the Serviced Apartments News webinar to explore the future of business travel. Torger Philosophos, VP Sales at Landing, and Julian Girndt, Regional Director of Sales Europe at Adina Apartment Hotels, joined him.
Want to watch the webinar in its entirety? Find it here
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Business Travel Industry snippets to begin:
- Gen Z and Millennials are most likely to travel for business in 2024
- More than 1 third of business travellers said they would extend a business trip in 2024
- Extended stay room revenues are 20% higher in traditional hotels than in extended stay hotels = greater opportunity for serviced accommodation to capture greater demand from extended stay corporate travellers
- 76% of travellers said they appreciate travel apps
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Martin's key insights on the future of business travel included:
| The heavy impact of remote and hybrid workers on travel programmes
Remote working has shifted the focus towards employees' work-life balance and preferences in travel. There's a growing demand for travel products that mimic the remote working environment, including co-working spaces and co-living spaces. Some companies are offering flexible travel policies that allow employees to work remotely from various locations, which may have tax and visa implications. However, forward-thinking companies are implementing flexible policies to attract top talent and adapt to the changing landscape.
| Lump Sum Relocations vs Direct Payment Locations
SilverDoor is seeing more companies move towards lump sum relocation instead of paying for everything directly. The approach to relocation may depend on the company's scale or even maturity. For example, an ‘older’ organisation may still be going with the traditional model, and the ‘younger’ ones are coming in with the lump sum approach. Demographics and the preferences of the workforce play a role in determining the relocation approach. The choice varies from one company to another and depends on their specific needs and goals.
| The rise in awareness of ESG principles, criteria and commitments; causing an impact on corporate travel choices
ESG (Environmental, Social, and Governance) considerations are impacting business travel choices, but it's not a straightforward or direct influence. While ESG is important to companies, cost remains a top priority for most of them. Sustainability and ESG considerations may vary depending on government regulations, the influence of big businesses, and the supply chain. ESG does influence individual traveller choices to some extent, particularly among younger generations who are more environmentally conscious. However, budget constraints often limit travellers' ability to choose more sustainable options, as these choices can be more expensive. Ultimately, cost and sustainability goals are not always aligned, making it challenging for corporate travellers to choose the most eco-friendly options within their budgets.
There is no consistent standard for sustainability, but there are various accreditations and certifications for different buildings and initiatives. Realistically, achieving sustainability in travel and accommodations is challenging due to the lack of a uniform standard as of yet. At the moment, corporations are more interested in aligning with ethical and principled values, particularly in the social and governance aspects of ESG (Environmental, Social, and Governance).
Sustainability efforts currently focus on data collection and reporting rather than mandating specific eco-friendly features in accommodations.
The emphasis is on demonstrating a commitment to ESG rather than delivering specific sustainability measures, as the standards and expectations are still evolving.
| Meeting duty of care for corporate travellers
Handling the support and requirements for travellers can vary significantly based on the policies and preferences of the company they are travelling under. There is a concern that overcomplicating or overregulating these processes can create confusion and challenges. SilverDoor believes in treating travellers with respect, offering support as needed, and providing necessary information to make them feel comfortable in a new location. The key is to use common sense and avoid unnecessary complexity or overregulation in the travel support process.
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