Will the iPad kill business travel?

by Tom Johansmeyer on

The business travel market comeback has been going on for quite some time, but it looks like the corporate folks may be losing interest in getting on planes. I can relate to that: back when I lived the road warrior life, there was a certain amount of dread that came to be associated with the alarm clock, the town car and the boarding process. So, it’s hardly surprising that online events are starting to chip away at business travel.

VentureBeat reports that marketing folks are leaning more toward “virtual happenings” in 2011 and are cutting back on physical events. In a survey by virtual events company Unisfair, 62 percent of respondents say they’re pouring more money into online events this year … and that 42 percent are spending less on the physical alternative.

What’s interesting is that it isn’t an aversion to boarding a plane that’s driving this trend. Rather, there are a variety of reasons, all of them customer-driven. Sixty-two percent of respondents indicated that they preferred being able to attend a virtual event via a mobile device or smartphone (e.g., an iPad), and 58 percent like virtual over physical events because they can multitask.

So, how does this affect the future of business travel? Well, VentureBeat notes:

The numbers confirm what much of the business world is already experiencing: That physical attendance at conferences and tradeshows is becoming less frequent as companies switch to cheaper, easier-to-access virtual events.

In fact, the situation is poised to worsen: 87 percent of the survey’s respondents “predict hybrid (part physical, part virtual) events will represent at least half of all events in the next five years.”

In the next half-decade or so, checking in will have more to do with location-based services than hotel rooms, it seems.

You’re going to book travel online this year

by Tom Johansmeyer on

Business travel isn’t the only category on the rise these days: everyone else seems to be spending more on travel too.

I ran into an article on eMarketer’s blog this morning that shows leisure and unmanaged business travel is on the mend, after what’s been a tough couple of years. After falling in 2009, the sector ticked upward in 2010.

Leisure and unmanaged business travel spending are expected hit $107.4 billion this year, according to eMarketer’s estimates. That would be a gain of 8.5 percent over last year’s $99 billion.

People are traveling more, it seems. But, there’s more to it than that. We’re also spending more for the privilege of being bumped with the beverage cart and scolded for not turning off our Kindles and iPhones.

And, we’re increasingly likely to do our homework online. This year, more than 114 million would-be travelers will research their options on the web, says eMarketer, and 93.9 million will pull the trigger and actually book online. The average online travel buyer is likely to spend $1,213 this year, up from $1,145 in 2010.

Business travel is back and growing fast

by Tom Johansmeyer on

Business travelers shelled out more cash in the fourth quarter of 2010 than they did in any other since the recession kicked in. The latest report from the Global Business Travel Association shows an increased spend of $4.2 billion over the previous quarter. For all of 2010, business travel spending ticked up 3.2 percent – far ahead of the 2.3 percent originally predicted.

Now, hopes for 2011 are even higher. Business travel spending is expected to grow 6.9 percent this year, relative to an original forecast of 5 percent.

According to Michael W. McCormick, GBTA Executive Director and COO, “These are very heartening signs. Business travel spending is coming back at robust levels, indicating the shape of things to come – namely more travelers on the road, an improving economy, and a positive environment for continued job growth.” He added, “Thanks to increasing corporate confidence, companies are investing more in business travel which will further stimulate business activity and economic growth.”Increased travel prices are part of the reason for this, the GBTA explained. The association noted that “[r]ate analysis based on an aggregate of airfare, lodging, meals, ground transportation and car rentals shows travel prices in 2010 increased by 2.5 percent and are projected to increase between 2 percent to 4 percent for 2011.”

Some of the gains are also coming from business travelers crossing borders. Lat year, international travel spending climbed 17.3 percent year over year, with another 7.9 percent expected this year. International travel growth is expected to outpace the overall trend.

Finally, good vibes are contributing to the increased flow of cash. McCormick said, “Group travel, events and conferences are large expenses with long lead times. Companies lacked the confidence and clarity to make these longer-term investments when the economy was struggling, but these increases are further evidence that companies are feeling much better about investing in business travel and face-to-face meetings once again.”

Orbitz listens to business travelers, goes mobile

by Tom Johansmeyer on

When you’re out on the road for your company, wouldn’t you rather use a mobile device to book your trips and get information? Well, the travel industry is catching on.

Orbitz for Business, the division of Orbitz that caters to laptop-toting folks, just announced that it has launced an “end-to-end mobile solution” that the business travel community can use to book their flights, hotels and such from their smartphones via a mobile-optimized website. This could make life a lot easier for road warriors who don’t book until the last minute … or look up hotel details until they are en route to the airport.

“Business travelers increasingly want to use mobile devices to search and book trips that adhere to their companies’ travel policies – we do not believe a comprehensive, end-to-end solution has been available until today,” said Frank Petito, president, Orbitz for Business. “The Orbitz for Business mobile solution enables travelers to plan and purchase air, hotel and car travel through a streamlined, intuitive interface optimized for mobile devices. Equally important, the solution was built to support the policy, control and compliance requirements of corporate travel managers and their programs.”
So, what does this new solution do? The company said it allows users to make new reservations, track their trips and itineraries and watch for flight statuses and updates. It can also be used in accordance with a company’s travel policies … always important when someone is approving your expenses.

What really makes this development interesting is that business travelers have been leaning in this direction. In a Deloitte report on business travel back in November, we learned, “Twenty-six percent of respondents have downloaded a hotel app to a device, with 54 percent of them using it ‘primarily to book a room.’ “

See, someone’s listening!

What are the top five cities for business travel?

by Tom Johansmeyer on

Some cities are better for doing business than others, it seems. Of course, business travelers (well, professionals in general) all have their preferences. Having done my time in Omaha, Winnipeg and London (Ontario), I can tell you that some places are better than others. So, I was pretty excited to see think tank Z/Yen put out its Global Financial Centres Index (PDF), which shows the top five cities in the world in which to do business.

There aren’t many suprises at the top end of the list, which comes out twice a year. The rankings are determined using “five key areas of competitiveness,” according to Inside Investor Relations: people, business, environment, market access, infrastructure and general competitiveness.”

So, what are the top five?

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1. London
2. New York
3. Hong Kong
4. Singapore
5. Shanghai

As you can see, 60 percent of the top of the heap are in Asia, which signifies a spike in recent years. Inside Investor Relations reports that there were only three Asian cities in the top 20 when the index was first published in March 2007. Now, there are not only three in the top five but eight in the top 20, while North America has only six and Europe five.

Interestingly, the study notes that the top three are effectively tied. Inside Investor Relations notes:

According to the study, however: ‘there remains no significant difference between London, New York and Hong Kong… respondents continue to believe that these centers work together for mutual benefit.’

The top financial center in the Middle East is Dubai, which comes in at 28th overall. It is two places above Qatar. Next are Bahrain at 49th and Riyadh at 70th, still way back in the distance.

[Photo by TJ Morris via Flickr]