Worldwide: The latest quarterly report from SilverDoor reveals that, due to increases in supply, corporate travel is expected to increase worldwide as managers negotiate rates and value.
Over the last quarter, the most popular destinations for bookings include Amsterdam, London and Barcelona, followed by India, Japan, Taiwan and Riyadh.
Looking ahead, this September in Europe is forecasted to be busier than the same period last year. Likewise, the easing of China’s visa restrictions is leading to increased international inbound demand, alongside a 13 per cent growth in enquiries for Hong Kong compared to April-August 2023 across APAC.
Legislative changes are also impacting the market, such as the minimum stay requirements of 31-32 nights in Barcelona. Across North America, cities such as New York, Toronto and Colorado have also tightened short-term rental laws.
While cost remains a key consideration when booking corporate travel, the last quarter has shown a greater focus on driving additional value such as complimentary breakfasts or reduced housekeeping fees.
Martin Klima, chief customer officer, SilverDoor said: “The growth in supply has been welcome news for corporates, particularly at a time when many will be planning budgets and programmes for the year ahead. However, critical to any accommodation supply is how it is legislated for and managed by local authorities and government, as that will inevitably define its ratio of availability for local residents versus visitors.
“We would advise a degree of flexibility when planning ahead. Whilst cost remains one of the guiding principles of planning and managing a travel programme, it’s important for corporates to remain realistic about the standard of accommodation and facilities available to them within ADR and legislation brackets, manage traveller expectations accordingly and look at alternative options if and when needed. For example, accommodation that is perhaps out of immediate city centres but still workable due to extended transport links and commute times, and keeping length of stay flexible where possible.
“By the same token, longer lead times enable more time to negotiate on rates so do plan trips and itineraries as far in advance as possible. There is an encouraging level of choice and availability but that can shift. To best manage this, corporates must stay agile in their approach to booking and managing accommodation and their wider travel programmes,” he added.
The full SilverDoor Market Update is available to read here.
