After a year of disruption, business travel is poised for a strong rebound – and hotels that accommodate these are set to benefit.
Business travel was characterised by disruption last year but there is positive momentum – with 46% of companies across Europe, the Middle East and Africa planning to increase their travel spend this year, according to the Flight Centre Travel Group’s latest State of the Market survey.
Findings show that 36% of business travel customers around the world plan to raise their travel spend by as much as 20% – seeing business travel as an integral part of growth, innovation, opportunity and career development.
Meanwhile, the corporate travel landscape has changed. Booking windows have shortened, and external factors continue to impact even the best laid plans.
Some notable new routes which are set to help travel, include:
- Qantas’ new direct Johannesburg-Perth route, which cuts travel time to under 11 hours, boosting business and leisure opportunities between South Africa and Western Australia.
- LATAM Airlines’ direct Sao Paulo-Cape Town flights, launching in September this year.
- Airlink’s new Johannesburg-Nacala service from February this year, providing increased connectivity to Mozambique’s north-eastern region.
- Air France’s seasonal Paris-Cape Town route, which has been extended into May this year due to high demand.
- Air Europe’s Johannesburg-Madrid route, which could launch early this year.
Herman Heunes, GM of Corporate Traveller, South Africa, says more international carriers are expanding into underserved regions and emerging markets. “It’s good news for Africa, and we’ve seen United, Delta and Air France launching new routes to destinations like Dakar, Acra, Marrakech and Lagos”.
According to the IMF, 11 African economies rank among the world’s 20 fastest-growing economies this decade, with Senegal (projected to reach 8.8% growth last year ), Cote d’Ivoire (6.4%) and Ghana (4%) leading the charge. West Africa’s major hubs are driving growth through oil and gas, agriculture, ICT and logistics infrastructure, while Kumasi (Ghana), Lome (Togo) and Tamale (Ghana) are also playing their part – meaning business travel is on the up.
But barriers to growth include limited air access, high travel costs and visa restrictions. “Regional connectivity remains our biggest challenge,” says Heunes.
What this means is that corporate demand for business hotels should rise. Though shorter booking windows means hotels will see more late bookings, higher volatility in occupancy, and less long-term visibility. Growth will reward hotels that are agile, tech-enabled and experience-led. Hotels that benefit are likely to be ones that are leaner, faster and more strategic than before.