A joint effort by the Association of Corporate Travel Executives and the Conference Board of Canada, the report indicates the average corporate travel spend will increase 2.2 per cent, with trip frequency expected to increase by 1.8 per cent.
OTTAWA, CANADA – Incremental increases for travel expenditures and trip frequency in 2014 are the latest findings from the Canadian Business Travel Outlook Report. A joint effort by the Association of Corporate Travel Executives and the Conference Board of Canada, the report indicates the average corporate travel spend will increase 2.2 per cent, with trip frequency expected to increase by 1.8 per cent. These statistics are up 0.6 percentage points in travel spending and 1.2 percentage points in travel volume from 2013.
One of the largest growth areas of the report concerned the hotel spend:
- 51 per cent of respondents foresee hotel rates to increase by 2 to 4 per cent.
- 20 per cent anticipate hotel costs to rise by 4 to 6 per cent.
“The stronger growth reflected in the latest ACTE/CBOC Canadian Business Travel Outlook study for 2014 suggests cautious optimism that as economic conditions continue to strengthen, business travel will follow suit. The modest growth expectations of travel budgets imply that corporate travel executives will remain under pressure to contain costs and ensure that average spending per trip does not escalate much,” said Greg Hermus, Associate Director, Canadian Tourism Research Institute, The Conference Board of Canada.
Now in its seventh year, the report surveyed 73 Canadian companies and organizations, representing a conservative $820 million in annual corporate travel expenditures. More than just a statistical spend analysis, this study identifies several key trends that will affect the business travel sector throughout the year.
“There are any number of spend analysis reports that try to predict the year ahead,” said Monica Hailstone, Regional Director, Canada, Association of Corporate Travel Executives. “But business travel is about people and we strive to see what’s behind the numbers. The number of companies using social media for communication is up -by 7 percentage points. Not only is this important as a trend of traveler convenience, it shows the growing adaptation and evolution of the traditional travel program – a move towards corporate travel innovation”. According to Hailstone, the report also revealed that more than a third of companies support or provide mobile apps with another nineteen percent looking into this area. These trends allow for access to smart data which may ultimately further enhance travelers’ experiences in the future.”
24 per cent of respondents saw traditional programs at risk for compliance through changing traveler attitudes.
“Assessing the traveler experience, addressing social media and smart data, plus a whole agenda of related items is the focus of ACTE’s new Four Pillar approach to travel trend analysis. The foundation for the travel conference of the future, it gives travel managers powerful options, other than concentrating on cost containment philosophies. This year’s Canadian Business Travel Outlook Report says, ‘We are here…’ And ‘here’ is knowing what trends are for the taking and the making,” said Hailstone.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
