Huge developments in the travel industry and rise in the number of SMEs have given way to increasing business travelers traveling from one place to another.
Rise in digitization in the corporate and tourism sectors across the world has given way to increasing penetration of the IoT, thereby allowing both the travel operators and the travelers to achieve their targets just in a jiffy. At the same time, the VR technology has also paved in the scenario, offering much enhanced, effective, and customized experiences for customers, which in turn has driven the global business travel lodging market in more than one way.
Additionally, in the last few years, there’s been a steep incline in the trend of Bleisure travel, which integrates business with several pleasure essentials and doles out recreational activities to boot out stress as well as perk up work efficiency altogether. This factor has supplemented the market growth yet more.
Huge developments in the travel industry and rise in the number of SMEs have given way to increasing business travelers traveling from one place to another. Several corporate establishments are also making tie-ups with the prominent business travel organizations so as to provide personalized collaborative rooms and team-building movements, which has again turned out to be another key driving factor for the growth of the global business travel lodging market.
According to Allied Market Research, the market is projected to showcase a striking CAGR from 2021 to 2028. Keeping in line with a lot of surveys conducted in the recent years, there are around four-hundred million SMEs around the world that account for almost ninety-five percent of the global business companies. Such huge growth of the small & medium business enterprises has considerably heightened the opportunities of business travel of the mavens across the globe, which has been highly beneficial for the business travel lodging market.
Here, it’s worth stating that the outbreak of the pandemic led to either annulment or postponement of the majority of MICE events, which in turn impacted the market negatively, especially during the initial period. As per CEIR, approximately more than seventy-two percent of the listed events were called off throughout the first quarter of 2020, and it contributed to around fifteen percent loss in the exhibition sector.
In spite of the obstacles created by the pandemic and the rise in cases that followed, the travel industry has managed to prove its flair even through the challenges coming its way in the last two years. And, now as the cases have decreased, the travel industry has almost bounced back.
Following are the ways how one can craft a more chiseled-up budget for business travel.
Looking back at the pre-pandemic outlays is highly important
Company owners who have started building a corporate travel budget, reviewing and comparing the travel expenditure from the previous years is important indeed. Factors such as the number of trips the employees took, the length of their stay, places they travelled the most, average cost of lodging & air ticket, and many more should be perfectly covered through the review. Scuttling through the questions will give the team an exclusive view of your organization’s travel history, which in turn can help them formulate a more precise outline of their financial plan and guide the rearrangement of funds.
Similarly, utilizing the present to craft for the future is wise too
Your company’s 2020 and 2021 travel expenditure can also provide you with relevant information to cogitate about for your budget. Although corporate travel has been considerably less in number than that of the previous years, your recent disbursements should likely take in procuring technology that would help protect your travelers. These should comprise contactless payment options, PPE materials, and so on. One should always make up for these kinds of expenses as they fabricate your 2022 budget so that they can keep their traveling employees safe and sound.
Creating a travel policy always makes sense
A travel policy of a corporate firm tends to play a major role in ensuring that the reservations made by the traveling employees for transportation & hotels are within the budget of the company. And, while forming a travel policy for the employees, one should always take certain things, such as their budget, the travelers’ needs & safety, and different aspects of travel incidentals that the organization may remunerate for such as fuel & food, into account.
Koyel Ghosh is a blogger with a strong passion and enjoys writing on miscellaneous domains, as she believes it lets her explore a wide variety of niches. She has an innate interest for creativity and enjoys experimenting with different writing styles. A writer who never stops imagining, she has been serving the corporate industry for the last four years.