There still is time for resolutions and also some good guesses about what’s next. I turned to three leaders in the business travel industry to see what they expect in that realm for 2011.
Lane Dubin, vice president and general manager of global account sales for American Express, sees three areas to watch in 2011 for business travel:
Increased travel: As the economy began to rebound in 2010, rates of travel and fares approached prerecession levels. Dubin expects suppliers to gain more pricing power as corporations bring travel budgets back.
Stricter travel management: Travel managers and finance professionals will focus more on squeezing as much as possible out of travel budgets while increasing revenue.
More technological togetherness: Technology has been writing the future of business travel, with online booking tools, mobile applications, social communities and virtual meetings. Technology will continue to pressure corporations to find ways to keep travelers connected and supported before, during and after trips.
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Yannis Karmis, president of Travelocity Business, expects a healthier travel industry but both easier and more frustrating experiences for business travelers.
On the down side: Airlines are unbundling base fares to grow revenue, which makes it difficult for travelers to comparison shop. Travelers want convenient, transparent shopping experiences and the ability to buy air extras, he said.
On the plus side: Travelers want the same level of convenience and connectivity on the road as they enjoy in their personal lives. Enabling travel services via mobile devices will give travelers the service and convenience they expect and allow corporations to extend their travel programs to the road.
Frank Petito, president of Orbitz for Business, said all signs point to continued strength in corporate travel. The year 2010 will show a 4 percent increase in corporate travel once all the figures are in, according to the National Business Travel Association, and that is expected to rise another 7 percent in 2011.
“This mirrors what we’ve seen in our own corporate travel business, which saw third-quarter gross bookings grow by 32 percent year over year,” Petito said.
“From a technology standpoint, I think we’ll see more innovation … as more business travelers look to search and book trips directly from their mobile devices.”
Bottom line: The experts see business travel rising this year, and we’ll pay more for it. But ever-expanding mobile travel apps will make the process easier.
Another point of view
Though the National Business Travel Association sees 2011 as even rosier than 2010 for business travel, the U.S. Travel Association, which looks at travel overall then breaks statistics down into business and leisure, sees a different trend.
In an October update of its forecast, it predicted a 2.6 percent increase in business travel for 2011, after last year’s healthy uptick, which it reported at 4.2 percent. That 2010 figure reflects basically the same increase as seen by the business travel organization. But the U.S. Travel Association sees a slowing of business travel growth, with 2012’s rate growing only 1.8 percent and 2013 only 1.6 percent. Meanwhile, it sees leisure travel edging up after slower growth this year compared with 2010.