CORPORATE LODGING MARKET REPORT 2024

The forecasted growth across different regions underscores the importance of adaptable and region-specific strategies. The surge in travel in North and Latin America contrasts with Europe’s more cautious optimism, suggesting that corporate travel managers should customize their strategies accordingly.

A new wave of business travelers is emerging, bringing with them fresh expectations. The anticipated growth in business travel is poised to be propelled predominantly by younger cohorts, with 53% of Gen Z and Millennials expecting to travel for work in 2024, compared to 38% of Gen X and 26% of Boomers.

The resurgence of in-person meetings is undeniable, challenging travel managers to effectively integrate them into corporate strategies amidst rising costs. According to the International Congress and Convention Association (ICCA), there was a significant increase in business events worldwide last year, with a 349% rise to 10,602 events, 85% of which were in-person. Additionally, the average expense per attendee per day rose by 9% over the last two years, as reported by GBTA/ CWT. This includes an 8% increase in Accommodation Daily Rates (ADR) and a 9% rise in average Food & Beverage (F&B) costs.

The corporate travel ecosystem has grown more complex with the addition of new categories like meetings, ground transport, food & beverage, and co-working spaces. Reliance on Global Distribution Systems (GDS) and their suppliers can limit the ability to fully optimize travel processes. Manual and offline procedures slow down the adoption of new opportunities and efficiency improvements.

The move towards remote and hybrid work requires a fresh approach to planning corporate engagements. In the US during 2023, only 12.7% of employees worked from home (‘WFH’), while 28.2% were in hybrid roles, making up 40.9% of the workforce. By 2025, the 22% of the workforce is expected to work from home, with more than 50.2% of employees adopting hybrid or fully remote roles.