Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

The Business Traveler - US - July 2015

Continuing corporate profitability has boosted the business travel market, estimated to reach $234 billion in 2015. All segments of the market – including airlines, hotels, and rental car companies – have benefited as companies boost business travel spending. Heightened demand, industry consolidation, and pricing action have been advantageous for the travel market. Travel brands that reinvest profits in mobile booking tools, automated check-in, Wi-Fi connectivity, and improved work spaces can pass the benefits along to business travelers in a meaningful way.

This report looks at the following areas:

  • Heightened demand puts pricing power in the hands of industry players
  • Men and women have different expectations for business travel
  • Travelers crave constant connection

Continuing corporate profitability has boosted the business travel market. All segments of the market – including airlines, hotels, and rental car companies – have benefited as companies boost business travel spending. Heightened demand, industry consolidation, and pricing action have been advantageous for the travel market. Travel brands that reinvest profits in mobile booking tools, automated check-in, Wi-Fi connectivity, and improved work spaces can pass the benefits along to business travelers in a meaningful way.

This Report explores the frequency of business travel and the reasons for travel, as well as consumer attitudes around business travel. Business travel is defined as day or overnight trips of over 50 miles for business purposes, outside of a regular commute. Reasons for business travel may include conferences, meetings, classes, seminars, trade shows, conventions, off-site physical labor or service work, or company sponsored reward trips.

Although business travel has rebounded in an improving economy, business trips don’t look the same as they did prerecession. Business travelers have heightened expectations that they will be able to stay connected and productive at the airport, on the plane, and in their hotel rooms, leaving travel brands responsible for satisfying this demand for connectivity. Improved productivity has also enabled travelers to schedule time for leisure activities during business trips, making a hotel’s ability to provide accommodations that bridge business and leisure more relevant to business travelers than ever before.

 

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

        • The issues
          • Heightened demand puts pricing power in the hands of industry players
            • Men and women have different expectations for business travel
              • Figure 1: Very important business travel amenities – Hotel and airline, by gender, March 2015
            • Travelers crave constant connection
              • Figure 2: Business trip behaviors – Productivity, March 2015
            • The opportunities
              • Women and Millennial travelers are attractive market segments
                • The sharing economy can benefit from constrained hotel supply
                  • Figure 3: US hotel occupancy rates, 2004-15
                • Travelers mix business with leisure
                  • Figure 4: Combined business and leisure travel, by generation, March 2015
                • What it means
                • The Market – What You Need to Know

                  • Business travel market poised for growth, all segments on the rise
                    • Digital technologies augment face-to-face meetings
                      • Corporate profits drive business travel
                        • Increase in inbound international business travel
                        • Market Size and Forecast

                          • Positive outlook for business travel
                            • Figure 5: Fan chart forecast of total domestic business travel expenditures, at current prices 2010-20
                            • Figure 6: Total domestic business travel expenditures and forecast, at current prices, 2010-20
                        • Market Breakdown

                          • Airline revenues positioned to grow
                            • Figure 7: Total domestic business air travel expenditures* and fan chart forecast, at current prices, 2010-20
                          • Limited supply keeps hotel rates high
                            • Figure 8: Total domestic business travel lodging expenditures and fan chart forecast, at current prices, 2010-20
                          • Price increases to bolster rental car market
                            • Figure 9: Total domestic business car rental expenditures and fan chart forecast, at current prices, 2010-20
                        • Market Perspective

                          • Will virtual meetings replace business travel?
                            • Travelers combine business with leisure
                              • Leisure travelers look for meaningful experiences
                              • Market Factors

                                • Corporate profitability boosts travel budgets
                                  • Figure 10: Corporate profits after tax, billions of dollars, quarterly, seasonally adjusted annual rate, 2000-14
                                • Pricing action expected in all three travel segments
                                  • Figure 11: Share of adults and total adults who rent vehicles, 2004-14
                                • A strong US dollar may prompt more outbound international business travel
                                  • Figure 12: One US dollar to one Euro exchange rate, weekly, not seasonally adjusted, May 2010-April 2015
                                • Inbound international business travel grows despite strong US dollar
                                  • Figure 13: Volume of inbound international business travel, by region, 2013-14
                                • Group bookings drive hotel demand
                                  • Figure 14: Hotel occupancy rates, 2004-15
                              • Key Players – What You Need to Know

                                • OTAs aim to capture business customers, TMCs aim to keep them
                                  • Travel providers target women and Millennials as key audiences
                                    • Rising flight and hotel prices will challenge travel budgets
                                      • New developments help travelers track luggage
                                        • New business models move into the market
                                        • What’s Working

                                          • OTAs look to capture share of the unmanaged travel market
                                            • Corporate tools catch up with travel booking trends
                                              • Airlines compete for premium transcontinental passengers
                                                • Airlines reinvest in the airport experience
                                                  • Travel providers cater to professional females
                                                    • Travel brands attract Millennial business travelers
                                                    • Facing Challenges

                                                      • Overcrowding breeds disgruntled passengers
                                                        • Low fuel costs haven’t moved the needle on ticket prices
                                                          • Bad behavior could put employers at risk
                                                            • High demand leads to hotel price increases
                                                              • Figure 15: US cities with most hotel rooms under construction, May 2014
                                                              • Figure 16: Average daily rate of US hotels, 2001-15*
                                                          • What’s Next

                                                            • Luggage gets smart
                                                              • Travelers forgo packed bags
                                                                • Airlines enable in-flight networking
                                                                  • Figure 17: Delta Innovation Class to TED video, 2014
                                                                • Subscription-style travel takes off
                                                                  • The sharing economy jumps into managed travel
                                                                  • The Consumer – What You Need to Know

                                                                    • One third travel for business; conferences and meetings are most common
                                                                      • Business and leisure overlap
                                                                        • Opportunities for further automation
                                                                          • Female travelers looking for added amenities and exceptional service
                                                                          • Frequency of Business Travel

                                                                            • Business travel trending up
                                                                              • Figure 18: Business and personal domestic travel, 2006-14
                                                                            • One third of Americans travel for business
                                                                              • Figure 19: Business travel in the last three years, by gender and by age, March 2015
                                                                            • Business travel peaks at $75K-99.9K household income
                                                                              • Figure 20: Business travel in the last three years, by household income, March 2015
                                                                          • Reasons for Business Travel

                                                                            • Little variation in types of trips
                                                                              • Figure 21: Reasons for business travel, March 2015
                                                                          • Mixing Business and Leisure Travel

                                                                            • Employees combine business and leisure
                                                                              • Figure 22: Combined business and leisure travel, by generation, March 2015
                                                                          • Business Trip Behaviors

                                                                            • Business travelers remain productive on the road
                                                                              • Figure 23: Business trip behaviors – Productivity, by generation, March 2015
                                                                            • One in five find business travel stressful
                                                                              • Figure 24: Business trip behaviors – Travel concerns, by gender, March 2015
                                                                            • Employees generally satisfied with travel policies
                                                                              • Figure 25: Attitudes toward travel allowance and employer policies, by generation, March 2015
                                                                            • One third of travelers looking for networking opportunities
                                                                              • Figure 26: Attitudes toward travel companions and automation, March 2015
                                                                          • Attitudes toward Business Travel

                                                                            • Millennials more likely to avoid business travel
                                                                              • Figure 27: Attitudes toward business travel – Necessity, by generation, March 2015
                                                                            • Opportunities to create check-in efficiency
                                                                              • Figure 28: Attitudes toward business travel – Efficiency, by generation, March 2015
                                                                            • Women business travelers look to maintain routine while traveling
                                                                              • Figure 29: Attitudes toward business travel routines, by gender, March 2015
                                                                          • Important Travel Amenities

                                                                            • Women find hotel amenities an important aspect of travel
                                                                              • Figure 30: Importance of hotel amenities, by gender, March 2015
                                                                            • Women interested in real-time flight updates
                                                                              • Figure 31: Importance of airline amenities, by gender, March 2015
                                                                          • Loyalty Programs Popular With Business Travelers

                                                                            • Half of business travelers enrolled in frequent flyer programs
                                                                              • Figure 32: Frequent flyer enrollment, by traveler type, November 2013-December 2014
                                                                            • Legacy carriers attract the most business travelers
                                                                              • Figure 33: Frequent flyer enrollment, November 2013-December 2014
                                                                          • Consumer Segmentation

                                                                              • Factors
                                                                                • Segments
                                                                                  • Figure 34: Business traveler segments, March 2015
                                                                                • Reluctant Travelers (32%)
                                                                                  • Amateur Travelers (30%)
                                                                                    • Focused Travelers (21%)
                                                                                      • Road Warriors (17%)
                                                                                          • Figure 35: Attitudes toward business travel, by business traveler segments, March 2015
                                                                                      • Appendix – Data Sources and Abbreviations

                                                                                        • Data sources
                                                                                          • Fan chart forecast
                                                                                            • Consumer survey data
                                                                                              • Abbreviations and terms
                                                                                                • Abbreviations
                                                                                                • Appendix – The Market

                                                                                                    • Figure 36: Total domestic business travel expenditures and forecast, at inflation-adjusted prices, 2010-20
                                                                                                    • Figure 37: Total domestic business air travel* expenditures and forecast, at current prices, 2010-20
                                                                                                    • Figure 38: Total domestic business air travel* expenditures and forecast, at inflation-adjusted prices, 2010-20
                                                                                                    • Figure 39: Total domestic business travel lodging expenditures and forecast, at current prices, 2010-20
                                                                                                    • Figure 40: Total domestic business travel lodging expenditures and forecast, at inflation-adjusted prices, 2010-20
                                                                                                    • Figure 41: Total domestic business car rental expenditures and forecast, at current prices, 2010-20
                                                                                                    • Figure 42: Total domestic business car rental expenditures and forecast, at inflation-adjusted prices, 2010-20
                                                                                                    • Figure 43: Total domestic expenditures and forecast of other, at inflation-adjusted prices, 2010-20
                                                                                                • Appendix – The Consumer

                                                                                                    • Figure 44: Reasons for travel, 2006-14
                                                                                                    • Figure 45: Enrollment in frequent flyer programs, by type of traveler

                                                                                                Companies Covered

                                                                                                To learn more about the companies covered in this report please contact us.

                                                                                                The Business Traveler - US - July 2015

                                                                                                £3,199.84 (Excl.Tax)