{"id":26476,"date":"2024-03-14T12:54:54","date_gmt":"2024-03-14T12:54:54","guid":{"rendered":"https:\/\/reedmackay.com\/corporate-travel-managing-travel-budget"},"modified":"2024-03-28T13:44:02","modified_gmt":"2024-03-28T13:44:02","slug":"corporate-travel-managing-travel-budget","status":"publish","type":"post","link":"https:\/\/reedmackay.com\/au\/corporate-travel-managing-travel-budget","title":{"rendered":"Planning your 2024 business travel budgets"},"content":{"rendered":"\n

How can planning business travel budgets in advance help them go further in the new financial year?<\/p>\n\n\n\n

The new financial year is almost upon us \u2013 and there’s mounting pressure on travel managers to cut spending in 2024, according to Business Travel News Europe<\/a>.<\/p>\n\n\n\n

With global business travel spending expected to surpass 2019 levels in 2024, two years sooner than forecast, according to the GBTA\u2019s Business Travel Index Outlook<\/a>, cost remains a central conversation when planning travel budgets.<\/p>\n\n\n\n

Can planning ahead deliver both cost savings and added value?<\/p>\n\n\n\n

Reed & Mackay saw that clients were increasingly booking air travel further in advance in 2023 compared to 2022. In-house data shows a 5.9% increase in clients booking air travel more than 14+ days in advance in 2023, compared to 2022, and an almost 5% drop in booking trips 0-2 days before flying. <\/p>\n\n\n\n

Furthermore, according to our latest data showcasing significant trends across the legal industry\u2019s travel bookings<\/a>, the median lead time for international bookings reached its highest point in Q3 2023, standing at 53 days. This data aligns with the industry\u2019s commitment to securing cost savings via advanced planning.<\/p>\n\n\n\n

\"Planning
Does planning ahead deliver both cost savings and added value to business travel budgets?<\/figcaption><\/figure>\n\n\n\n

<\/p>\n\n\n\n

Find the best air fares<\/strong><\/h2>\n\n\n\n

The OAG expects a \u2018continuation of the status quo in flight prices, with minor fluctuations\u2019<\/a>. This forecast is one Reed & Mackay Learning Specialist Global Fares Jo Shilling agrees with.<\/p>\n\n\n\n

\u201cAir fares should be settling down in 2024,\u201d Shilling says. \u201cThe increases we saw coming into this year came from the huge increase in the cost of fuel. The increase in fares between 2019 and 2023 was 16% and that\u2019s unlikely to happen again.\u201d<\/p>\n\n\n\n

So, with this more positive outlook on fares, why should travel managers still consider planning their business travel budgets in advance? Shilling points out that booking flights for corporate travel further ahead can deliver added value and drive business efficiency.<\/p>\n\n\n\n

\u201cWhile airlines\u2019 advance purchase fares don\u2019t have the same flexibility as regular corporate fares, they can offer huge savings. And you can book 11 months in advance for most airlines,\u201d she says. \u201cSo if an organisation is booking for conferences or meetings where dates are set, it makes real sense to book in advance. Not only will it save on costs, it takes the worry out of whether you\u2019ll get the flights you want at the right time to make those conferences and meetings, within your budget. Additionally, it\u2019s easier to book travellers\u2019 preferred seats.\u201d<\/p>\n\n\n\n

Furthermore, careful planning means if your organisation\u2019s travellers have a surprise meeting to attend that requires travel, there could be spare money in the budget to cover those eventualities.<\/p>\n\n\n\n

Shilling further advises how planning business travel budgets ahead can help with trip-batching; combining several meetings into one trip. The added value? Trip-batching can not only help with costs, it\u2019s the more sustainable choice of travel. And it can be effective for traveller wellbeing.<\/p>\n\n\n\n

\"Planning
There’s a better chance to obtain corporate rates ahead of time rather than waiting to book closer to date of travel<\/figcaption><\/figure>\n\n\n\n

<\/p>\n\n\n\n

Find the best hotel rates<\/strong><\/h2>\n\n\n\n

Last year, hotel prices, particularly in major cities, soared. And, hoteliers and analysts project corporate hotel rates to be higher than those of 2023, an analysis most buyer respondents of BTN\u2019s Annual Hotel Survey<\/a> expect too. This is partly due to that there\u2019s been no sign of slowdown in demand for travel, according to figures from hotel data specialist STR<\/a>.<\/p>\n\n\n\n

However, while hotel price increases are starting to slow down compared to 2022, says Reed & Mackay Global Programme Manager, Commercial, Slavka Gindeva, there\u2019s still a lot of pressure on those rates. \u201cInflation partly drives this. Then hotels have higher salaries and energy costs to pay, some of which pass on to the traveller. Plus there\u2019s high interest rates and leisure demand is still strong,\u201d she says.<\/p>\n\n\n\n

\u201cThey\u2019re also affected by the availability of accommodation. Where new hotels would usually have been built, this trend has stagnated over last couple of years. So there\u2019s not as much inventory. Plus, some cities, such as New York and Florence, have changed their rules around AirBnb short stays. That means more demand on hotels from the leisure market.\u201d<\/p>\n\n\n\n

All valid reasons for travel managers to start planning and booking ahead for accommodation their travellers require in 2024. There\u2019s also a better chance to obtain corporate rates rather than waiting to book closer to the date of travel.<\/p>\n\n\n\n

Demand for accommodation<\/h2>\n\n\n\n

\u201cUntil COVID-19, the majority of corporate rates with hotels were LRA. This means, until the last room sells, the hotels were obliged to provide a room for client at the agreed corporate rate. Fewer hotels offer this now,\u201d Gindeva explains.<\/p>\n\n\n\n

\u201cEvery hotel has its own revenue management system, managed by more sophisticated AI systems. So the decisions behind rates are data driven. If a hotel reaches a certain occupancy level, the systems can close availability and it\u2019s harder to get corporate rates. We encourage booking at least a couple of weeks before a business trip, to avoid the risk of unavailability.\u201d<\/p>\n\n\n\n

Demand for accommodation is also affected by several other factors. As the\u00a0events industry is expected to experience significant growth from now until 2028<\/a>, hotels will be in high demand. So another legitimate reason to plan ahead and find the best rates for your organisation.<\/p>\n\n\n\n

\"\"
Cities such as Paris can see hotel prices rising when hosting large-scale global events<\/figcaption><\/figure>\n\n\n\n

<\/p>\n\n\n\n

Then there are major events taking place in cities across the world to take into consideration when planning business travel budgets. These inevitably drive up hotel prices and availability. With the Paris 2024 Olympics Games, for example, Gindeva advises avoiding business travel that requires accommodation in the French capital<\/a> during July and August. If you must go, consider staying outside the city \u2013 but book now.<\/p>\n\n\n\n

And, with\u00a0the rise of bleisure travel<\/a>\u00a0showing no signs of slowing down, there\u2019s even more demand for hotel rooms. Plus, hybrid working is prevalent across many organisations. This generates an increase in the need for external meetings to bring workforces together. Generally, with working-from-home days likely to be either side of the weekend, Tuesdays and Wednesdays continue to be the busiest times for booking hotels. That’s for both accommodation and their meeting space. So it\u2019s worth considering booking outside those days to gain added value.<\/p>\n\n\n\n

\u201cIf companies can plan employees\u2019 travel further in advance, they should,\u201d Gindeva advises. \u201cIt\u2019s the best way to get corporate rates that suit your budget.\u201d<\/p>\n\n\n\n

Get in touch<\/a><\/p>\n\n\n\n

Mail hello@reedandmackay.com to discuss all of your travel and event management needs.<\/p>\n","protected":false},"excerpt":{"rendered":"

How can planning business travel budgets in advance help them go further in the new financial year? The new financial year is almost upon us \u2013 and there’s mounting pressure on travel managers to cut spending in 2024, according to Business Travel News Europe. With global business travel spending expected to surpass 2019 levels in… Read More »Planning your 2024 business travel budgets<\/span><\/a><\/p>\n","protected":false},"author":39,"featured_media":25211,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[168],"tags":[372,186,628,170],"class_list":["post-26476","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles-au","tag-budgets-au","tag-cost-saving-au","tag-finance-au","tag-travel-au"],"yoast_head":"\nPlanning your 2024 business travel budgets<\/title>\n<meta name=\"description\" content=\"With growing pressure on 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