THE NEW FACE OF BUSINESS TRAVEL

Transcription

1 THE NEW FACE OF BUSINESS TRAVEL UNPACKING AND REDEFINING THE DO-IT-YOURSELF (DIY) BUSINESS TRAVELER Brought to you by in celebration of National Business Traveler Day

2 CONTACT INFORMATION The Upside Travel Company, LLC. 1 Thomas Circle NW, 8th Floor, Washington, DC Inquiries: media@upside.com Phone: If you wish to use data from this report, please source the report using the following guideline: Copyright 2018 The Upside Travel Company, LLC. All rights reserved. ABOUT NATIONAL BUSINESS TRAVELER DAY National Business Traveler Day (NBTD) is an annual event held on April 24th that celebrates, honors, and recognizes the under-appreciated business traveler. More than 20 leading companies support the inaugural NBTD and will shower business travelers with prizes, giveaways, upgrades, and live events in select airports nationwide. ABOUT UPSIDE BUSINESS TRAVEL Upside Business Travel is the first online travel service built just for business travelers, particularly the doit-yourself (DIY) business traveler who can t access special corporate pricing or quality customer service. Upside uses big data to make buying business travel easier. By showing great prices, the best flight times, and the most convenient hotels, Upside lets business travelers select what works best for them, including rental cars and ride-sharing services like Uber. Most importantly, Upside doesn t disappear once the trip is booked. Human customer service provided by trained Navigators stays involved every step of the way, and is available on-demand 24x7 through mobile app, phone, or . Launched in January 2017, Upside is led by Chairman Jay Walker, the founder of Priceline, and an executive team of travel industry inventors and entrepreneurs. The company recently received Glassdoor s Employees Choice Award as one of the Top 50 Companies to Work For in America, and is headquartered in Washington, D.C., with offices in Stamford, Connecticut. Copyright 2018 The Flexible Travel Company, LLC. All rights reserved.

3 METHODOLOGY Upside conducted an online survey of DIY business travelers across the United States using Survey Monkey s available mailing list. A total of 4,576 responses were received between February 28, 2018 and April 11, Based on the net responses received and a 95% confidence level, we estimate <1% margin of error. A DIY business traveler is defined as a person who travels for business, is responsible for making their own bookings, and is not required to use corporate-sponsored travel solutions software or services. This was determined using several validation questions: Do you book your own business trips, or does someone else book them for you? Respondents who answered, I do not travel for business or someone else books my business trips for me were removed. Are you required to use corporate travel software? Respondents who answered, yes, on every trip were removed. In addition to validation questions, several other factors were taken into consideration. Non-responses and partial responses were removed from the final survey results. Survey results were weighted using demographic data in order to better represent the DIY business traveler population. The population parameters used for weighting in this survey were: gender by age and region. Report Disclaimer This report has been prepared in good faith on the basis of information available at the date of publication, without independent verification. Upside does not guarantee or warrant the accuracy, reliability, or completeness of the information in this publication and will not be liable for any loss, damage, cost, or expense incurred or arising by reason of any person using or relying on information in this publication. THE NEW FACE OF BUSINESS TRAVEL PAGE 3

4 SECTION 1: KEY FINDINGS DIY BUSINESS TRAVELERS COME IN ALL SHAPES AND SIZES Business travel is booming. In spite of a myriad of technologically based alternatives, including teleconferencing options on every smart phone, traveling for business continues to be a key activity for companies large and small. Last year alone, there were over 514 million business trips taken, with a total economic impact of $424 billion, or 3% of America s GDP. 1 By comparison, the economic impact of business travel is roughly equal to that of the entire domestic auto industry, which of course begs the question: who exactly is doing all of that business traveling? When it comes to the Road Warrior, traditional stereotypes die hard. For many, the mere words bring to mind the road-weary, middle-aged salesman dutifully hitting the road in search of new customers. But things have changed. A number of trends have converged to impact the profile of the business traveler in Among them: Younger business travelers are on the rise, with the most frequent travelers just as likely to be under 45 years old as over 45 years old. There are more women on the road than ever before up to nearly half of all business travelers. Business travelers are finding ways to enjoy their trips, with 50% extending trips to add in some leisure activities. Only 3.4% of business travelers report that they do not enjoy traveling for business at all. The majority of DIY travelers book their trips on desktops/laptops, although younger travelers are WHEN IT COMES TO THE ROAD WARRIOR, TRADITIONAL STEREOTYPES DIE HARD. increasingly gravitating to mobile. Price remains the top purchase driver among older travelers (45+), while more frequent travelers are more interested in airline and hotel points than in the lowest price. The bottom line when trying to understand today s PAGE 4 THE NEW FACE OF BUSINESS TRAVEL 1. All statistics from Trends of the GBTA Convention 2017 (Rep.) (2017). Retrieved

5 business travelers is that there is no single group or image that represents them. They are more diverse than ever. This report introduces four key cohorts that help portray the new face of today s business traveler. COHORT 1: RISING STARS WOMEN Rising Stars are comprised of women primarily years old who take 1-2 business trips a year. Women business travelers as a group are significantly younger than their male counterparts. They value information about what to expect and what to do in their destination cities. They shop around for booking options and are more likely to be dissatisfied with their current booking option, with poor customer service being a primary reason. THE BOTTOM LINE ABOUT TODAY S BUSINESS TRAVELERS IS THAT THERE IS NO SINGLE GROUP OR IMAGE THAT REPRESENTS THEM. COHORT 2: POWER TRAVELERS Power Travelers travel times a year for 3-8 days at a time. They can be young or older, with an age range of years old. Power Travelers value smooth, glitch-free travel. Surprisingly, even with all the miles, they enjoy business travel even more than the average DIY traveler. Power Travelers value points and perks over price. They care about quality of travel suppliers above all else, and dislike booking websites that they find difficult to maneuver. COHORT 3: LUXURY TRAVELERS Luxury Travelers are primarily 45+ years old and earn over $100K annually. They travel for business 3-4 times per year. Luxury Travelers extend their business trips for leisure more than any other group. They value having options of vendors and service when they shop for travel. They care far more about air and hotel points than they do about price. They value smooth, glitch-free travel, and tend to be loyal to whatever website they book their travel on. COHORT 4: ROAD VETERANS Road Veterans represent the largest single cohort of business travelers. They are primarily 60 years old and up and travel 5-8 times a year. Surprisingly, 56% are women. Road Veterans are less likely to extend trips for pleasure and care less about leisure activities in general in their destination city. Price is the most important factor for them when selecting a business trip, though they also value airline and hotel points. Road Veterans are willing to shop around on multiple travel websites to get the best deal. THE NEW FACE OF BUSINESS TRAVEL PAGE 5

6 SNAPSHOT THE NEW FACES OF DIY BUSINESS TRAVEL RISING STARS - WOMEN I comparison shop for the best value, and am at my best when I plan ahead. I need customer service that s with me every step of the way. 1-2 trips a year Median age range of years old Book trips on desktop, phone, or tablet POWER TRAVELERS I travel for business frequently, and I m always looking for quality service. I want points and perks, they re what make business travel worth it for me trips a year Median age range of years old Book trips on desktop LUXURY TRAVELERS I book my business travel the same way, every time. That s because I value speed and ease of booking over all else. If I can, I stay a few days extra at my destination to enjoy the trip. 3-4 trips a year Median age range of 45+ years old Book trips on desktop ROAD VETERANS I need to know I am getting a good deal on my business travel. Even though I like the air and hotel points, I don t want to waste my company s money. 5-8 trips a year Median age range of 60+ years old Book trips on desktop PAGE 6 THE NEW FACE OF BUSINESS TRAVEL

7 SECTION 2: PERSONAS MEET TODAY S BUSINESS TRAVELERS THE NEW FACE OF BUSINESS TRAVEL PAGE 7

8 MICHELLE, A RISING STAR Meet Michelle, a Rising Star. She s 36 years old and takes 2 business trips a year. I m young and I m on the rise. Women are significantly younger than their male DIY business traveler counterparts. Average age for male travelers is between 45-60, while women are in the range. I care about my leisure options. When traveling for business, 32% of women as compared to 23% of men want to know about attractions, restaurants, bars, museums, etc. at their destination. I expect proactive notifications while on business travel. 80% of women think having smooth, glitch-free business travel is extremely important. They are much more concerned about having a solution that tells them about weather and traffic in their destination city. Comparative shopping is my middle name. 60% of women shop around when booking business travel, which explains why women take 13% longer to book travel than their male colleagues. PAGE 8 THE NEW FACE OF BUSINESS TRAVEL

9 BRIAN, A POWER TRAVELER Meet Brian, a Power Traveler. He s 40 years old and takes 16 business trips a year for an average of 6 days each. Age is just a number for me. Among age groups, younger travelers are just as likely to be Power Travelers as older travelers. The more often I travel, the less likely I am to add some leisure to my trip. People who travel between times a year are less likely to extend their business trips for leisure than people who travel less often. The general population has a 50/50 split, while only 36% of those who travel 13+ times a year say they extend their trips. employer-mandated booking software. 60% of Power Travelers use one website when booking travel, and they are slightly more likely to rate their satisfaction with the website they book on and its customer service higher than other websites. Power Travelers want to see more choices and fast booking when using a travel booking website. If something goes wrong, give me a perk. On their wish list, Power Travelers want to see alternative options ready when a flight is cancelled and access to VIP lounges while waiting for their new flight. Points and quality suppliers are what makes travel worth it. Price is less important for me. 84% of Power Travelers say they care about air and hotel points more than they care about price or value. Quality of suppliers was the most important thing to Power Travelers, while price was most important to all other groups. I expect a seamless business trip, every time. A smooth, glitch-free business trip is extremely important to Power Travelers (87%). I m so good at traveling for business, I actually enjoy it. Power Travelers enjoy traveling for business more than the average DIY business traveler. The one website I use to book my travel is fast and easy to maneuver. Power Travelers biggest headache is booking on websites that are difficult to maneuver and using THE NEW FACE OF BUSINESS TRAVEL PAGE 9

10 PETER, A LUXURY TRAVELER Meet Peter, a Luxury Traveler. He s 49 years old, makes $100K+, and takes 3-4 business trips a year. If I have the option, I will extend my business trip for leisure. Luxury Travelers are 15% more likely to extend their trips for leisure. It s all about the points for me. Luxury Travelers care twice as much about air and hotel points than they do about price. Mess up my business trip, and I ll never use your service again. Luxury Travelers care significantly more about smooth, glitch-free travel than those who make less money (83% compared to 67%). Give me options, all of the options. Luxury travelers want options of vendors and service when they shop for business travel. Once I find a go-to solution, I stick with it. Luxury Travelers care about the speed and ease of the website they book travel on. They tend to book on the same site and do not shop around, despite being more likely to rate the site they shop on and the customer service it offers lower than the general population rates them. I respect the company dime. Despite earning more, Luxury Travelers don t make vastly different decisions than less wealthy groups because they are using employer money for business travel. PAGE 10 THE NEW FACE OF BUSINESS TRAVEL

11 LISA, A ROAD VETERAN Meet Lisa, a Road Veteran. She s 62 years old and takes 7 business trips a year. I do not fit the typical business traveler mold. Road Veterans are 56% women and older than the overall DIY traveler universe. I m ready to get down to business. Road Veterans are less likely to extend business trips for pleasure (46% of the time, compared to 51% for the general DIY traveler population). They also tend to care less about attractions, restaurants, and bars in their destination city. It s all about the price for me. Road Veterans are more likely to list price as the most important factor when selecting a business trip. I shop around to get the best deal. 57% of Road Veterans shop around when booking travel. They list the most stressful part of travel as not being able to find a broad range of options. I still want my points. Road Veterans still want their points for both air and hotel, despite wanting the best price on their travel. My friend, the solopreneur, will be returning later than me. Solopreneurs have very similar habits to Road Veterans when booking business travel, with two exceptions: they extend trips and want to see all the local sites. Nearly all surveyed solopreneurs elect to extend their business trips for pleasure (twice that of the general population). THE NEW FACE OF BUSINESS TRAVEL PAGE 11

12 A NOTE FROM JAY WALKER CHAIRMAN, UPSIDE BUSINESS TRAVEL AND FOUNDER OF NATIONAL BUSINESS TRAVELER DAY Few people realize it, but the U.S. economy largely runs on the efforts of an army of incredibly hardworking professionals who make 514 million domestic business trips a year. That s over 25 million business travelers out there every day hustling on planes, trains, and automobiles. Yet despite driving a $424 billion domestic business travel sector (roughly the size of the domestic auto industry), we haven t really known who these people are. If you visualize business traveler as an older guy in a suit, clutching his briefcase, then your stock of mental images needs some serious updating. Today s business travelers are statistically about as likely to be women as men. And, today s business travelers are as likely to be Millennials as Baby Boomers. They come in all ethnicities, too. Regardless of age, sex, race, or other demographic factors and despite their huge economic importance business travelers rarely get their due appreciation. Happily, that changes in a big way on April 24th with the first-ever National Business Traveler Day! There are more than 25 million of you heroes, and we salute you one and all. LEARN MORE ABOUT NATIONAL BUSINESS TRAVELER DAY AT NBTDAY.COM LEARN MORE ABOUT UPSIDE BUSINESS TRAVEL AT UPSIDE.COM