Business Travel Set to "Take Off" in 2012: Deloitte Survey

Millennials, Generation X likely to fuel growth in corporate travel

News provided by

Dec 06, 2011, 09:00 ET

NEW YORK, Dec. 6, 2011 /PRNewswire/ -- Corporate travel will likely fuel the travel, hospitality and leisure industry in 2012 as many Millennials and Generation X professionals expect to take to the road more often, according to a new Deloitte survey. Specifically, 85 percent of business travelers surveyed expect to take more or the same number of trips next year with 27 percent of 18-44 year olds expecting to take more trips in 2012, while only 16 percent of business travelers 45 years old and above are planning to take more trips next year.

Moreover, reflecting on 2011 travel activity, the majority of survey respondents (81 percent) anticipate taking more or the same number of business trips than they did in 2010. Of the 19 percent of business travelers who expect less travel in 2011, more than six of 10 (64 percent) cite the recession as the primary reason, and 14 percent say a job change.

"Corporate travel plays a key role in driving growth for the travel industry as a whole," says Adam Weissenberg, vice chairman, Deloitte LLP and global travel, hospitality and leisure sector leader.

"The results of our survey offer an encouraging sign for hotels, airlines and other service-providers."

Generation Gap May Define Hotel Preferences
The majority of business travelers surveyed feel experiences at hotels operating under the same brand name differ depending on location, with six in 10 (60 percent) noting that facilities and service quality vary widely. However, when looking at perceptions around hotel consistency among different age groups, 49 percent of respondents aged 30 and older believe hotel brands are inconsistent whereas only 39 percent of those ages 18-29 indicate the same. When considering loyalty, — nearly half (46 percent) of the 18-29 year olds say they prefer to stay at their favorite hotel brand even if it is not conveniently located, whereas 37 percent of those 30 and older do the same.

"While it's important for hotels to focus on the burgeoning number of young business travelers, finding a middle ground to retain brand loyalty among Generation X and Y, and boosting brand loyalty among the potentially more discerning baby boomers, will likely be a challenge for hotels in 2012," continues Weissenberg.

Two-thirds of respondents (67 percent) say they often work in their hotel room, with younger business travelers enjoying working in more social spaces, such as executive/business lounges and the lobby or common area. Nearly two-fifths (36 percent) of the 18-44 year olds surveyed say they often work in the lobby or common area, while only 17 percent of those 45 and older do the same. When it comes to interacting with hotel staff for check-in, almost two-fifths (36 percent) of the 18-44 respondents favor automated kiosks rather than checking in with a hotel employee at the front desk, whereas only 19 percent of the 45 and older survey participants say they prefer automated kiosks.

Travelers Prioritize Amenities and Efficiencies
Amenities continue to play a key role in the overall hotel experience, with six in 10 respondents (61 percent) expecting more from hotels with regards to amenities and services now that hotel prices have increased. As a whole, 77 percent of business travelers surveyed indicated that complimentary internet is important to them, and 63 percent are satisfied with the availability of free Wi-Fi in hotels.

The Deloitte survey also found that concerns around air travel are important, with survey respondents listing flight delays (37 percent) and security-related delays (30 percent) at airports as the leading grievances about business travel today. Additionally, respondents indicate that issues with air travel are more of a concern than hotel challenges, such as inattentive staff and lack of amenities at hotels.

About the Survey
The survey was commissioned by Deloitte and conducted online by an independent research company between September 26 and September 27, 2011. The survey polled a national sample of 1,000 business travellers and has a margin of error of +/- 3 percentage points.

As used in this document, "Deloitte" means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

SOURCE Deloitte