We take a closer look at the latest CVENT Travel Manager Report – European edition 2023. What are the key findings from the report, and most importantly, what does it mean for the European and Polish MICE industry in the near future?
The Changing Landscape of Corporate Travel: Insights from the CVENT Travel Managers Report – European Edition
In the wake of the tumultuous journey through the COVID-19 pandemic, the corporate travel landscape in Europe is undergoing a transformation. The 2023 Cvent Travel Managers Report for Europe, conducted in collaboration with Censuswide, delves into the shifting priorities, concerns, and strategies of travel managers as they navigate the ever-evolving realm of business travel.
The report sheds light on the new normal, where cost concerns, negotiation tactics, and sustainability considerations are taking centre stage.
Cvent commissioned Censuswide, an independent research company, to survey 604 corporate travel decision-makers in the United Kingdom, France, Germany, Spain, Italy, and the Netherlands, between 12th April and 26th April, 2023
Embracing the New Normal: Navigating Post-Pandemic Business Travel
Three years ago, the world was grappling with uncertainty surrounding the future of business travel. Today, corporate travel managers exude optimism as travel volume climbs back up, breathing life into face-to-face interactions and rekindling the essence of business travel. However, the landscape is far from ordinary as a range of challenges, from economic headwinds to climate change, are now reshaping corporate travel sourcing across Europe.
While the spectre of COVID-19 still looms over travel decisions, it’s noteworthy that the rising costs have emerged as the primary concern for travel managers. A whopping 65% of decision-makers cite escalating costs as their top consideration, overshadowing the 23% who continue to be affected by the pandemic. This shift in priorities underlines the pressing need for cost-effective solutions and collaborative approaches to tackle the new economic challenges.
Affordability at the Forefront: Creative Strategies for Budget Management
Rising costs have prompted corporate travel managers to adopt innovative strategies to stretch their budgets without compromising on quality. Anticipated budget increases are on the horizon, with 77% in the Netherlands and 73% in France expressing optimism. This surge in budget allocation is a positive sign for the industry, reflecting renewed confidence in the value of business travel.
To optimise their resources, travel managers are exploring diverse avenues. Integrating business travel with existing meetings and events is a favoured approach, with 40% of respondents endorsing this strategy. Furthermore, nearly a third are poised to negotiate for lower hotel room rates, even if it means sacrificing convenience. The dynamic nature of these tactics underscores the adaptability and resilience of travel managers in the face of evolving circumstances.
Navigating the Negotiation Maze: Insights into Hotel Discussions
Unveiling the intricacies of the travel sourcing and RFP process, the report reveals that cost negotiations with hotels remain a complex task for corporate travel managers. Over a third (37%) express difficulty in these negotiations, with France and Germany registering even higher figures at 40% and 42% respectively. Beyond costs, factors like proximity to company premises, flexibility of terms, and technological engagement play pivotal roles in shaping travel managers’ decisions.
Technology as a Catalyst: Evolving Decision-Making Post-Pandemic
The pandemic has catalysed a change in decision-making paradigms for corporate travel managers. In comparison to the pre-pandemic era, cost awareness has taken precedence, with 33% favouring flexible rate strategies and cost savings over traveller convenience. This shift is mirrored in the increased utilisation of technology for hotel research, as 33% of respondents devote more time to using technology tools.
Business travel decision-makers seek a diverse range of information sources to plan their programs effectively. Hotel information, recommendations from peers, and a variety of online media platforms contribute to a well-rounded decision-making process. Sustainability has also emerged as a key consideration, with nearly a third of respondents valuing sustainability initiatives during the sourcing process.
Optimism Amid Uncertainty: The Future of Corporate Travel
Despite the myriad challenges posed by rising costs and lingering pandemic effects, a resounding 80% of respondents hold a positive outlook for the current state of business travel. This optimism is especially pronounced in Italy, where 92% of travel managers are bullish about the prospects. Amid this positivity, there is an expectation of increased travel volume, with 64% anticipating growth in 2023.
Yet, a degree of caution remains, with 31% of respondents believing that travel volumes may never fully return to pre-pandemic levels. A blend of global and regional sourcing strategies reflects a nuanced approach to travel planning, wherein 51% of managers source globally, while 24% restrict their search to Europe only.
In conclusion, the 2023 Cvent Travel Managers Report for Europe paints a vivid picture of a corporate travel landscape in flux. As the business world adapts to new economic realities and navigates through a post-pandemic environment, cost efficiency, negotiation prowess, and sustainability considerations emerge as the guiding lights for travel managers. With technological tools at their disposal and unwavering optimism in their hearts, travel managers are leading the charge in redefining the future of corporate travel in Europe.
What is CVENT?
Cvent is a global technology company that specialises in event management, meetings, and hospitality solutions. It offers a comprehensive suite of tools and platforms that help businesses and organisations plan, manage, and execute various types of events, ranging from small meetings to large conferences and conventions.
The company has established itself as a prominent player in the event management and hospitality technology space, serving clients across various industries, including corporations, associations, universities, and more. Find out more.
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