Domestic business travel is set to expand faster than international travel in the next five years
As business confidence increases, many firms are looking for ways to keep hold of their cost-effective approach while still expanding and seeking out new business and clients. The truth is that saving money while still being adventurous and actively looking for ways to expand a firm is attractive. It means in the future, business will be operating slightly differently.
Nowhere has felt the force of the shift quite as strongly as business travel. Both international and domestic travel has reduced while companies cut their outgoings. Yet now business confidence is returning after the downturn, with the British Chambers of Commerce this week reporting the highest levels of confidence amongst small and large firms since 2007.
So how are business attitudes changing? One element to examine is travel as it is a useful indicator for measuring where firms are looking for growth and expanding their profile and portfolio. Euromonitor conducted a survey of business travel trends up to 2017 and their report shows that corporate firms are looking to change the way they incorporate travel into their businesses.
Domestic travel is set to grow at a faster pace than international travel over the next five years. The number of businesses travelling globally is set to hit a steady figure of 4% growth. Also it will be highly focused and strategised. International travel will shift towards emerging markets – where there is a greater opportunity for rapid growth – and what are described as “specific business opportunities” so perhaps conferences or trade fairs where there is an increased chance of walking away with a full order book.
The boom in domestic travel is seen as an effective way of cutting costs as well as exploiting opportunities within a business’ own region before moving outside of it.
The largest travel market in the world is western Europe with a 37% share of all international arrivals. Rapidly come up behind it is Asia pacific with a 29% share of the market. Much of the arrival happens in London as it is seen as a gateway to the UK and to wider Europe, largely because of its reputation as a financial powerhouse.
This international reputation of London will bode well for its business travel industry as these new trends take shape. For a company like Clarendon Serviced Apartments - which has apartments all over the capital and seeks to attract individuals and businesses looking for a cost effective alternative for a long term visit – it means there is an opportunity to grow within the domestic as well as the international market.
Improved infrastructure around the UK makes it easier for firms in the north, east and west of England, Scotland and Wales to come and do business in the capital. It is an easy way of tapping into growth and securing new business. A flexible and cost-effective solution like a serviced apartment makes it easier to seize the opportunity of growth without an expensive outlay.
Similarly, London’s reputation as a global hub could mean that those looking to exploit the opportunity in emerging markets might look at the UK as a halfway house. An American businessman looking to foster a connection with an Indian firm might think it is simpler if the two meet and do business in London – a halfway post for both. London becomes a global doorway to these international marketplaces. The capital’s excellent transport connections means it is a useful stopping point for firms travelling around the globe.
Clarendon Serviced Apartments is able to cater for all business travellers, whether they are from England or other destinations across the world. We have a range of locations across London from the City, Canary Wharf, South West London and the West End to suit all business travellers’ needs.