This travel preference for small and medium-sized businesses is surprising

Business travel can be expensive and represents a significant part of the annual spend of small and medium-sized enterprises (SMEs).

However, a survey by Corporate Traveler found that business travel managers are not as focused on the bottom line as you might expect. When Corporate Traveler – part of the leading business travel organization Global Business Travel Association (GBTA) – asked 300 SME travel managers across the US to name their top priorities when it comes to booking travel for employees, only a small percentage reported cost savings as their primary concern.

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Surprisingly, more than 40% of respondents said “traveller safety” was their top priority, followed by cost savings, which was prioritized by just 19% of respondents.

Business travelers want access to technology

Eleven percent of respondents rated traveler experience as most important, and another 11 percent rated technology integration as a priority. Policy compliance was important to eight percent of respondents, and sustainability mattered most to five percent. Companies spending less than $1 million in annual travel expenses were more likely to rank saving money as a top priority.

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“At Corporate Traveler, we’ve always prided ourselves on our ability to keep our finger on the pulse of the industry, which helps us best meet the needs of our clients,” John Van den Heuvel, president of Corporate Traveler USA, said in a statement. “So, as the world of business travel continues to evolve, we’re delighted to have partnered with the GBTA to develop this report, which reflects the true voice of today’s business travelers and the SME community across the country.”

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Survey respondents also noted that business travel expenses remain a significant cost for SMBs, which is why companies are testing various strategies that can help achieve cost savings.

Two-thirds of companies surveyed say they are implementing budget-friendly options (65%), while more than half of companies are working with travel management solutions (52%). Additional strategies include reviewing and strengthening policy adherence (43%), negotiating smaller contracts with suppliers (42%), or reducing employee travel (35%).

An airplane is seen on an airport runway. Business travel has returned to pre-pandemic levels.

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Traveling to expensive cities makes cost savings difficult for companies

A noted obstacle to cost savings is that many business trips are to expensive/high-cost areas, including San Francisco, New York, and Las Vegas. Forty-five percent of respondents said employee behavior can make it difficult to save money, as some employees prioritize comfort or convenience over savings when on the road. Additional surcharges and fees, such as checked baggage, priority boarding or hotel room services, often present additional challenges.

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The continued change in the way travel is approached led the majority (71%) of survey respondents to indicate that their companies are currently evaluating a travel management company (TMC). A TMC is a travel agency specialized in organizing corporate travel for companies of all sizes.

“The data shows that business travel is a substantial contributor to the health of the U.S. economy and therefore a key driver for the global economy,” said Suzanne Neufang, CEO of GBTA, the parent company of Corporate Traveler.

“Business travel supports millions of jobs and generates billions in tax revenue, which is why it’s important that policymakers consider the impact on the industry when developing economic policy – ​​and that sustainable solutions are prioritized, funded and developed to help us reduce travel. the most difficult sectors to mitigate,” Neufang added in a June 2024 statement.

The Corporate Traveler survey was conducted online between June 17, 2024 and June 20, 2024. Target respondents were business travel decision makers at US SMBs across the country, including administrative and executive assistants, HR staff, CEOs , and corporate travel managers. All US regions were represented in the survey.

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