Business travel spend is expected to hit $310.4 billion in 2017 – and it’s only going up from there – increasing to nearly $357.5 billion in 2020, according to the Global Business Travel Association (GBTA).
If you’d like your own slice of this most tasty and profitable pie, consider promoting business travel at your hotel. In addition to the growth of the business travel industry, there are plenty of reasons why offering business travel services means more profits for your hotel.
Business travelers help cure the mid-week occupancy blues
If your hotel is typically busy on weekends and quieter on weekdays, promoting business travel at your hotel can be just the answer to boosting occupancy and average daily rate (ADR). Even better, business travel doesn’t really have an “off season,” creating a more secure revenue stream for your property.
Business travelers are loyal
Because of how often business travelers are on the road, they tend to be more loyal, returning again and again to a hotel that meets their needs. Research from Phocuswright and Acxiom revealed that four in five U.S. travelers were members of a loyalty program, and business travelers are more committed to loyalty program participation than leisure travelers.
Business travelers are staying longer
With the rise of “bleisure” travelers – business travelers who tack personal vacation time onto a business trip – the average length of stay for business travelers is increasing. And studies show that business travelers are even more likely to extend their stay if hotels offer an incentive to do so.
Business travelers are less price sensitive
Although price still matters, because companies are footing the bill, business travelers tend to be less price sensitive. They’re not as concerned about attempting to bargain down hotel rates.
Business travelers are easy to please
Business travelers typically get in late and leave early. They spend less time in their rooms which results in less wear and tear on your facilities. And business travelers are more willing to overlook an “okay” experience if your hotel provides their preferred business travel services. (More on this in our next post!)
Business travelers often need meeting space
Consider connecting with the Meetings, Incentives, Conferences and Events (MICE) industry. Hotel operators who can provide meeting space boost hotel profits by gaining revenue from accommodations and meeting room bookings.
Are you interested in offering business travel services at your hotel?