How is business travel picking up?
At Uniglobe Travel South Asia, we are witnessing a robust revival in business travel, surpassing our pre-COVID levels. Our experience reflects broader industry trends, where sectors such as Pharma, consulting, Manufacturing, and IT have increasingly recognized the value of in-person engagements. From a Business Travel Recovery standpoint; our data indicates a significant uptick in corporate bookings. Holding a niche in the MSME market, these companies are prioritizing travel to strengthen client relationships therefore ramping up their travel initiatives. This resurgence underscores a renewed commitment to personal connections, which are crucial for closing deals and fostering collaboration.
Some major trends in Indian generated traffic?
We have noticed a marked shift toward domestic travel, driven by a desire for short getaways that combine business and leisure. Insights from our partnerships with local tourism boards reveal that destinations like Goa, Bangalore, Jaipur, Kolkata, and Udaipur are seeing a blend of corporate retreats and leisure stays. We are adapting our offerings to meet this demand for customizable travel experiences, ensuring that we cater to the diverse needs of our clients.
How is incoming overseas travel happening as we close 2024?
As we approach the end of 2024, incoming overseas travel to India is witnessing a positive trend, fuelled by improved connectivity and India’s growing appeal as a business and tourism destination. The number of international arrivals is expected to reach 90% of pre-pandemic levels, particularly from countries like the USA, UAE, and Australia, with travellers drawn to India’s rich cultural heritage and business opportunities. The recent G20 Summit has positioned India as a pivotal destination for business tourism. We are also actively working with various stakeholders to streamline the travel experience for international visitors, enhancing accessibility and convenience.
And different trends from what we witnessed before 2019?
The landscape of travel has shifted dramatically since 2019. Here’s how –
There’s a growing emphasis on a reliable support / human assisted travel programs.
An ask in experiential travel, where corporate clients seek authentic local experiences rather than just standard itineraries.
Technology / Digital Transformation adoption is significant, where there is a great focus / shift of focus on efficiencies.
A hybrid set-up like that of a combination of human assisted plus online booking tools is what the new ask & push towards adoption is.
A bit of a shift by few corporates where they are focusing on employee wellness, integrating leisure with business trips termed as Bleisure; a trend that was less emphasized before 2019.
When it comes to packages, we have seen and therefore prioritized the integration of ‘cultural’ and ‘culinary’ experiences into our packages, aligning with the evolving preferences of today’s Uniglobe travellers.
Is there any shift towards extended business travel on the side?
Absolutely! The trend of extending business trips for leisure purposes is gaining momentum, with many employees now utilizing this time to explore new destinations. Reports indicate that around 60% of business travellers now extend their trips for personal enjoyment, reflecting a shift in mindset where work-life balance is prioritized. This trend is particularly evident among millennials and Gen Z professionals. We at Uniglobe Travel also encourage this practice, as it not only enhances employee satisfaction but also strengthens their connection to the places they visit, creating a more holistic travel experience. As mentioned earlier, Bleisure is the new buzz for a lot of business travellers.
How is Indian outbound business travel shaping? To which countries? Is visa a problem?
Indian outbound business travel is on the rise, with destinations like the USA, Singapore, and European Countries such as – the UK, France, Germany, Austria, Switzerland, Spain, Portugal being particularly popular. While visa processes can be challenging, we have forged partnerships with visa facilitation services to streamline the application process for our clients. This collaboration allows us to provide a smoother travel experience, positioning us as a trusted partner in their travel journeys.
Having said that, there are still challenges for Schengen countries, US to name some where appointments and turnaround times are not the same. This does dampen the business + leisure trips, both.
Any marked changes in choice of carriers for Indian business?
There’s a notable preference shift towards airlines that offer enhanced safety protocols and superior customer service. Full-service carriers are regaining Favor, especially for long-haul travel, as business travellers prioritize comfort and amenities. Airlines are also adopting flexible cancellation policies, appealing to corporates focusing on risk management. And we are strengthening our partnerships to ensure our clients have access to the best travel options available. This includes negotiating favourable corporate rates, offering omni-channel access to Uniglobe travellers for both private and publicly available fares across different regions, and assisting them maximize the loyalty program benefits offered by the airlines and hotels.
The Indian skies are in a state of a duopoly, with TATAs having to revamp this space, a lot is expected to happen which should also drive some consumer preferencing & better experiences as such.
How is cost control different?
Cost control measures have evolved, with companies emphasizing “value” over mere cost-cutting. There’s an increased focus on negotiating corporate rates with airlines and hotels, as well as using travel management tools to optimize budgets without compromising quality. We are utilizing cutting-edge technology solutions throughout the entire process—from search and booking to approval and real-time expense tracking and reporting. This enables us to deliver valuable insights to our clients, helping them effectively manage their travel budgets while ensuring they receive top-notch service. There is certainly an ask for “Value Added Service(s)” as opposed to a very strict transactional relationship. We are not there yet, we continued to be paid under par with respect to other countries, however, we are on the right track; more to watch this interesting space.
How is the corporate world spending on their travel accounts?
As corporate travel budgets continue to expand, companies are increasingly investing in enhanced travel experiences that prioritize safety and employee satisfaction, with reported increases of 15-20% from last year. Organizations are not only allocating funds for travel but are also emphasizing employee wellness and sustainable options. At Uniglobe Travel, we are dedicated to aligning our offerings with these values by integrating eco-friendly practices into our travel solutions. Recent surveys indicate that businesses are directing around 15-20% more towards travel budgets compared to the previous year, focusing on sustainable experiences that align with their corporate social responsibility goals. Having said that, there is an expectation to provide more efficiencies, therefore we run by a philosophy “how to do more with less” to bolster the confidence of corporates and not merely reduce travel budgets.
Future Focus: Collaboration and Technology
As we look to the future, we strongly believe that collaboration among Travel Companies will define the next era of the industry. Establishing strategic partnerships, joint ventures, and global affiliations is vital for expanding reach and enhancing capabilities. Such collaborations will empower owner-driven, single-location travel companies to pool resources and access advanced systems, innovative tools, and comprehensive training programs. This collective strength will enable them to operate more efficiently and cost-effectively, ultimately enhancing service delivery for clients.
Moreover, embracing ‘cutting-edge’ travel technology is essential for minimizing servicing costs and facilitating tailored service delivery. At Uniglobe Travel, we are dedicated to investing in these advancements to meet the unique needs of Uniglobe travellers while remaining agile in a rapidly evolving market. And any unaffiliated agency would only benefit from the power-of-one right from technology to our bespoke consulting to make quantum leaps in their business.
In conclusion, the travel industry is on an exciting trajectory, and at Uniglobe Travel South Asia, we are committed to leading this evolution through innovation, collaboration, and a steadfast commitment to exceptional service developed over two decades of operations in India. The Indian travel landscape is also undergoing a significant transformation, driven by changing traveller preferences and a resilient corporate sector. With a renewed emphasis on experiences, flexibility, and sustainability, the future of travel in India looks promising. This dynamic environment not only inspires travel companies but also opens new avenues for growth, fostering a vibrant ecosystem for all stakeholders involved.