U.S. Corporate Travel: Market Sizing and Trends

U.S. Corporate Travel: Market Sizing and Trends Published March 2016 Analyst: Charuta Fadnis

 

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Corporate travel in the U.S. has seen a steady resurgence over the past few years as the economy left the recession in the rear view mirror. Recently the conversation within the business travel industry has been dominated by changing consumer behavior and technological innovation. Travel policy, once dictatorial in nature, is morphing into a softer version of itself where travelers' behavior exerts more influence than ever. Their reliance on smartphones has resulted in mobile turning into the cornerstone of every strategy, T&E are intricately linked, and new concepts like Open Booking are gaining acceptance.  

Phocuswright's U.S. Corporate Travel Report: Market Size and Trends provides a comprehensive view of the state of the managed travel sector in the U.S. It includes complete market sizing and forecasts, along with the key metrics and dynamics that will shape the arena through 2017. The report also identifies a range of technology-centered trends that are significantly impacting the corporate travel distribution landscape.

Key topics include:

  1. Corporate travel market sizing (with projections through 2017), including proportion of total U.S. travel market and comparison to leisure/unmanaged business travel
  2. Online penetration and the use of online booking tools in the corporate travel marketplace
  3. Intermediary versus supplier-direct bookings, with projections through 2017
  4. Corporate travel spend across key expense categories – air, hotel, car rental and rail – along with key priorities through 2017
  5. Online booking tools and key U.S. corporate travel technology trends, including: Open Booking, enhanced reporting solutions, traveler tracking services and more
  6. Travel management priorities and traveler behavior

With its detailed assessment of the U.S. corporate travel landscape – including market sizing, analysis and technology trends – Phocuswright's Corporate Travel Report: Market Size and Trends is an essential resource for corporate travel buyers and suppliers.

  • Introduction
    • Definitions
    • Methodology
      • Market Sizing
      • Managed Traveler Survey
      • Travel Manager Survey
      • Industry Executive Interviews
    • Key Findings
      • Size of the Market
      • Survey Findings
      • Trends
  • Size of the Market
    • U.S. Total and Corporate Travel Market
    • Online and Offline Managed Travel Market
    • Intermediary vs. Supplier Direct Share
    • Segment Size and Growth
    • Online Booking Tools
  • Travel Management Priorities and Traveler Behavior
    • Strategic Priorities
    • Technological Priorities
  • Managed Travel Trends
    • Distribution Trends
      • Intermediaries rejoice – Ancillary distribution is (almost) here!
      • Try, try and try again – Suppliers continue to plug away at direct distribution
      • TMCs go beyond travel
      • Corporate travelers take a ride
    • Technology Trends
      • The future is (still) mobile
      • End-to-end T&E is here
      • An Uphill Climb for Open Booking
      • A Payment Revolution is Coming
      • Savings Postbooking? Yes, Please
      • Data Will be King
  • Conclusion
  • Partner
  • Sponsors

This report synthesizes information from four key components:

  1. Market sizing
  2. Managed traveler survey
  3. Travel manager survey
  4. Industry executive interviews

Market Sizing
This report sizes the total corporate travel market in the U.S. and includes the value of bookings made through online and offline channels, including supplier-direct channels and intermediaries such as travel management companies (TMCs). Corporate travel spend is represented in gross travel value (US$B) and defined as U.S. supplier revenue (air, hotel, car, ground transportation and rail) generated from managed travelers. Expenses made on meals, entertainment and other miscellaneous categories like parking are not included in corporate travel gross bookings. Total U.S. market size figures are per Phocuswright'sU.S. Online Travel Overview Fifteenth Edition.

Corporate travel spend estimates and projections are compiled from U.S. supplier revenue, industry interviews with travel providers and data from Phocuswright's Travel Manager Survey 2015. This report contains actual figures for 2014 and forecasts for 2015-2017.

Managed Traveler Survey
Phocuswright fielded an online survey from October 17-24, 2014 through Global Market Insite, Inc. To qualify for the study, respondents had to indicate they had taken at least one business trip at least 75 miles from home in the past 12 months that included paid lodging and/or air travel on behalf of a company with a managed travel policy. Phocuswright received 520 qualified responses, and the respondent pool can be projected with confidence onto the U.S. online corporate traveler population. The error interval for analysis is +/-4.4% at a 95% confidence level.

Travel Manager Survey
Phocuswright fielded an online survey between April 30 and July 30, 2015 targeting respondents with oversight of, at a minimum, their firms' U.S. travel program, including but not limited to setting corporate travel policy, negotiating corporate rates or supplier discounts, managing business travel expenditures and ensuring compliance with travel policy. Phocuswright received 159 qualified responses to this survey.

Industry Executive Interviews
Additionally, Phocuswright conducted more than 20 in-depth interviews with stakeholders from across the corporate travel industry to obtain insights into the trends and dynamics shaping the industry. These stakeholders include suppliers (airlines, hotels and car rental companies), intermediaries (TMCs, GDSs, content aggregators), and technology companies (OBT providers, expense management companies, data and reporting service providers).

US $1,995 
CA $2,486 • £1,446 • €1,632
FREE for Global Subscribers
Add to Cart