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New Report: Exploring the Rise of Purposeful Business Travel

Accor Group + Skift

September 25th, 2023 at 10:00 AM EDT

As travel demand returns, a new report from Accor uncovers some of the challenges and opportunities facing corporate travel decision makers as they reexamine the value of business travel in a post-pandemic world — and points to what they need to prioritize in 2024.

Accor Group

This sponsored content was created in collaboration with a Skift partner.

Amidst financial and geopolitical uncertainty, business travel demand is increasing due to a robust return to in-person corporate and industry events — even though a full recovery to 2019 levels may not be possible until 2024, according to Skift Research .

As the market continues to level out post-pandemic, business leaders are seeking a new status quo that balances business needs with social and environmental pressures.

“Demand for business travel is back, with forecasts indicating continued increases in business travel spend,” said Karelle Lamouche, chief commercial officer, premium, midscale, and economy brands at Accor. “Business needs travel, and its value is undeniable, but the how and why of business travel has never been such an important question to explore. Understanding and evaluating the purpose of a trip has become more important than ever.”

This idea that purposeful travel is now key to the business travel value equation was recently explored by a panel of global business leaders and senior Accor executives at the company’s annual Masters of Travel advisory board meeting.

“Our Masters of Travel advisory board brought industry leaders from technology, law, energy, engineering, and pharmaceuticals together with Accor executives to create a future vision for business travel and corporate meetings, digging deep into the real value of travel, evaluating the demands it makes in environmental, social and governance (ESG), and understanding what businesses need to prioritize in 2024 and beyond,” said Sophie Hulgard, chief sales officer at Accor.

Key insights from the Masters of Travel event appear in Accor’s Business of Travel 2023 report , which provides a snapshot of the current state of business travel via new research and data analysis.

Understanding the Why of Business Travel

Business travel demand is coming back. A recent survey of Accor’s corporate clients revealed that their business travel expenses had declined by 24 percent compared to 2019, a 10 percent improvement over 2022. Meanwhile, a Deloitte survey projected that business travel spending will fully rebound to pre-pandemic levels by 2024. Accor data reinforces this forecast. The group’s recent client business travel study revealed 57 percent of respondents expect a travel budget increase in 2024 over 2023.

But while the financial value of in-person meetings is clear — Accor research shows that business professionals estimate 25 percent more revenue when meeting face to face rather than virtually — the question of return on investment must be accompanied by a question of purpose that goes beyond the financial bottom line.

“Understanding why you’re traveling, how it will benefit your client relationships, how it will affect the overall health of you and your company, and how it will impact the environment, are key factors for your corporate travel manager to decide whether you should be traveling,” Hulgard said. “Beyond return on investment (ROI), trips are being evaluated in terms of return on expectation (ROE) — so hospitality companies need to deliver against the expectations of the experience, which can vary greatly from company to company, industry to industry, and even trip to trip.”

Delivering Positive ROE (Return on Expectation)

The panelists at the Masters of Travel event represented a wide array of industries — including technology, energy, engineering, pharmaceuticals, and professional services — each with different expectations about the experience and the importance of employee satisfaction, cultural development, and corporate social responsibility (CSR).

“Our goal as a hospitality company is to meet and exceed all of those different expectations and ensure a return, whether we’re building brand loyalty with one employee at a small company or hosting a large conference for a major corporation,” Hulgard said. “Each company has its own definition of purposeful travel, but one shared expectation on the experience is traveler well-being and the need for hotel brands to delight the traveler.”

With travel stress at an all-time high due to external factors like flight disruptions, inflation, labor shortages, and longer queues, one way hotel brands can deliver a return on expectation is by training hotel teams to approach guests with empathy and communicate with emotional intelligence (EQ).

“We’re very focused on making sure every guest always feels welcome,” Hulgard said. “Fulfilling that promise means accommodating all types of requests and elevating the importance of neurodiversity within our training.”

Accor research shows corporate decision makers place “traveler experience” as the second most crucial consideration in 2024, after cost savings.

“More than ever, the well-being of business travelers should be the priority,” Hulgard said. “This is also where blended travel comes into play. Stay longer, do more, go down a gear. In short, think about what you want to achieve from your time and carbon output. If you stay longer, you can pack in more meetings and enjoy some purposeful leisure time, which is beneficial to your mental health and well-being. And why not add on a pleasure trip if it means one less flight?”

The advisory board concurs. One delegate commented on how cost- and time-effective blended travel is to an employer: “Work is paying for the trip anyway and the employee feels like they’re getting extra value. Morale is boosted at no extra cost — so it’s a win, win.”

Recognizing Social and Environmental Pressures

The client survey found that 54 percent of respondents put carbon emissions as their number one CSR priority, with “supplier sustainability performance for 2024 hotel sourcing and selection” ranked as highly important in their booking decisions.

“A growing number of companies are implementing company-wide carbon budgets,” Hulgard said. “Accor is an ideal partner because more than 70 percent of our hotels already have carbon measurement tools in place. In addition to the detailed carbon offsetting data travel managers are looking for, we can deliver reports on water consumption and other environmental and societal impacts.”

Earlier this year, Accor committed to supporting its 5,400 hotels in obtaining external sustainability certifications by partnering with Green Key and Green Globe. These third-party environmental certification bodies will help Accor reassure corporate travel managers who want all hotel brands in a group to follow the same standards.

“It’s all tied together,” Lamouche said. “With businesses trying to strike a balance between carbon and cost, productivity and purpose, it’s a time of great change and revaluation for the industry — change that we can lead. Today’s corporate decision makers are mindful of value, sustainability, and striking a balance between the time and well-being of employees. Purposeful hotel brands and travel managers can respond to this need and give business travel a new lease of life. Businesses can uplift revenue and reinvigorate teams, culture, and employee well-being through face-to-face meetings and purposeful travel.”

This content was created collaboratively by Accor and Skift’s branded content studio, SkiftX .

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Tags: accor , business travel , corporate travel , hospitality , SkiftX Showcase: Hospitality

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Business Travel is on the way back, journey purpose is key

July 31, 2023

By Angela Green

Hotel News is sponsored by Guestline

Accor’s Masters of Travel advisory board meeting brought industry leaders from technology, law, energy, engineering, and pharmaceuticals to Brussels to create a vision for business travel and corporate meetings post-pandemic.

The delegates’ mission was to dig deep into the real value of travel, evaluating the demands it makes in environmental, social and governance (ESG) and what businesses need to prioritise in 2024 and beyond.

The new Business of Travel report from Accor shares these findings along with new European and global data on business travel and can be downloaded through a link below.

The demand for business travel is back, with a return to in-person and corporate industry events under the provision that business needs are balanced with social and environmental considerations. All delegates agree the policy is now Purposeful Travel.

Accor research found that business travel spending is down just 24% from 2019 and is expected to return to pre-pandemic levels by 2024 (Deloitte). Accor’s recent global business travel survey aligns with this return to pre-pandemic spend, as 57% of respondents expect an increase on travel budget in 2024 vs 2023 spend. The same corporates place ‘traveller experience’ as the second most crucial consideration in 2024, following cost-savings in order of prominence. And 46% of respondents confirmed they were not likely to limit business travel for the rest of the year.

Saskia Gentil, SVP Sales, Europe & North Africa at Accor, commented: “Masters of Travel gives us an in-depth look at the state of play for business travel today. With businesses trying to strike a balance between productivity and purpose, it’s a time of great change and revaluation for the industry. What’s clear is that after a period of inactivity, delegates are eager to get on the road again. Being mindful of value, sustainability and striking a balance of work and leisure that ensures the wellbeing of employees, businesses can uplift revenue and reinvigorate the art of face-to-face.”

The value of face-to-face is undeniable, with professionals estimating 25% more revenue when meeting in person. And the bottom line isn’t the only equation when workers need interaction with colleagues and associates for their mental health and job satisfaction. Every trip is carefully evaluated in terms of ROI and ROE – return on investment, and, increasingly, return on expectation – no return, no flight.

Virtual meetings are an accepted part of the working landscape in ways that weren’t commonplace pre-Covid, but until the tech catches up and holograms can smile with feeling, deals are still being sealed with a handshake.

Environmental concerns were front of mind for many. An Accor survey of corporate clients revealed that 54% put carbon emissions as their number one CSR priority, and “supplier sustainability performance for 2024 hotel sourcing and selection” was ranked as highly important in their booking decisions. The onus lies both on travellers and hosts, with both parties having to work together for more sustainable travel. More than 70% of Accor hotels have carbon measurement tools in place and delegates were happy to spend more per night for higher environmental credentials.

Combining meetings with purposeful leisure time means travellers are staying longer, doing more, and going down a gear to make the most of their carbon output. While still in its infancy, delegates clearly value ‘bleisure’, as do their employees.

Younger employees are more likely to combine business with pleasure via blended ‘bleisure’ trips, but the trend is increasingly prevalent across demographics. 67% of clients surveyed in an Accor poll extended their business trips in 2022. Travel bookers urge caution from an insurance standpoint, as partners and families are often not covered and grey areas exist when it comes to splitting invoices, dividing loyalty points and benefits.

The wellbeing of business travellers should be of utmost importance. “Consumers today understand that they need to own their health and immunity in a different way,” said Emlyn Brown, global senior vice president of well-being at Accor. “Our ability to deliver an authentic, holistic, and highly considered wellness offering is vital.” He added: “Four out of five of our guests, irrespective of age, demographics, or country, are taking a daily step to improve their well-being — so we need to meet and exceed that demand in all our brands no matter which one travellers are staying in.”

Masters of Travel delegates indicated loyalty programmes play a factor in enticing employees to travel for business too, with younger travellers seeking experiential rewards like concerts, drinks and even bicycle hire. ALL: Accor Live Limitless has over 95 partnerships offering rewards, services, and experiences beyond the stay.

While tech is key to bookings across the board, technology must be people-centric, designed to improve the process and the human touch shouldn’t be far away.

Sabine Toplak, VP Corporate & TMC Sales, Europe & North Africa at Accor, and Co-Host of Masters of Travel knows the world of corporate travel is changing quickly, and clients and hospitality businesses need to learn how to adapt. “Insights gleaned will shape Accor’s thinking around travel, in order to fully understand what businesses are thinking so we can work collaboratively to create solutions to meet their objectives.”

To read the full report, visit Business of Travel 2023 — Accor European Travel Trends .

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Accor signs new MGallery Hotel Collection property in Sanya, China

A ccor Greater China with Sanya Jinghai Cheng Real Estate Development has signed a new MGallery Hotel Collection property in Sanya, Hainan.  

Slated to open by the end of next year, Sanya City Center – Mgallery Collection will have 187 rooms, catering to both leisure and business travellers.  

The 25-storey hotel will also have a rooftop pool and bar. 

Sanya Jinghai Cheng Real Estate Development general manager Wang Xiaoke said: “The community of Jinghai Cheng - Lugang Xishan is the masterpiece of our 20-year development project and we believe that our new MGallery hotel will be its crowning glory - where visitors and locals will come to enjoy some of the finest moments that Sanya has to offer. 

“We chose MGallery for the character and culture it will bring to our neighbourhood, integrating the spirit of Sanya while delivering the brand experiences that resonate with Chinese travellers.” 

Located in Jinghai Cheng-Lugang Xishan, this development is part of Accor's expansion in Greater China. 

This expansion strategy includes the recent Chengdu Financial City – MGallery Collection signing and opening of Dunhua Mansion Taipei – MGallery Collection. 

With these additions, Accor is on track to open five MGallery hotels in the region this year, doubling its MGallery portfolio in China to ten. 

Accor Greater China CEO Gary Rosen said: “MGallery is a brand that has dared to disrupt the industry with a constellation of curated experiences that Accor is rapidly expanding across Greater China.  

“In Sanya City Center, we will create a hotel where urban sophistication is perfectly balanced with the well-being of island living, with an artistic and design-led touch. We look forward to bringing MGallery’s memorable and meaningful sense of luxury to the vibrant community of Sanya.” 

This comes soon after Accor's loyalty programme and booking platform ALL integrated with French train travel provider SNCF Connect.

"Accor signs new MGallery Hotel Collection property in Sanya, China " was originally created and published by Hotel Management Network , a GlobalData owned brand.

The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.

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" DIR: West; bigger nice evening sun but louder due to main street DIR:East; Quiter, very bright in the morning if sun rises "

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