Global Hotel Business Revenue
After an extensive search through industry reports along with attempts to triangulate, we could not find information on what percentage of global hotel revenue is from business (corporate) travel. However, it is highly likely that the required data is hidden behind a paywall. Below are some helpful findings.
THE GLOBAL BUSINESS TRAVEL MARKET IN 2017
- According to Allied Market Research's report, the global business travel market was worth $1.30 trillion in 2017. The food and lodging segment contributed about half of the market share.
- The report by Allied Market Research analyses the business travel market by service — transportation, food & lodging, business activity; industry — government, corporate; and traveler — group, and solo.
- The corporate industry segment had the largest market share in 2017, returning about 64.61% of the total revenue.
- The global business travel market is projected to reach $1.66 trillion by 2023, with a CAGR of 4.1% from 2017 to 2023. The food and lodging segment dominates the global business travel market and is expected to record the fastest CAGR of 4.7% from 2017 to 2023.
MILLENNIALS AND GEN Z PREFERENCES
- More than one-third (36%) of Millennial and Gen Z employees surveyed in the TripActions' 2018 State of Business Travel Report said they book Airbnb-type accommodations, along with boutique hotels, as part of "fulfilling their desire for unique travel experiences."
CATERING TO SMALL AND MEDIUM-SIZE ENTERPRISES (SMEs)
- Hotels are targeting SMEs. Hyatt Hotels Corp., under its new Hyatt Leverage corporate travel program, is offering small businesses savings of up to 15% off the lowest available room rate when booking participating Hyatt properties.
LOYALTY PROGRAMS AND BUSINESS TRAVEL
- The TripActions 2018 State of Business Travel Report found that 21% of business travelers don't belong to any hotel loyalty program, and are less interested in loyalty programs in general.
- The Global Business Travel Association's (GBTA) research found that business travelers consider three hotels before booking, and 82% say loyalty programs matter when making that decision. 90% are motivated by rewards points and perks when selecting a hotel, and 81% believe that being a loyalty member attracts better service.
BOOKING HOTELS BY BUSINESS TRAVELERS
- According to a July 2018 report from Amex GBT and German research firm, GfK, 40% of nearly 750 US-based business travelers admitted to booking outside their companies' travel policies. Most (84-86%) did so to be closer to the meeting or event venue, to stay in a safer or more convenient location, to be in the same hotel as their client, and even to save the company money.
- 33% of business travelers book rooms from the hotel's website, while 27% use an online travel agency.
- Personalized guest experience is important to 84% of business travelers. 80% is the average comfort level with hotels using shared information to offer a personalized guest experience.
- 28% of millennial business travelers book hotels directly on a hotel's website. 10% book hotels through an online travel agency like Expedia, 7% book with a third-party reseller like Kayak, and 14% book with a travel agent.
We started by looking at the global business travel industry, searching for pre-compiled information on the percentage of global hotel revenue from business (corporate) travel. We found a report on global business travel. As per this report, the global business travel market has two industry segments — corporate and government. While this report was locked behind a paywall, we found a news source about the report, which stated that the global business travel industry was worth $1.30 trillion in 2017 — this being the market capitalization. We also found that the corporate industry segment contributed about 64.61% of the total revenue in 2017. Now, we found that market capitalization and revenue do not refer to the same thing, and we cannot use one to calculate the other.
We also found that the food and lodging segment contributed about half of the market share of the global business travel market. The other two segments are travel and leisure. We can assume that "food and lodging" refers to hotels. However, since the total revenue of the global business travel market wasn't available, we could not triangulate the information required. We did try to find other sources where the total revenue of the global business travel market might be available, but we did not find it. We did, however, find helpful information about the global business travel market and hotels which we have included above. It is highly likely that the required information is behind a paywall.
Next, we decided to try to find the information by looking at the global hotel industry. We hoped to identify how much global hotel industry revenue came from business (corporate) travel, and then triangulate the information by calculating the percentage. We found reports like the Global Travel Forecast and "2018 Travel and Hospitality Industry Outlook — Deloitte," which contained some information on how technology is shaping the global business travel market and how 2018 is forecast to be a robust year for corporate travel spending — it is expected to surge 6.1%, its highest rate of growth since 2011. We also found that the global hotel industry revenue was $570.18 billion in 2017. Once again, since the revenue of hotels from business (corporate) travel wasn't available, we could not triangulate the percentage required. However, this information might be available behind a paywall.
Since the previous two strategies had given us reports and research papers, we decided to look for news sources about the global hotel revenue from business (corporate) travel. We found information on how global business travel and hotel bookings are experiencing a slowdown in 2019 and how political unrest is contributing to this slowdown. However, we could not find any information on global hotel revenue from business (corporate) travel, and we could not find any information which would help us triangulate the information required.
Finally, since we already had found that global hotel industry revenue was $570.18 billion in 2017, we decided to find out what percentage of the revenue of specific hotel chains comes from business travelers. We hoped to find an average across multiple hotel chains and then add the average to triangulate the information. We looked at the annual reports and press releases by Wyndham Worldwide, Marriott International, Hilton Worldwide, Best Western Hotels, InterContinental Hotels Group, among others and found total revenue figures and other information. However, we did not find the exact revenue or percentage of revenue that comes from business travelers for these hotel chains. So this strategy also was a dead end.