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No Big Changes to Corporate Travel Spending in 2017 

Grassroots Research 

 

5/23/2017 

In 2017, corporate travel spending is expected to be flat or up slightly year-to-year. Despite heightened global security concerns, travel policies are not changing for most, while a few cited investments in duty of care risk-management programs.
Most have not made any specific policy changes due to heightened global security concerns.
Interviews with travel industry representatives in the US revealed that slightly less than half expect corporate travel spending to remain flat in 2017 vs. 2016, while slightly more than one-third expect it to increase due to corporate expansion or increased hotel pricing, and a few expect it to decrease – up an average 1% overall. In addition, two-thirds of sources expect the number of employees traveling to meetings and conventions to remain flat in 2017 vs. 2016, generally due to budgetary constraints, while a few expect it to increase, and a couple expect it to decrease – flat overall.

Almost none expects any shifts regarding preferred hotel classes/types in
2017 vs. 2016.
Meanwhile, slightly less than three-fourths of sources have not adjusted their travel policies this year, while one-fourth said policies are more restrictive, and one said less restrictive. Most have not made any specific policy changes due to heightened global security concerns, either because they primarily travel domestically or already altered policies, while a few said duty of care programs (a company's obligation to take care of traveling employees' safety) were being considered or adopted.

As to the top two preferred hotel chains, sources most frequently cited Marriott (Marriott International) and Hilton (Hilton Worldwide). Looking ahead, almost none expects any shifts regarding preferred hotel classes/types in 2017 vs. 2016. Regarding hotel prices, two-thirds of sources expect an increase in 2017 vs. 2016 – most often slightly – due to consolidation and previous years' increases, while one-fifth expect them to remain flat, and a few said decrease – up an average 2% overall.



GrassrootsSM Research is a division of Allianz Global Investors that commissions investigative market research for asset-management professionals. Research data used to generate GrassrootsSM Research reports are received from reporters and Field Force investigators, who work as independent, third-party contractors, as well as external research panel providers—all of whom supply research that may be paid for by commissions generated by trades executed on behalf of clients. We believe these sources of information to be reliable and are providing the information in good faith, but in no way warrant the accuracy or completeness of the information. We have no obligation to update, modify or amend this document or to otherwise notify you in the event that any matter set forth in this document changes or subsequently becomes inaccurate. In addition, information may be available that is not reflected at this time. We accept no liability whatsoever for any direct or consequential loss or damage arising from your use of the information contained in this document. We and our affiliates, officers, employees or clients may effect or have effected transactions for our or their own accounts in the securities mentioned here or in any related investments. The information provided in this document is provided for informational purposes only and shall not be considered investment advice. Any reference to a particular company shall not be considered an offer to sell, the solicitation of an offer to buy or a recommendation to buy, sell, or hold any security issued by such company. No part of this material may be i) copied, photocopied, or duplicated in any form, by any means, or ii) redistributed without prior written consent.


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