Asia's corporate buyers look at budget cuts

Firms are looking to cut costs on transport, accommodation, and F&B.

Corporate travel buyers in Asia are enthusiastic about hosting international programmes but are cutting down costs.
Corporate travel buyers in Asia are enthusiastic about hosting international programmes but are cutting down costs. Photo Credit: Adobe Stock/jirsak

According to the latest Cvent Travel Manager Report: Asia, corporate travel buyers in Asia are enthusiastic about hosting international programmes and anticipate an increase in travel budgets.

However, rising inflation is driving them to cut costs, with transportation and accommodation expected to bear the brunt of the cuts, followed by food and beverage. As such, venue teams need to start engaging with travel managers to prepare for the anticipated surge in business and be fully equipped to handle a deluge of RFPs.

In addition to cutting costs in transportation and accommodation, corporate buyers in Asia are also exploring ways to save money in other areas such as venue fees, wi-fi/roaming charges, and insurance and safety. Furthermore, some buyers plan to reduce the number of people traveling for business. With fewer people on the road but an increase in planned events, venues will need to offer enticing incentives to encourage attendees to spend from their own pockets.

Travel managers have also revisited their expectations of hotels post-pandemic. According to the Cvent Travel Manager Report: Asia, 38% of those surveyed rated high-quality health and safety protocols as their top priority, followed by larger rooms with better working amenities (35%), and more flexible rate negotiations (34%). Surprisingly, more outdoor space ranked the lowest priority, chosen by only 21% of respondents.

In addition, sustainable travel is a significant priority for corporate travel buyers. According to the Cvent Travel Manager Report: Asia, 36% of travel managers consider it to be a more critical factor now than pre-pandemic. Sustainability is even influencing the choice of venue, as 92% of travel managers surveyed say that it influences the hotels they book for their programmes.

Cvent surveyed 250 corporate travel decision-makers in Singapore, China, Japan, Thailand and India.