Autonomy is the number one factor in the travel patterns of business travellers in Asia, according to a report commissioned by Singapore Tourism Board and announced at Travel Rave 2015, held October 19 to 23 at Sands Expo and Convention Centre.
The Asian Business Travellers report revealed five significant insights into travel patterns:
- increased employee empowerment
- desire for convenience and travel experiences
- differences in preferences among Asian nationalities
- four distinct Asian business traveller archetypes
- susceptibility to the same disruptive forces that affect leisure travel
On autonomy, the report showed that 69 percent of respondents are able to choose their preferred airlines from a pre-approved list and have no policy restrictions, while 11 percent have no restrictions at all. Similarly, 74 percent enjoy some flexibility in choosing hotel accommodations while 9 percent do not have any restrictions. Thirty-five percent of those travellers with policy restrictions do not necessarily comply with corporate guidelines.
Time-strapped business travellers place a high premium on convenience, and direct flights with convenient flight times rank highly. Non-compliance to policy restrictions is relatively high at 53 percent, with respondents more likely to consider time-efficient alternatives.
National diversity also plays a role in determining preferences, with Singaporeans being the most comfort-conscious but the most unwilling to pay for premium services; while Indians - alongside the Chinese - are the most enthusiastic users of online and mobile booking tools. The Chinese are the only Asians to have indicated a preference for award-winning services, and Indonesians have the most positive attitude towards business travel, with 76 percent of respondents perceiving business trips to be a perk of the job. The Japanese remain the most conservative and policy compliant with the lowest spending pattern; they are also the least likely to consider business trips as a perk, with 56 percent preferring to separate work from leisure.
Additionally, four main types of travellers are identified: stereotypical suits, service seekers, points maximisers and belt tighteners, which correlates to specific travel behaviours under each category.
The environment for business travel is seen to be influenced by the same disruptive forces that affect leisure travel, with digital technology redefining traditional interactions between the customer and the travel agent. Low-cost carriers too gain prominence, taking up 29 percent of business travel spending.
Underscoring its impact on the scenario is the growing prominence of the sharing economy. Presently, it only accounts for 0.1 percent of business travel spending, with travel policy restrictions being the main barrier. But 70 percent of Asian business travellers are familiar with the sharing economy, and 40 percent are open to staying at these accommodation options.
The Asian Business Travellers report was based on a survey of 2,565 respondents based in Singapore, China, Japan, Indonesia and India, with an even spread of age, senority, company type and location. Interviews were also conducted with 19 travel managers who qualified within the specified demographic and geographical criteria. Data from Amadeus and Visa were compiled within January 2012 to June 2015; snapshot data received by McKinsey was from June 2014 to June 2015.
For a more in-depth look at the report, log on to http://www.yoursingapore.com/content/dam/travelrave/resources/asian-business-travellers-five-things-you-need-to-know.pdf