Corporate Traveller discusses all the trends you need to know when it comes to business class or economy class for business travel.
Business travel in South Africa is booming, with travel numbers exceeding those of 2019 and it seems that South African corporates are increasingly insisting on travelling in style as business class bookings far surpass 2019 numbers.
This return to the front of the plane might be a boon for airlines, but it also raises several questions. Why has preference shifted to business class? Is it limited to the C-suite? Is it sustainable? What’s the business impact?
Corporate Traveller GM Bonnie Smith discusses all you need to know about this business travel trend.
According to Corporate Traveller, as business travel is becoming more intentional and considered, it’s often only the higher tiers of the company travelling. This goes against early predictions, which expected C-level execs to remain in their offices while lower-level corporates would be flying.
Now that younger recruits are also taking back to the skies, the question remains whether the demand for business class tickets will remain as high as it is currently.
Smith said they expect the demand for business class will slightly diminish as more layers of the company are going back to travel.
“However, important to note is that health and wellness have become a huge focus area for many companies. The effects of the pandemic and subsequent return to work revealed the many shortcomings in the system and have led both employees and companies to rethink their approach to well-being. Business travel presents a unique opportunity to offer employees health-centric benefits – premium-class bookings for longer flights, serviced apartments for extended stays, and various upgrades and perks,” said Smith.
According to Smith, when it comes to sustainability, the onus is split between the airline and the traveller, and both have several ways to tackle the issue.
“Airlines are taking a multifaceted approach which includes investing in more fuel-efficient aircraft and focusing on specific elements like optimising flight times and weight reduction. For travellers, it’s partly a balancing act influenced by several factors. And unfortunately, business class is taking its toll on the environment,” she said.
The International Council on Clean Transportation (ICCT) compiled a report analysing carbon dioxide emissions from commercial aviation from 2013, 2018 and 2019. The report revealed that passengers seated in business class are responsible for 2.6 to 4.3 times more emissions than if they fly in coach.
“Today, TMCs are able to calculate your carbon footprint per leg, per flight. You can track your emissions against sustainability goals – and offset your impact through verified carbon offset projects. This is really important if you have frequent travellers – or travellers turning left on the plane,” said Smith.
The ROI of business travel is not the same for every company, but when executed with consideration and precision, it’s benefits can be exponential.
Smith believes that market dynamics drive airfares, and until Covid has been eradicated they will remain unpredictable. But consider the financial implications of a new intentional client – or the loss of one. This is where your TMC comes in.
“Lean on your travel partner, and don’t be afraid to mix things up. Your TMC will be able to use their own buying power to negotiate and secure special rates on your behalf wherever possible. Take their advice when it comes to booking ahead, booking out of peak times, or exploring new accommodation options,” said Smith.