How hoteliers can navigate the future of blended travel
With the pandemic’s impacts finally tapering off, people’s desire to travel has returned with a vengeance. This so-called “revenge travel” continues to play a pivotal role in the recovery and growth of travel overall – and related to the return of business travel has been an increased interest and desire for blended business and leisure travel, sometimes referred to as “bleisure.” While the trend of combining travel for work with play can take many forms, some of the major identifiers include adding a few leisure days before or after a work trip, bringing family members along on a business trip, or even working while on vacation.
The concept of blended travel has been around for a number of years – at least since the first business traveler decided to add a weekend stay after attending a conference. But, post-pandemic, the industry has seen an acceleration in the number of business travelers taking advantage of new opportunities opening to them.
At Global Business Travel Association (GBTA), the industry outlook is for an overall robust path ahead for the business travel sector which also bodes well for blended travel opportunities. The latest GBTA Business Travel Index Report (GBTA BTI™) revealed a forecast for global business travel spending to reach a high of $1.48 trillion by the end of 2024, an increase on the previous record of $1.43 trillion recorded in 2019. By 2028, GBTA expects the sector will exceed $2 trillion in value.
Further growth for blended travel is ahead and will be enabled by work and life factors of travelers including the increased flexibility in work locations, work-fromhome fatigue, and a wider rethinking of priorities – including the desire to travel – following years of disruption.
With sustainable travel also a growing consideration, this trend allows corporate travelers to potentially reduce their environmental impact. If I’m able to take a single flight for multiple purposes, both business and for pleasure, I may reduce the overall number of trips I take and thus the number of flights I book.
HOW BIG IS THIS MARKET?
GBTA recently looked at this trend as part of a study of business travel’s economic impact, revealing blended travel made up over a third of all travel in the U.S. (33.8%) in 2022.
Additionally, the GBTA BTI report found 62% of business travelers were more frequently blending business and personal travel than they did in 2019. At the same time, 42% were adding additional leisure days to their business trips, while 79% of these travelers were staying at the same accommodation for the business and vacation portions of a trip.
WHO IS A BLENDED TRAVELER?
There is no single persona for a blended traveler, but it usually represents a point where time, desire, ability, and opportunity intersect. Interestingly, according to GBTA research, although men were more likely to travel for business overall, proportionally, women added a leisure component at a much higher rate than men. Women comprised 42.1% of conference and convention travelers and 36.6% of other business travel but made up 48% of total blended travel trip volume.
At the same time, data shows travelers stay 4.4 days on average during blended trips.
When it comes to motivation, some business travelers see it as an opportunity to go solo and take a few days for themselves, while others bring along their partner or meet up with family and friends at their destination. In general, people are leaning into blended travel and taking advantage of its benefits.
INDUSTRY RESPONSE
Growing interest in blended travel offers hoteliers an opportunity; how might they take advantage? One idea might be to offer discounts for guests who extend their stays beyond business commitments, perhaps to enjoy some leisure time during the weekend, take advantage of the hotel’s amenities, and check out some local attractions.
In terms of design, hotels might focus on in-room facilities, including maintaining office desks, which had previously been slowly falling out of fashion. Properties must also ensure Wi-Fi is fast and reliable, while also creating comfortable workspaces or business centers that meet the needs of remote workers. Hotel lobbies also can become multipurpose spaces, with opportunities to work and socialize in a shared area.
Concierge services may also play a part, offering blended travelers personalized recommendations and itineraries for activities during what might be a relatively short stay.
For those that get the mixture right, travelers are likely willing to spend more on additional room nights, as well as dining, laundry, spa and poolside/cabana services and sightseeing.
As the blended travel trend continues to bloom, the hospitality industry will be expected to tailor its offering to meet the intricate expectations of business explorers and capitalize on the potential of the segment.
