Business and Leisure Travel Convergence

Oct 7, 2024

Lecture Notes: The Convergence of Business and Leisure Travel

Introduction

  • Examines the blurred lines between business and leisure travel in the post-COVID era.
  • Uses examples of travelers like Janet (business travel) and Tyler and Sophia (remote work) to illustrate.

Business vs. Leisure Travel

  • Traditional Indicators of Travel Type:
    • Business travelers typically plan trips closer to departure dates (approx. 9 days in advance).
    • Leisure travelers often book well in advance (more than 30 days) for cost savings.
    • Booking platforms like Booking.com adjust accommodation displays based on travel type.

Influences on Travel Decisions

  • Leisure Travel Influences:
    • Influenced by personal research (average 38 websites) and recommendations from friends/family.
    • Triggered by visual content like screensavers, vlogs, and photos on social media.
  • Business Travel Determinants:
    • Destinations are usually fixed by business needs (events or partner locations).
    • Focused on city hubs with direct flights like New York, London, etc.

Trip Length and Complexity

  • Typical Trip Durations:
    • Business trips: About 4 days, usually mid-week.
    • Leisure trips: Can range from 3-day weekends to 20-day holidays.

Blurring Lines: Bleisure Travel

  • The trend of combining business and leisure trips.
  • Employees may extend business trips for leisure (bleisure).
    • Joining with family/spouse, exploring cities.
  • Vacationers may adjust dates for cheaper fares or better deals.

Flight and Accommodation Preferences

  • Leisure Travelers:
    • Price-sensitive, often choose based on budget.
    • Less concerned about service quality.
  • Business Travelers:
    • Account for a small percentage of bookings but a large share of profits.
    • Prefer full-service options and loyalty programs (e.g., Marriott, Hilton).
    • Some opt for Airbnb or boutique hotels for unique experiences.
  • Remote Workers (Workations):
    • Need conducive workspaces even on leisure trips.
    • Similar needs to business travelers regarding accommodation.

Future of Travel Post-COVID

  • Business Travel:
    • Recovery expected by 2024, but behavior may permanently change.
    • Video conferencing reducing need for travel.
  • Leisure Travel:
    • More stable but evolving expectations.
    • Demand for flexibility and work-friendly environments in vacation spots.

Conclusion

  • The travel industry, especially hospitality, is adapting to new trends and customer expectations.
  • Anticipating ongoing changes as work and personal life continue to integrate.