Quarterly Market Update report

29.05.2024 - 13:07 / traveldailynews.com / Joe Biden / Vicky Karantzavelou

SilverDoor shares insights on key corporate travel market trends in latest Quarterly Market Update  

The second Quarterly Market Update report for 2024, released by SilverDoor, leading serviced apartment agent, details that shifting political landscapes and legislation particularly in the US and India, alongside increased demand for hybrid working, are key drivers of growth in global corporate travel demand.

Earlier this year, according to Quarterly Market Update report US President Joe Biden signed a bill to assign $50million to reduce passport backlogs and visa wait times. A massive backlog in processing first-time visas, causing delays exceeding a year (up to 400 days in some instances), has cost the US travel industry over $12 million in lost revenue from tourism spending in just the past year. This new bill, warmly welcomed by the US Travel Association, comes at a crucial time. The US, along with Canada and Mexico, anticipates a surge in visitors as they prepare to co-host the FIFA World Cup in 2026.

India’s business travel sector is booming, with spending projected to hit $38 billion this year. This surge coincides with the country’s ongoing General Election, the largest democratic event in history.969 million people are eligible to vote in a region that is seeing significant economic growth and likewise growth in demand for corporate housing and accommodation rates. Any resulting governmental changes are expected to reflect the demands of a younger workforce generation with further shifts in the corporate landscape to follow in support of key destinations including Bangalore, Pune and Mumbai where investment also continues to grow.

More office work gains traction. Studies show 71% value hybrid work, but 55% of young adults prefer it. Focus shifts from home-working options to convenient office locations.

Demand for serviced apartments is driven by local amenities and community impact. This includes relocation needs like registering in a city and setting up bank accounts. Additionally, ESG-conscious companies seek property providers collaborating with local planners for community benefits, such as playgrounds and gyms.

Globally, booking data shows an expected YoY reduction in average daily rate (ADR) by the end of the year in key locations including London, Chicago and Singapore which will follow the current upward trend, whilst average length of stay (ALOS) has seen an 18.8 per cent decline by nine nights YOY, from 48 nights down to 39. Across key regions, ALOS is 35 nights in EMEA, 59 nights in the Americas and up to 63 nights in APAC.

Alongside the shifts in ADR and ALOS, lead times have held fairly constant at 42 days globally, compared to 41 days at the same time last year. EMEA has the