SMEs keep business travel in sharp focus
UK SMEs continue to invest confidently in international business travel despite ongoing uncertainty. We discuss how businesses are adapting travel strategies while keeping growth and relationships front of mind.
Despite continued geopolitical uncertainty and disruption across parts of the Middle East, UK small and medium-sized businesses continue to invest confidently in international travel - new research from Travel Counsellors for Business suggests face-to-face meetings remain firmly at the centre of growth plans for many SMEs.
A survey of 1,000 UK SMEs found 67% remain confident about travelling abroad for business, while almost four in ten businesses plan to increase international travel over the next 12 months.
The reasons behind that growth are clear. More than a third of businesses said international trips are being driven by the pursuit of new business opportunities, while others highlighted the importance of meeting suppliers, manufacturers and attending overseas events and conferences.
Meon Travel’s own booking data also points towards stronger demand, with UK corporate sales rising more than 6% year on year over the past month. Average booking values have also increased, suggesting businesses are placing greater emphasis on higher value and potentially more strategic trips.
“Alongside increased travel activity comes a corresponding rise in business travel expenditure. Nearly two-thirds of the SMEs Meon has engaged with anticipate their international travel budgets increasing over the next 12 months,” says Richard Ware, Head of Corporate Sales at Meon Travel.
“What is particularly notable is SMEs are not stepping away from travel altogether but instead evolving how they travel. Businesses are taking a far more strategic approach to destinations, routing and booking decisions, with flexibility, traveller wellbeing and risk management now playing a much more significant role in overall travel planning and policy.”
According to the survey, more than a quarter of SMEs are actively avoiding certain regions or travel routes, while over half said they were now less willing to send employees to the Middle East due to current instability. At the same time, booking patterns are shifting significantly. Travel through Middle Eastern hubs has reportedly fallen sharply, while alternative routings through Asia have surged. Demand for destinations such as the United States and Australia has also increased considerably.
Europe continues to remain the most popular destination for UK business travellers, with more than two thirds of SMEs expecting it to be their most frequently visited region over the next year. Many businesses view European travel as a safer and more predictable option amid wider global uncertainty.
“The findings also demonstrate a clear shift in purchasing priorities amongst SMEs. While cost continues to be a key consideration, flexibility is now becoming equally important within the decision-making process.
“Businesses increasingly want the ability to adapt travel plans quickly, reroute journeys where necessary and respond proactively to disruption, all while minimising additional costs and operational impact,” says Richard Ware.
For travel managers and corporate travellers alike, the message is clear. Business travel is still viewed as essential for growth, relationship building and commercial success, but companies are approaching it with far greater planning, awareness and agility than ever before.
Contact Meon Travel today to find out how we can support your business better.
