Sharing Economy Continues to Shape Business Travel

Whether an employee takes a ride-share to the company’s holiday party across town or books a home-share for a trip across the country, he or she demonstrating his or her preference for alternative travel accommodations. A corporate traveler may opt for sharing services as a way to save money or to meet a more personal need to enhance their travel experience. Or, perhaps, their choice simply reflects how they make similar decisions outside of the office: they order an Uber or stay in private homes as a matter of routine.

It’s important to consider how the sharing economy will change travel behaviors and policies in the year ahead. With respect to traveler preferences, the lines are blurring between individual and business consumer behavior. Travel managers are getting the message and accommodating their traveling employees with policies that better sync with their affinity for sharing services. At the same time, sharing services’ business programs are offering data-rich tools and resources that help travel managers better understand their employees, address duty of care concerns and work within flexible, digital processes. From an administrative standpoint, the sharing economy is giving travel managers reasons to evolve as well.

Statistics Reveal Global Growth

Take into account these facts and figures showing the rising popularity of sharing services in the business travel market.

Ride-Sharing:

• In 2016, 79% of business travelers in Mexico and 61% in the US were able to use ride-sharing services; 42% of Hong Kong-based business were travelers free to use home-sharing services. (GBTA Foundation)

• 7% of US-based travel agency owners, managers and frontline travel agents revealed that at least some business travel clients are using an alternative supplier for their ground transportation. (Travel Leaders Group)

• 56% of European travel managers’ policies have used Uber more in the last 12 months. (Business Travel Show)

Find additional insights in Ride-Sharing in Corporate Travel Slowly Accelerates.

Hotel/Accommodations:

• 17% of European travel managers have increased bookings through Airbnb in the last 12 months. (Business Travel Show)

• Use of home-sharing for business travel has had 56% growth year-over-year from 2015-Q1 to 2016-Q1. (Concur)

Finally, a note about generational variances: the GBTA Foundation revealed that millennial were more likely than business travelers of other age groups to have used ride- or home-sharing services on work trips. Learn more in Why Travel Sharing Services Are Here To Stay.

3 Reasons to Believe in the Sharing Economy

1. Business Travelers’ Changing Expectations. Now, more than ever, employees are making choices based on their personal preferences and convenience. It’s easy to compare prices online and to use web-based, self-service booking tools to piece together itineraries that reflect their unique needs. They have the flexibility of mobile apps that put trip management—from booking through expensing—at their fingertips. It’s just as easy (or potentially easier) to schedule a ride share, for example, than to hail a taxi.

In reference to the GBTA research, Susan Chapman-Hughes, Senior Vice President, American Express Global Commercial Payments, states, “Flexibility continues to be a major priority for business travelers—whether it’s the flexibility to choose which business technology will best serve their needs on the road or the travel itinerary that will best meet their business objectives.”

3. Travel Policies Make Room for Sharing Services

Business travelers themselves are driving policy change. But for proof, let’s turn back to the research to illustrate trends. 2016 GBTA Foundation research found that 44% of business travelers say their companies’ travel policies allow for ride-sharing services and 28% can now use home-sharing services. The Business Travel Show poll of European travel managers found that 28% include sharing economy providers in their travel policy, up from 8% last year; 37% of these travel managers believe they benefit their travel program, compared to 27% previously.

2. The “Gig” Economy. According to the McKinsey Global Institute, 20-30% of the working-age population in the United States and the EU-15 (or up to 162 million individuals) engage in independent work. With a rise in career freelancing, people who travel for work don’t necessarily need to adhere to a company travel policy. Their needs tend to be less formal, making more flexible (and often shared) workspaces and accommodations more attractive, especially if the price is right. And let’s not forget that employment options for the “gig economy” include providing ride-shares and renting out ones home/rooms for extra income.

These reasons, and more, are explored in Skift’s Why Short-Term Rentals Will Change the Business Travel Landscape.