South African businesses are doubling down on travel in 2024, prioritising in-person connections and expanding into new markets, even as travel costs surge.
These are some of the findings of a new Business Travel Barometer white paper from FCM.
According to Bonnie Smith, GM of FCM, the paper revealed key trends determining this strategic shift in 2024.
As the year comes to an end, Smith highlights some of the trends in the white paper and offers insights on how companies can optimise their travel strategies for 2025.
Travel spend on the rise
One of the most striking trends revealed by the white paper is the rise in business travel spend. Overall, flight expenditure has increased by 53% in 2024, with both ticket volume up 54% and average prices climbing.
While this might be interpreted as a barrier for some, Smith explained that businesses are determined to invest in travel to unlock critical opportunities despite cost pressures.
“This increase in travel and spending is a reflection of how important in-person meetings and relationship building still are.
“South African companies are prepared to manage rising travel costs because they understand the value of maintaining client connections and exploring new market opportunities — something that simply can’t be replicated on a virtual call,” she said.
The expert also noted that businesses are adapting their travel policies in response to these shifting dynamics.
“With the cost of domestic airfare and hotel stays also on the rise, companies are actively seeking smarter ways to book and save, using everything from loyalty programmes to corporate fare deals,” she said.
Johannesburg to London Heathrow: a key destination on the global and continental map
The report highlights several important shifts in top international destinations for business travellers between June and August 2024.
Smith said the report found that Johannesburg to London Heathrow continues to be the leading route. Other top international destinations include Johannesburg to Accra and Johannesburg to Dubai.
The report also highlighted that with Atlantic and continental ties strengthening, regional travel is also a significant part of corporate travel. Accra, Nairobi, and Lusaka have emerged as key hubs for businesses aiming to expand across Africa, according to Smith.
“Accra’s rise as a leading destination, alongside popular African routes such as Nairobi and Addis Ababa, shows the business interest South African companies now have across Africa. There’s a real focus on expanding trade here,” she said.
Hotels and ground transport: rising demand drives prices
Hotel spending saw a substantial increase (+66%) as organisations ramped up their bookings, signalling greater demand for long stays and higher-end accommodation.
She said the biggest challenge for travel managers will now be negotiating corporate hotel rates and leveraging loyalty programs to manage these rising costs effectively.
Meanwhile, the paper highlights that car rentals have become a more frequent part of corporate travel (bookings are up 66%), even as daily rental rates fell slightly by 6.7%.
Smith said the increased frequency of car rentals highlights businesses’ focus on flexibility, particularly for regional and cross-country travel where ground mobility is critical.
Lastly, Smith noted that as South African businesses enter the new financial year, travel is more crucial than ever before and strategic investments in international links and intra-African travel will likely continue to grow making it essential for companies to optimise their travel spend without compromising on quality or efficiency.
“South African companies are positioning themselves at the heart of global and continental business opportunities and need to be smart in how they allocate resources.
“By taking a forward-thinking approach and leveraging the tools at their disposal, businesses can navigate the rising costs while reaping enormous benefits,” said Smith.