Published on : Friday, January 27, 2017
A look at 2016 travel and entertainment expense trends from Certify showed since 2014, the Airbnb transactions have doubled year-over-year. Uber rides now account for more than half of overall ground transportation transactions.
Certify CEO Robert Neveu said that the growing preference for sharing economy services like Uber and, to a lesser degree, Airbnb really underscores the trend toward consumerization of traditional corporate travel. He continued saying that the advances in personal technologies and travel-based smartphone apps have made it easier for business travellers to choose the experiences and vendors they prefer. Also, the companies they work for are following suit with expanded travel policy guidelines to accommodate new services and payment methods. More than a footnote in history, it’s the kind of transformational change that will continue to shape the industry for years to come.
In the fourth quarter of 2016 Uber was the most expensed company among Certify’s accounts which outranked business travel staples like Starbucks which consisted of six percent of the transactions.
Airbnb represents about one percent of the overall lodging bookings in business travel and the service saw an upswing which is expected to continue till 2017. According to the data shared by Certify, Airbnb’s transactions doubled year-over-year since 2014, with longer stays of 4.51 nights compared to 2.58 nights at traditional hotels. “While still under 1 percent of the total, Airbnb’s growth is significant in this context,” the report reads. this means, although in its small share in business travel, Airbnb is already approaching the level of less popular hotels.
As far as the ground transportation is concerned, Uber still dominates business travel. The good news for lagging competitors in this area is that since spending overall is increasing, they’re not being completely pushed out of the space.