A review of business travel has found a year-on-year rise in the number of transactions but a month-on-month dip in the average transaction value for the first time since 2020.
The latest Global Business Travel Review, published by The Advantage Travel Partnership and Travelogix, considered performance in the first half of 2024.
It found new transactions were 17.3% higher than in the same period of 2023, representing a performance that bettered the most ambitious forecast of a 15.5% increase year-on-year.
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But the average transaction value fell by 2.7% in shifting from £428.82 in the first half of 2023 to £417.54 in the first six months of 2024.
The review also found a drop in the average trip duration, which fell from 6.95 days in 2023 to 5.76 days for the first half of 2024. This represents a decrease of 17.39% compared with the first half of 2023.
Bookings in business and first-class travel have also decreased, the report stated, meaning economy class bookings have grown from a 71.3% share in 2023 to 78.9% in the second half of 2024.
Addressing the slide in average transaction value, the report stated: “In summary, more bookings were made in H1 2024 but at a lower average value than in H1 2023.
“Ultimately, this could have resulted in overall sales being north of what travel management companies anticipated, thus increasing revenue, but average revenue and yield per booking are likely lower.”
The average transaction value slipped each month from January to June, falling from £466.05 to £364.21.
The greater-than-anticipated rise in the number of transactions was attributed to the UK general election being called in June – for a polling day in July – rather than in the second half of the year.
The report stated a significant downturn can be expected in the run-up to the US presidential election in November.
The next review will be published in the final quarter of the year.