THE FORCES SHAPING BUSINESS TRAVEL

Skift Data Deck

A curation of charts and stats illustrating the trends impacting business travel worldwide.

HABITS OF THE MODERN BUSINESS TRAVELER 2

Overview The Forces Shaping Business Travel Data Deck paints a picture of the business travel landscape and the trends impacting the business traveler of the future through a curation of charts, stats, and data.

We’re looking at how mobile habits, the changing demographics of the workforce, and the rise of the sharing economy are shifting the corporate travel landscape, and how business travelers are becoming more independent than ever before.

HABITS OF THE MODERN BUSINESS TRAVELER 3

Section 1 6Business Travel Outlook

Section 2 11Mobile + Booking Habits

Section 3 19The Future Of Work

Section 4 26Rise of the On-Demand Economy

Executive Letter 5

Table of Contents

Conclusion 32

HABITS OF THE MODERN BUSINESS TRAVELER 4

About Lyft

About Skift

Lyft Mobility Solutions is bringing safe, on-demand ground transportation to thousands of organizations. Give your team more affordable, reliable rides wherever work takes them. Our account managers will work with you to build a custom solution and keep it running smoothly. Your team just downloads the app, and gets matched with a local driver at the tap of a button. Visit Lyft.com/work to learn more.

Skift is the largest industry intelligence platform providing media, insights and marketing to key sectors of travel. Through its daily news coverage on Skift.com, industry-leading Trends Reports, and SkiftX content studio, Skift is defining the future of travel. Want to work with us? Email skiftx@skift.com.

HABITS OF THE MODERN BUSINESS TRAVELER 5

Designing Travel for the New Traveler

In and outside of the Lyft community, we’re seeing a new type of traveler emerge. One who makes flight changes on her smartphone en route to the airport, schedules dinner with an old friend after her last work trip meeting, and embraces visiting new cities. We’re proud to partner with Skift to offer insights into the behaviors of modern business travelers.

Today’s employers manage teams who are more diverse, global, and connected than ever. However, it’s difficult to update travel programs at the same pace as team profiles change. The result: Over half of travel transactions made by millennials are not compliant with their company policies. Corporate travel programs — services, spending, and safety programs — need to evolve to fit modern business travelers’ lifestyles or they’ll find a workaround.

Through the Lyft platform, we help our partners access safe, affordable rides that are custom fit to their individual needs. From small businesses to Fortune 500 companies, we’re helping teams integrate ridesharing solutions into their travel programs every day.

The uncertainty that comes with a quickly changing, connected travel landscape also brings a huge opportunity. Suppliers who are creating solutions for plugged-in travelers can create smarter solutions based on vast amounts of behavioral data those travelers leave behind. We now have close to real-time visibility into traveler trends, and can keep improving custom solutions as more usage data surfaces.

Through data-driven solutions and conversations with partners, we’ve introduced a line of new product offerings for today’s business travelers and will continue to make them better. We look forward to seeing more innovative solutions to keep travelers safe and happy, however they choose to travel.

David BagaChief Business OfficerLyft Mobility Solutions

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Section 1 Business Travel OutlookAround the globe, spending on business travel is increasing with 2016 expected to be a record year. The biggest growth is in the Asian market, with China leading the way and edging out the U.S. in business travel spending for the first time. On the American front, spending associated with ground transportation adds up to the greatest business travel expense for U.S. companies.

HABITS OF THE MODERN BUSINESS TRAVELER 7

Spending on Business Travel Will Continue to Grow

SOURCE: GBTA: 2015

Total travel spending:$1.25 trillion

8

7

6

52015

+6.5%

+6.9%

+6%

+6.4%

+5.8%

2016 2017 2018 2019

Slow but steady growth is predicted for business travel around the globe. Companies are taking a more mindful approach to business travel, factoring in rising transaction costs and sending employees on less international trips.

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Top Global Markets for Business Travel Spending

SOURCE: 1. GBTA: 2015 2. GBTA: 2016

China

United States

Germany

Japan

United Kingdom

France

South Korea

Italy

Brazil

India

$291

$290

$64

$62

$47

$37

$32

$31

$31

$30

2015 Total BTS ($ Billions USD) 2

China edged out the U.S. in business travel spending for the first time. 95% of China’s business travel spending is for domestic travel.

United States

China

Japan

Germany

UK

France

South Korea

Brazil

Italy

India

$288

$262

$62

$58

$44

$36

$32

$32

$31

$26

2014 Total BTS ($ Billions USD) 1

HABITS OF THE MODERN BUSINESS TRAVELER 9SOURCE: 1. Asian Business Traveller Survey 2015 2. Amadeus 2013

Asian Business Travel Is on the Rise

Business travel spending in Asia-Pacific makes up 38% of the global business travel market.

2015-2018 business travel in this region will grow 4x faster than in the U.S. and more than 2x faster than in Europe.

From 2011-2030, there will be a 400% rise of female business travelers coming from Asian-Pacific countires.

HABITS OF THE MODERN BUSINESS TRAVELER 10SOURCE: GBTA 2015

Meal

Airlines

Miscellaneous

Lodging

Gas

Cell Phone

Car Rental

Supplies

Taxi

Shipping

Tolls

Parking

19%

17%

17%

14%

11%

5%

5%

5%

3%

2%

1%

1%

What U.S. Companies Are Spending Money On

Spending associated with ground transportation - gas, car rentals, taxis, tolls, and parking - adds up to the greatest business travel expense for U.S. companies at 21%, more than both meals (19%) and airlines (17%).

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Section 2Mobile +Booking Habits

Travelers around the globe are reliant on their smartphones, and business travelers are the biggest offenders. Better coverage and faster service are enabling travelers to stay constantly connected, allowing them access to information and the social universe while on-the-go. While mobile booking is still slow to catch on, business travelers are increasingly integrating smartphones and tablets into every step along the travel journey.

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Business Travelers Never Put Down Their Phone

SOURCE: 1. Adara 2014 2. GBTA 2015

97% of business travelers carry at least 1 mobile device.¹

78% say that access to Wi-Fi is vital to their work and expect it wherever they go, including hotels and airplanes. 2

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Reliance on Mobile Means Leisure Travelers Never Unplug

SOURCE: 2015 Expedia/Egencia Mobile Index

Over50% of travelers check in on

work at least once a day while on vacation.

23% of travelers have purchased inflight WiFi on a leisure trip in order to connect to work.

84% of travelers worldwide want to access information from anywhere while they travel.

60% of travelers say they agree they never truly “unplug” on leisure trips.

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Business Travelers Are Using Mobile To Research Trips...

SOURCE: Travel + Transport 2016

69% of business travelers turn to the web to research travel.

64% start their booking process with Search.

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But Not Necessarily Book…

SOURCE: 1. Travizon 2015 2. GBTA 2015

Laptop computer

Desktop computer

Smart phone

Tablet

None of the above

58%

43%

39%

25%

13%

Always

Sometimes

Never

2%

37%

59%

How often do you book business travel on mobile? 1

Top Devices Used to Book Hotel Accommodations for a Business Trip in the Past 6 Months: 2

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Deciding Factors for Travel Purchasing Decisions

SOURCE: 1. GBTA 2016 2. Expedia/Egencia Mobile Index 2014 3. Phocuswright 2016

33%Convenient schedule

When it comes to booking flights, convenience and cost are key. 1

When it comes to booking accommodation, amenities matter. 2

56%of travelers report that WiFi availability and pricing impact their purchasing decision when selecting a flight and hotel.

Price27%

Frequent flier miles and status / Travel reward points

20%

When ordering a ride-sharing service over a taxi, business travelers ranked convenience and ability to order from their phone key decision factors.³

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Average Booking Window for Business Travelers

SOURCE: 1. Concur 2016 2. Carlson Wagonlit Travel 2016

50.6% 25.0% 16.9% 7.5%

2015 Booking window 1

15+ days

8-14 days

4-7 days

0-3 days

The booking window for business travelers has remained steady over the years with the most common planning time of 15 days.

Though, a study from Carlson Wagonlit Travel found that female business travelers book 2-4 days earlier on average than their male counterparts.2

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In Mobile Apps, Business Travelers Really Want Utility And Convenience

SOURCE: 1. Travizon 2015 2. Expedia/Egencia Mobile Index 2014

Real-time flight info

Instant itinerary access / sharing

Please, don’t give me more apps I’ll never use

Weather / travel alerts

Local language translation

Other

52%

19%

13%

9%

1%

6%

Email/messaging

Camera/video recording

Maps/navigation

Social media

Weather

Utility (alarm, calculator)

Entertainment

61%

50%

47%

45%

38%

33%

24%

What are the most useful features in a business travel app? 1

Top uses for mobile on the road: 2

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Section 3The Future Of Work

Things are changing in the American workforce.

With more than 1 in 5 employees determined to leave their job at some point in 2016, it’s clear that the U.S. worker has become more independent than ever before. Led by the rise of the millennial workforce, which as of 2015 makes up the largest portion of the labor pool at 54.5 million and counting, and technology making virtual collaboration nearly seamless, employers are at a crossroads between the 9-to-5 careerists of yesterday and the liquid workforce of tomorrow. Reexamining business travel and corporate travel policies will be key for recruitment and retention of highly-skilled workers in the evolving work landscape.

Here are some of the factors making workers more independent:

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The Shift to a Service-Based Economy

SOURCE: Bureau of Economic Analysis

Finance, insurance, real estate, etc.

Government

Manufacturing

Professional and business services

Educational services, health care, etc

Wholesale

Retail

Information

Arts, entertainment, food service, etc.

Construction

Transportation and warehousing

Mining

Other services, except government

Utilities

Agriculture, forestry, fishing, and hunting

$3,293

$2,186

$2,080

$2,005

$1,388

$999

$956

$802

$623

$611

$490

$449

$361

$287

$269

Service IndustryProduction Industry

Gross Domestic Product by Industry in 2013 (Billions of Dollars)

Goods-producing jobs have diminished and service-based jobs have become the norm. In fact, four of the five high-est-grossing U.S. industries today are service-based.

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Technology is Enabling Productivity and Freedom

SOURCE: Adobe 2016

Cloud-based communication technology is enabling workers to collaborate seamlessly. From across the office to across the ocean, technology is fueling the worker’s need for independence, productivity, and flexibility.

81% say technology that helps them connect to colleagues more efficiently is important to their ideal workspace.

Workers believe technology makes them more productive (85 %),improves work-life balance (70%) and would make their workday better and easier (74%).

60% say tech gives them the freedom to work where and when they want.

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Technology Has Even More Promise for Future Workers

SOURCE: 1. PwC 2016 2. Adobe 2016

53%think technological breakthroughs will transform the way people work over the next 5–10 years. 1

64%of people around the world believe that tech will improve their job prospects. 2

53% of menial office tasks will be done by a machine or technology in the next 20 years. 2

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Millennials Have Overtaken the Workforce

2015Millennials had an estimated spending power of

$2.45 trillion, 1

of which $226 billion was set aside for travel. 2

202050% of all business trips will be taken by millennials. 3

2025Millennials make up 75% of the workforce. 4

SOURCE: 1. UMass Dartmouth 2015 2. Hotwire 2014 3. BCG 2013 4. Amex 2014 5. PwC 2011

75% of millennials believe that access to technology makes them more effective at work. 5

41% of millennials say they prefer to communicate electronically at work than face to face or even over the telephone. 5

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Millennials Are Spending More on Business Travel

SOURCE: 1. BCG 2013 2. Expedia 2013

60% more likely to report buying flight upgrades like extra legroom and in-flight entertainment during business trips. 1

Millennials spend 13% more on airline tickets than non-millennial business travelers. 1

37% spend more on room service when their companies are paying, compared to just 21% of 46-65 year-old business travelers. 2

Millennial business travelers are utilizing downtime on business trips to experience the local scene and are increasingly extending their time in-destination for microvacations. The convergeance of business and leisure (painstakingly known as "bleisure") is a rising force that mobile-minded workers have latched onto.

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Lines Are Blurring Between Business and Leisure Travel

SOURCE: 1. Bleisure Report 2014 2. Virgin Atlantic Survey 3. GBTA Business Traveler Sentiment Index 2015

Business travelers want to mix leisure with trips.

83% use time on business trips to explore the city they’re visiting. 1

65% percent extend business trips to explore a new country. 2

67% say it’s important to be able to extend their business trips for leisure. 3

But their travel policies don’t always allow it.

said YES

were UNSURE

said NO

14%

27%59%

When asked if their company had a corporate travel policy about “bleisure” travel1:

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Section 4Rise of theOn-Demand Economy

Broadly defined, the On-Demand Economy is an online marketplace in which technology companies connect consumers with immediate goods and services. With the press of a button, users can hail a ride, rent a room, hire a handyman, or order takeout from rated, customer-approved sources.

The immediacy and transparency of the on-demand services have re-engineered consumer behavior. From more reliable ground transportation to more cost effective lodging options, business travelers are increasingly embracing the On-Demand Economy.

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Annual On-Demand Economy Spending

SOURCE: 1. HBR 2016 2. Intuit QuickBooks Survey 2015

Average spending per year in billions of $US

$35.5 5.6 4.6 8.1 3.8

Other services

(i.e. Task Rabbit, Elance)

Online marketplace (i.e. Ebay, Etsy)

Transportation (i.e. Lyft, Uber)

Food/grocery delivery

(i.e. Instacart, Seamless)

All othercategories

As of 2015, the On-Demand Economy is attracting more than 22.4 million consumers annually and $57.6 billion in spending. 1

The On-Demand labor market will grow by 18.5% a year over the next five years and by 2020, 7.6 million people will be working in the On-Demand Economy. 2

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2010

2011

2012

2013

2014

2015(Projected)

Investor Funding ($M)*

$57

$392

$371

$672

$4,124

$15,140

Investment in On-Demand Economy is Accelerating

SOURCE: CB Insights 2015

More investment in this category will yield even more innovation and present new opportunities for business travelers to be more productive and independent.

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Growth of Ride-Hailing vs Taxi vs Car Rental

SOURCE: Certify 2016

55%

8%37%

50%

25% 25%

40%

46%14%

Q1 2014 Q1 2015 Q1 2016

Ride-Hailing TaxiCar Rental

23% decline in 2 years

Taxis have seen a 23% decline from 2014-2016 as consumers opt to use ride-hailing services instead.

According to data compiled by Certify, taxi fares were found to be 55% higher per ride than Lyft. Users also show higher levels of satisfaction using ride-hailing services when compared to taxis or car rentals.

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Airbnb’s Growing Impact in Business Travel

SOURCE: 1. Airbnb 2016 2. Certify 2016

Most Popular U.S. Cities for Airbnb

San FranciscoChicagoSeattleOakland

New York

Most Popular International Cities for Airbnb

Vancouver (Canada)London (UK)

Toronto (Canada)Mexico City (Mexico)

Sydney (Australia)

Since July 2015 - 50,000 employees from over 5,000 companies have booked for business travel. Companies saved an average of 30% on accommodations and travelers are staying twice as long overall, claims Airbnb.1

Business travel spending on Airbnb grew 261% in the U.S. and 249% overseas in between Q1 2015 and Q1 2016.2

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What business travelers want What corporate travel policy allows

Business Travelers Have Embraced theOn-Demand Economy

SOURCE: Travel + Transport 2016

of travel managers have received significant or fair amounts of interest in ride sharing services from travelers

77%travel managers say corporate travel policy does not address the sharing economy

70%allow travelers to expense ride sharing services

70%of allow travelers to expense Airbnb

18%of business travelers are considering Airbnb for their next trip

34%

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ConclusionAs the demographics of the workforce change, the millennial-led demand for flexibility and work-life balance is forcing an evolution in the way companies approach business travel. We’re at the start of a new era in which business travelers are given the freedom to design business trips the way they want. With mobile technology and the On-Demand Economy becoming more advanced and seamlessly integrated into our everyday lives, the rise of the independent business traveler is just beginning.

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