Allianz Global Investors, one of the world’s leading active asset managers, announced today the appointment of Matt Christensen as Global Head of Sustainable and Impact Investing. In this role, he will accelerate the growth of Impact Investing as part of the company’s growing private markets platform; lead the continued integration of ESG factors across AllianzGI’s existing range of public markets products, including stewardship activities; and support the development of new SRI products.
A new Grassroots Research survey of corporate travel managers and travel agents showed that US companies plan to increase their travel expenditures this year -- in line with Allianz Global Investors’ outlook for strong US economic growth.
Grassroots® Research recently conducted the latest in a long-running series of surveys with corporate travel managers and other travel experts: 64% plan to spend more on corporate travel in 2018
Not everything is looking up for travel trends: 12% of respondents to our business-travel survey said they will decrease spending in 2018 vs 2017, the second-highest year-over-year reduction since 2012
Our new Grassroots® study confirms a trend we’ve seen taking shape since 2013: convention attendance seems to be flattening out, if not falling slightly overall
In today’s competitive global economy, companies watch their travel budgets closely. When the economy is strong, travel costs frequently go up as well – but the opposite is also true. That makes business travel a bellwether for a region’s economic outlook.
A February 2018 study by Grassroots® Research – Allianz Global Investors’ proprietary in-house research division – showed that overall, US companies expect to spend more on business travel this year compared with last year. This is in line with Allianz Global Investors’ outlook for strong US economic growth.
Higher hotel costs and more-frequent international travel were cited by our survey respondents – a group that included US corporate travel managers and travel agents – as top reasons for increasing their budgets.
The Grassroots® Research team has conducted similar travel surveys over a multi-year period, which allows us to spot other developments:
64 per cent of respondents plan to spend more on corporate travel in 2018; this is consistent with the upward trend seen in previous years
24 per cent of respondents expect their travel expenditures to remain flat in 2018, down from 32 per cent the year before
12 per cent said they will decrease travel spending in 2018 vs 2017, the second-highest year-over-year reduction since 2012
Most companies plan to spend more on travel this year
Question: What is the outlook for your 2018 corporate travel spending vs 2017?
Source: Grassroots® Research. Data as at February 2018.
Our new Grassroots® study also confirmed another notable trend: convention attendance seems to be flattening out, if not falling slightly overall.
Fewer respondents plan on sending additional employees to conferences in 2018 (4 per cent); this number has been moving consistently lower since 2015
Conversely, more respondents plan on sending the same number of employees to conferences in 2018 (88 per cent); this is a marked increase over the 24 per cent who gave a similar response in 2015
Every year since 2013, 8 per cent of respondents have told us they plan to cut convention attendance by their employees
Signs of constrained attendance at meetings and conferences
Question: How does the number of employees expected to attend business meetings & conventions in 2018 compare to the number attending in 2017?
Source: Grassroots® Research. Data as at February 2018.
For the latest 2018 survey, our Grassroots® Research team also examined whether heightened global security concerns are having an effect on corporate travel.
Approximately four-fifths of our respondents told us they have not made any specific policy changes stemming from security concerns
At the same time, around one-fifth of sources said they are examining their “duty of care” programs – which cover their companies’ obligation to take care of travelling employees’ health and safety – or hiring global risk managers and consultants
Senior Consumer Analyst Jon Wolfenbarger said he found this survey helpful in confirming his expectations for improving lodging demand in 2018: “This research suggests that corporate travel budgets could increase by 4 per cent, aided by a stronger global economy and US tax cuts. Employee safety is also another interesting theme, with 20 per cent of corporate travel managers looking closely at duty-of-care programs that help guard employees’ well-being and reduce liability.”
Grassroots® Research is a division of Allianz Global Investors that commissions investigative market research for asset-management professionals. Research data used to generate Grassroots® Research reports are received from independent, third-party contractors who supply research that, subject to applicable laws and regulations, may be paid for by commissions generated by trades executed on behalf of clients.
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About the author
San Francisco, California
Ms. Wong is a research analyst and an assistant vice president with Allianz Global Investors, which she joined in 2015. She is a member of the Grassroots® Research team, a division that commissions proprietary and customized investigative research, where she manages market research projects for asset-management professionals. She was previously a research associate at Dow Jones. Before that, Ms. Wong was an undergraduate instructor and lecturer at San Francisco State University; she also held a variety of research roles at UCSF Medical Center, UCLA and San Francisco State University. Ms. Wong has a B.A. in psychology and sociology from UCLA, and is a master’s degree candidate in developmental psychology at San Francisco State University.
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