Business travel hit a screeching halt during the global pandemic. Jetting off to meet with clients, attending conventions, and other work-related travel—once an essential part of corporate life—came to a screeching halt in 2020. Companies quickly pivoted to remote work and virtual meetings to keep business moving.
As the world slowly recovered, some companies realized they could remain remote or adopt hybrid models instead of regularly meeting face-to-face. What does that mean for business travel?
The last few years have seen a “recovery rise” in business travel, gaining momentum with each passing year. As we move through 2024, business travel is continuing its comeback. In fact, according to a recent GBTA poll, nearly 60% of travel buyers expect more travel this year, with two-thirds anticipating increases in business travel spending. That’s a good thing.
And while that may be true, corporate travel is no longer business as usual. The way we do business has shifted, and along with it, so has why we travel for business.
Remote and hybrid work models are among the most significant changes to come out of the pandemic. Prior to 2020, only a small fraction of the workforce operated remotely—just 7%, according to the Pew Research Center. While many businesses were hesitant, they soon had no choice but to shut down and embrace working from home.
By October 2020, the number of remote workers skyrocketed to 55% as companies quickly adapted to the new reality. That number has settled every year following but is still holding strong. Today, about one-third of employees who can work remotely continue to do so. Video conferences, cloud-based project management, and digital communication tools became essential to keeping businesses running.
As the world gradually reopened, many companies discovered that remote work offered unforeseen benefits, such as increased employee satisfaction, improved work-life balance, and reduced overhead costs associated with office spaces.
This shift in where and how people work has also changed how businesses view travel. When employees are no longer gathering in an office every day, the reasons for business travel shift accordingly.
Shifting from in-person to remote work has had a broader impact on the business travel industry. Before the pandemic, trips were often centered around meetings with clients, conferences, or internal gatherings at corporate headquarters. While these activities still occur, the reasons for travel have morphed.
Today, employees are more likely to travel to connect with colleagues they don’t see in person regularly. With remote and hybrid workforces dispersed across various locations, companies are prioritizing travel that brings their teams together. As a result, companies have been rethinking the purpose and value of travel in a way that aligns with the new work environment.
According to the Global Business Travel Association’s 2024 Business Travel Outlook Poll, travel buyers cited the top travel spend allocations: 36% to sales and account management meetings, up 28% from the previous year; 20% to external conferences and industry events; and 20% to internal meetings with colleagues. The rest of their business travel budgets include 9% for service trips, down from 14% the previous year; 7% for employee training and development, 6% for supplier meetings, and 5% for other categories.
This means that business travel is now often focused on team-building activities, strategic planning sessions, and in-person collaboration. Trips are designed to foster connections among employees who typically interact only through screens.
“As companies and travelers continue to embrace the vital role of in-person connection for business, there are strong indicators for continued growth in travel volume and spending in 2024,” explained GBTA’s CEO Suzanne Neufang. “This bodes well for the future of our industry and its professionals—even as we navigate new challenges of ‘travel for work,’ continue to advocate for sustainable options, and evolve business travel programs so they’re fit for purpose.”
The evolution of business travel has had a noticeable impact on the industry. Travel management programs are being reshaped to accommodate the needs of a remote and hybrid workforce. According to the GBTA poll, 62% of companies now operate with a hybrid work model, and nearly half have already revised or are in the process of revising their travel policies to reflect that. The shift from centralized office work to more dispersed teams has prompted businesses to rethink the logistics of corporate travel.
Among travel managers in the poll, those who have addressed changes made the following modifications to their travel programs regarding what is permissible for reimbursement: 40% types of meetings allowed, 32% frequency to an office, 26% types of transportation, 22% per diems, and 20% accommodations. In addition, 40% of respondents say they do not currently plan to alter their travel program related to remote/hybrid employees.
Additionally, companies are increasingly factoring in sustainability and employee well-being when revising their travel policies. Many businesses are looking for ways to reduce their carbon footprint by encouraging greener travel options. Regarding employee well-being, some companies are addressing work-life balance by offering more flexibility around travel schedules and supporting remote workers. These evolving priorities are shaping the future of business travel in an increasingly remote-centric world.
From a financial perspective, remote and hybrid work have had varied effects on travel budgets. Some companies have seen increased costs as they adapt to new travel needs, while others report little change in expenses. According to the GBTA poll, 27% of respondents said their company’s travel program costs have increased to accommodate remote and hybrid employees, while 37% reported no notable change.
Despite these shifts, the importance of in-person connection remains. For many businesses, travel continues to be an essential tool for building relationships, both internally and externally, even in a world where remote work is more prevalent than ever.
Remote work aside, the year-over-year gains in travel spend have been encouraging. Eighty-three percent of travel buyers surveyed say their 2023 global business travel bookings increased—whether significantly (31%), moderately (37%), or slightly (15%)—versus 2022.
This momentum is expected to continue in 2024. Fifty-nine percent of buyers expect the number of business trips will increase at their company in 2024 compared to 2023, while only 11% expect employees will take fewer business trips in 2024.
As remote and hybrid work continue to be the norm, the business travel industry will continue to adapt. Companies will always prioritize travel that creates value, whether it’s fostering teamwork or maintaining client relationships.
Beyond the remote impact, there are other potential challenges on the horizon. The 2024 GBTA poll reported that industry stakeholders are concerned about the economy and its impact on business travel. More specifically, 66% are concerned about the rising cost of travel, 46% cited overall economic concerns, 42% are concerned that company budgets aren’t keeping pace, 32% are worried about travel disruptions, and 22% are concerned with geopolitical unrest. The impact on the climate and how AI affects travel processes were also of concern.
What does the future of business travel look like? Only time will tell. However, if recent history is any indication, the industry will continue to navigate the market’s ups and downs, adapting to the evolving needs of businesses. As remote and hybrid work become permanent fixtures, business travel will remain resilient, finding new ways to add value and foster essential connections in a changing landscape.
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