The Corporate World Is Ushering In A New Era Of Business Travel

Some office workers see business trips as a break from routine while others think they’re an interruption to be avoided at all costs.

But whatever your opinion, there’s no doubt that COVID-19 disrupted the status quo.

Getting back to business

With travel restricted, large gatherings essentially abolished, and companies everywhere shifting to remote work, the pandemic brought the business travel sector to a standstill. And even as leisure travel started to creep back up to pre-COVID levels, the number of business-related trips remained suppressed for years after the virus first began to spread.

Well, now there’s good news (or bad news, depending on your perspective). Current trends indicate that spending on business travel is expected to equal or exceed 2019 levels by the end of this year.

Business consulting agency Deloitte conducted a study to gauge the forecast and found:

• Almost 75% of managers say corporate travel spending will increase this year
• Well over half say they expect similar growth throughout 2025
• The average amount of increase they predict in both years is roughly 15%

More than just a number

While it’s helpful to take a look at spending, there’s a lot more to consider when comparing current travel trends to pre-pandemic levels. For starters, inflation has made things a lot more expensive, so the same amount of spending doesn’t buy as much travel.

To be sure, companies are doing their best to keep expenses down. About half are booking less expensive flights and more than one-third are hunting for discounted hotel rates.

And while a higher percentage of business travelers say they’ll take between 6 and 10 trips this year (20% compared to 15% last year), the nature of those trips is shifting. More of them are traveling to conferences and trade shows rather than to meet with clients.

Chris Agee July 18th, 2024

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