business travel 2023 trends

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• Dec 21, 2022

2023 Outlook: Business Travel Bounces Back

Corporate travel budgets are recovering to pre-covid levels, our new survey finds. see where companies are spending in the year ahead..

After grinding to a near halt during the COVID-19 pandemic, business trips—and profits for hotels and airlines catering to higher-paying corporate clients—are bouncing back even beyond pre-pandemic levels, per a recent survey from Morgan Stanley Research.

Despite higher airfares and room rates, the survey of 100 global corporate travel managers found that many respondents believe their company's travel expenditures are already back to pre-pandemic levels and will continue to grow. The biggest demand is coming from small companies, which means lower-cost airlines may benefit the more than their bigger peers.

“Travel budgets are expected to see a noticeable improvement in 2022, with 2023 nearly back to ‘normal,’” says Ravi Shanker, an equity analyst covering North American transportation.  “Most interesting is that nearly half of the respondents expect 2023 budgets to increase versus 2019 overall. And of those that expect an increase in budgets, the majority believe 2023 budgets will be between 6% to 10% higher than 2019.”

Overall travel budgets show an improvement over previous surveys, with 2023 budgets expected to be 98% of 2019 levels on average.

Survey Highlights

•   Smaller companies lead demand for corporate travel. More than two-thirds (68%) of companies with under $1 billion in annual revenue expect travel budgets to increase next year, versus just 41% of companies with annual revenues over $16 billion. Similarly, 32% of smaller companies said travel budgets had returned to pre-pandemic levels compared with 23% of big firms. “This trend could likely favor low-cost carriers, as smaller enterprises tend to be more localized and require less long-haul travel,” says Shanker. “However, the legacy carriers with strong corporate exposure should see gains as well.”  

Nearly a quarter of both large and small companies say their firms are already back to pre-COVID travel levels, and 34% anticipate a full recovery by the end of 2023.

ESG Rate of Change

Holiday budgets hit by inflation, seeing a peak for food prices.

•   Airfares are higher, but that’s not a drag on bookings. On average, corporate airfares are expected to be about 9% higher than pre-pandemic prices. “Clearly the expected increase in corporate airfares is not having a major impact on corporate travel as passenger volume is expected to be basically flat versus 2019,” says Shanker.
• Room rates will continue to rise, though not as fast as they have recently. As of this October, market room rates had spiked 20% to 25% over 2019. Next year they will rise even more, though by an average of just 8%, say respondents (9% in the U.S. and U.K.; 5% to 6% in Latin America, Asia and Africa).
• Hotels face economic and competitive headwinds. While overall travel budgets are growing, companies are cutting costs by trading down when it comes to accommodations. (Historically, budget hotels outperform upscale lodging in tough economic times.) Alternative sources of accommodation also threaten traditional hotels, with 31% of respondents saying they intend to use short-term rental services in the next year.
• Virtual meetings aren’t going away.  Almost 18% of corporate travel will be replaced with virtual meetings, falling slightly to 17% in 2024, suggesting a degree of permanence in the shift with companies recognizing the benefits of virtual meetings ranging from cost savings to lower carbon footprints. Expect companies providing collaboration software to gain from this shift.

For more Morgan Stanley Research insights and analysis on global travel, ask your Morgan Stanley representative or Financial Advisor for the full reports, “Global Corporate Travel Survey: Snapping Back" (Nov. 8, 2022) and “Global Corporate Travel Survey: 2023 Travel Budgets Nearly Back to 2019 Levels, but ~20% of Meetings Could Still Shift to Virtual” (Nov. 8. 2022). Morgan Stanley Research clients can access the reports directly here and here . Plus more Ideas from Morgan Stanley’s thought leaders.

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Business Travel Trends in 2023

While doing business face-to-face is bouncing back after the pandemic, the corporate travel industry is still very much in recovery.  Here’s what to expect from business travel trends in 2023.

>> Related: Corporate Travel Trends from Our Survey with Skift <<

Source: Bloomberg Law

While there is no longer a shortage of travelers, there are new challenges: 

• 87% of hotels have persistent staff shortages ( source )
• The United States has a deficit of about 8,000 pilots, or 11% of the total workforce ( source )
• TSA is in a hiring crisis amid stagnant wages ( source )
• Airfares are rising 5x faster than the overall inflation rate ( source )
• Hotel rates are up 19%

The net impact on business travelers?  One in four flights have been delayed in 2023, and travel is costing ~30% more per trip.

Higher travel costs and unreliable flights will strain businesses in 2023

Unfortunately inflation, staffing shortages, and uncertain flights will affect not just the traveling employee, but also their manager and the finance department.

Business travelers should:

• Plan for long check-in and security lines at the airport, even with TSA pre check.
• Prepare for flights to sell out quickly.  Book as soon as you can.
• Expect flights to be delayed – be conservative with your itinerary, and don’t schedule optimistic meetings or airport transfers.
• Prepare to rebook canceled flights.  Save your company’s travel agency number in your phone so you don’t have to wait in line with hundreds of other stranded passengers.

>>Related: The New Era of Corporate T&E <<

Managers should:

• Prepare to manually field far more policy-exceptions for expensive flights.
• Triage travel or re-allocate budgets – with each trip costing ~30% more, you’ll exhaust travel and expense budgets faster.

Finance departments should:

• Urgently update travel policies, pricing limits, and per diems to reflect 2023 pricing.
• Create dynamic policy parameters that aren’t capped at arbitrary or outdated prices.
• Partner with travel agencies that have seasoned agents available 24/7 to rebook canceled flights.
• Explore incentives and reward employees who book under budget .  On average, we see businesses trim 30% of their travel budget after implementing rewards.

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Home » Features » Six business travel trends in 2023

Six business travel trends in 2023

• January 16, 2023

[Credit: Rob Wilson on Unsplash]

[SPONSORED CONTENT] Cvent highlights some key findings from its latest Travel Manager Report and how venues can best capture demand in 2023.

Corporate travel is, apparently, back! According to the new Cvent Travel Manager Report: Europe Edition December 2022 , corporate travel managers seek value, sustainability, and cost-cutting opportunities in 2023.

The challenge for hotel teams is to show they have the facilities and technology to handle demand and put their venues at the front of the queue.

Cvent commissioned Censuswide, an independent research company, to survey 514 corporate travel decision-makers in the United Kingdom, France, Germany, Spain, Italy, and the Netherlands, between October 20th and November 2nd, 2022. Here’s what they found:

1. Business travel will be robust and international

In total, 72 per cent of travel managers expect their business travel volume to increase either somewhat (46 per cent) or significantly (26 per cent) in 2023, when compared to 2019. Just 13 per cent say they will likely see a decrease in the travel volume of their business in 2023 relative to 2019.

Supplier takeaway

With three in 10 travel managers expecting business travel to grow significantly in 2023 compared to 2019, and a further 46 per cent believing it will increase to some extent, the opportunity for hotels is clear. Venue teams must ensure they’re engaging now with travel managers – and be prepared to respond to an influx of RFPs.

Download the full report for country-specific data, charts, and additional commentary .

2. Rising costs spur budget increases 

Eighty-one per cent in total say their budget will rise, including 26 per cent who predict it will increase significantly. Only around one in six travel managers (15 per cent) believe their budget will decrease.

Set against the expectation of budget rises is a predicted increase in travel costs. In fact, 83 per cent of travel managers believe costs will be higher in 2023 than they were in 2019, with around a third of them (33 per cent) believing prices will increase significantly.

Hotels must now focus on available opportunities to increase revenue per visitor. With fewer people travelling but more events planned, providing incentives for people to spend on expenses or from their own pockets is vital. Use of technology can help venues understand what experiences and additional services visitors would like them to provide.

3. Travel managers have new needs when sourcing hotels 

With budgets under pressure due to rising costs, travel managers are increasingly asking whether trips are truly necessary, and how each one fits into a new formula of cost and value.

Almost half (46 per cent) of travel managers say they are more closely assessing whether a business trip is needed. Once they’re certain it is – with the option of virtual events also available as an alternative – they rigorously compare hotels on a shifting set of priorities: cost, flexibility and sustainability.

Once the decision is made, new factors come into play during the sourcing process. Hotels should pay heed to these changing priorities. With choice revolving around price, flexibility and sustainability, venues must demonstrate their value for every element to keep ahead of their competition.

4. Demand for sustainable travel takes off

An environmentally aware approach to business travel programmes is front-of-mind for many travel buyers. Ensuring a level of sustainability in decision-making is a key part of sourcing strategies – third only in the list of planning priorities (37 per cent) that are now more important than they were pre-pandemic.

Sustainability is also having a direct impact on choice of venue. In total, 89 per cent of travel managers say this factor influences which hotels they book as part of programmes, with almost a third of them (32 per cent) claiming sustainability concerns play a significant part in selection.

Organisations in many sectors are keen to demonstrate a commitment to sustainability – corporate travel is no different. With a large majority of travel managers prioritising environmentally-friendly options when sourcing for programmes, hotels that can showcase their sustainable practices, awards, or facilities on platforms like Cvent Transient , will have the edge in 2023.

5. Interest in dual or dynamic rates increasing

Cvent’s Travel Managers Report – Europe Edition , published in June 2022, revealed almost two-thirds of travel managers (62 per cent) were open to discussing dual or dynamic rates.

In our latest study, even more (69 per cent) say their interest in such an approach has increased for the 2023 RFP season, with 20 per cent of that total stating their openness to dual or dynamic rates has risen significantly. Travel buyers in Spain are the most interested (80 per cent), although a large minority of those in the UK (38 per cent) remain to be convinced.

Interest in dual and dynamic rates as a way to make corporate travel and venue hire more cost-effective is clear. To win business in what will certainly be a competitive market in 2023, hotels must understand their potential customers’ rate strategy and expectations.

6. Travel buyers also plan events 

It might not come as a shock to discover that 90 per cent of travel buyers are also the people responsible for planning. Travel managers in Italy are the most likely to also have oversight of event planning as part of their remit (98 per cent).

It’s vital to take note of the full list of duties that travel buyers oversee. Post-pandemic, many have several hats to wear: 46 per cent have assumed dual remits since 2020. Venue teams should enter negotiations fully on top of the detail of business travel sourcing and event sourcing information, to present a compelling and competitive case to win hearts and minds – and the business.

Want the country specific data, graphs, and even more commentary? Download the Cvent Travel Manager Report: Europe Edition December 2022 !  

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5 emerging business travel trends to expect in 2023.

December 5, 2022 by Travel Maestro Leave a Comment

No one can definitively say what 2023 will bring to business travel but as post-pandemic travel resumed throughout 2022, we saw trends developing. Here are five business travel trends that are expected to strengthen in 2023.

Biometrics will make travel more efficient.

Biometrics, or unique physical characteristics such as fingerprints, are now common in payment apps such as Apple Pay and Google Pay. Travelers can expect increased opportunities to use these and other touchless payment systems for travel options like in-flight purchases, hotel upgrades, and train tickets.

COVID-19 forced airlines and airports to reduce touchpoints so biometric technology was readily adopted. A bonus effect is an operational efficiency and time savings for the traveler.

• Biometric check-in and baggage drop systems were piloted in Chicago’s O’Hare and New York’s LaGuardia airports, cutting travelers’ time spent by 30%.
• Los Angeles International Airport’s $1.7 billion terminal expansion uses contactless boarding gates. It can board 400 people in 20 minutes, half of the normal boarding time.
• International business travelers will see immigration and border control speed up at 27 U.S. airports with the use of facial recognition technology.
• Airports will increasingly use fingerprint and retinal scanning technologies for security.

With the growing use and acceptance of biometric-based screening, one day your face may be the only ID you need to carry.  

Blended travel continues to increase.

Bleisure travel , the combining of business and leisure travel, has been a business travel trend for several years and there is no indication that it’s going away. Most employees now see business travel as a perk and an enriching experience and enjoy extending for personal motives.

• Younger members of the workforce often want to advantage of a business trip by adding on some vacation time and exploring the new destination’s sights, activities, and food.
• More than half of international business travelers indicated they are willing to extend their trips for leisure activities.
• Many business travelers bring family along, contributing to their work/life balance and well-being.

Work-from-anywhere policies become normalized.

Office shutdowns during the pandemic showed many businesses that it is possible to keep the company functioning while people work remotely. As a result, many of those adjusted their policies and now allow business travelers to become digital nomads. Not all job positions are suited to remote work, but for those that are, countries such as Costa Rica, Georgia, Croatia, Iceland, and Germany created programs and incentives to attract digital workers to make a temporary base there for a month or more.

Another development stemming from remote workforces is the trend for team business travel. Since employees don’t have the proverbial “water cooler” office experience, team meetings and retreats allow colleagues to bond and strengthen relationships. Experts expect a significant increase in team travel programs because they effectively motivate teams, improve employee satisfaction, strengthen company loyalty, and unlock creativity.

A demographic shift is afoot in business travel.

The Millennial generation (born 1981-1996) is firmly entrenched in the corporate workforce now. Generation Z (born 1997-2012) is currently the smallest generation in the workforce, but they are undoubtedly its future. These age groups have different ideals than the traditional business traveler of the past. They want more flexible work models, value work/life balance, and require better mental health on the job.

One business travel trend that exemplifies this shift is the preference for non-traditional accommodations. Studies show that in 2019, over 70% of millennial corporate travelers stayed in boutique hotels or home-like rental accommodations. More travelers stay further away from the city center prioritizing comfort and proximity to leisure activities.

Younger employees prefer remote work and Millennials are particularly inclined to take advantage of leisure travel because of the high value they place on “travel and seeing the world.” Gen Z is the first generation to have internet access, social media, and connected devices since birth. They have an intuitive aptitude for technology and are likely to incorporate it into their business travel in multiple ways. Millennials and Gen Z also have an amplified concern for global sustainability.

Sustainability influences business travel trends.

It’s no secret that travel, air travel emissions, in particular, have a large impact on the environment. It’s also a fact that travel generates growth and is key to building and maintaining business relationships. Therefore, sustainability is one of the hottest topics trending in business travel.   

Global Business Travel Association (GBTA) found that 89% of companies are making sustainability a priority. While there are many ways to effect change , it begins with assessing the true carbon costs of travel, creating a strategy, and educating travelers on the environmental effects of travel.  

Some sustainability trends in business travel include:

• Updating corporate travel policies by increasing traveler options to balance business costs with employee well-being and sustainability. For example, offering more flexibility in property and rate options, allows employees to align their own needs with company policies.
• Companies prioritizing green hotels in corporate online booking tools and making sustainability-related information a prerequisite for preferred supplier status.
• Providing education for travelers on best practices and technologies that help reduce their carbon footprint.
• Travelers choosing direct flights, using trains when possible, and choosing the most sustainable hotels.
• Travelers packing lighter or even suitcase-free to reduce the airline’s load factor. For example, consider renting golf clubs instead of taking your own with you.
• Organizations and individuals purchasing carbon offsets to compensate for the emissions their travel causes.

Will you adopt any of these emerging business travel trends in the coming year? If you have already, you are one of the trend setters!

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Business Travel’s Rebound Is Being Hit by a Slowing Economy

By the early fall, domestic business travel was back up to nearly two-thirds of its prepandemic level. But companies have now begun to cut back.

• Share full article

By Jane L. Levere

Business travel came back this year more strongly than most industry analysts had predicted in the depths of the pandemic, with domestic travel rebounding by this fall to about two-thirds of the 2019 level.

But in recent weeks, it appears to have hit a new hurdle — companies tightening their spending in a slowing economy.

Henry Harteveldt, a travel industry analyst for Atmosphere Research, said that corporate travel managers have told him in the last few weeks that companies have started to ban nonessential business travel and increase the number of executives needed to approve employee trips. He said he was now predicting that corporate travel would soften slightly for the rest of the year and probably remain tepid into the first quarter of 2023.

Mr. Harteveldt also said his conversations led him to believe that business travel would “come in below the levels airline executives discussed in their third-quarter earnings calls.”

Airlines were bullish on those earnings calls, a little over a month ago. Delta Air Lines, for one, said 90 percent of its corporate accounts “expect their travel to stay the same or increase” in the fourth quarter. United Airlines, too, said its strong third-quarter results suggested “durable trends for air travel demand that are more than fully offsetting any economic headwinds.”

Hotels, too, were optimistic. Christopher J. Nassetta, president and chief executive of Hilton, said on his earnings call that overall occupancy rates had reached more than 73 percent in the third quarter, with business travel showing growing strength.

The change in mood has come as the economy has more visibly slowed. Technology companies, in particular, have been announcing significant layoffs. Housing lenders have also been reducing staff, as rising mortgage rates cut into their business.

The travel industry has long relied on business travel for both its consistency and profitability, with companies often willing to spend more than leisure travelers. When the pandemic almost completely halted business travel in 2020, people were forced to meet via teleconference, and many analysts predicted that the industry would never fully recover.

But business travel did come back. As the economy reopened, companies realized that in-person meetings serve a purpose. In a survey taken in late September by the Global Business Travel Association, a trade group, corporate travel managers estimated that their employers’ business travel volume in their home countries was back up to 63 percent of prepandemic levels, and international business travel was at 50 percent of those levels.

One reason international business travel has not come back as strongly, Mr. Harteveldt said, is that some employers have imposed restrictions on high-priced business-class airline tickets for long-haul flights. He said employers are instead requiring travelers to take a cheaper connecting flight or to fly nonstop in premium economy or regular economy class.

“Travelers are telling managers they won’t fly long-haul in economy if they have to go directly to a meeting when they arrive,” Mr. Harteveldt said.

What will business travel look like in the next year?

Pandemic travel restrictions will probably play less of a role. A survey by Tourism Economics, U.S. Travel Association and J.D. Power released in October found that 42 percent of corporate executives had policies in place restricting business travel because of the pandemic, down from 50 percent in the second quarter. Over half expected pandemic-related business travel policies to be re-evaluated in the first half of 2023.

With Americans able to work remotely, many are combining professional and leisure travel, airline and hotel executives said on recent earnings calls. That was a big reason travel did not drop off in September, when the peak vacation period ended, as it used to in years past.

Jan Freitag, national director for hospitality market analytics at CoStar Group, said hotel occupancy by business travelers currently varies by market, with occupancies high in markets like Nashville, Miami and Tampa, Fla. — places where business travelers may well be taking “bleisure” trips. But hotel occupancies by business travelers are low in markets like Minneapolis, San Francisco and Houston.

Mr. Freitag said the lower hotel occupancies in some cities may reflect a lower return-to-office rate in those places, which reduces the ability to have in-person business meetings.

Mr. Freitag said he was “very bullish on group travel, trips for meetings, association events, to build internal culture.” Those trips will recover more quickly, he predicted, than individual business travel.

“It’s all about building relationships,” he said. “It’s very hard to do that online.”

On the other hand, short business meetings and employee training sessions may continue to be conducted online, which is less expensive than in person, said Grant Caplan, president of Procurigence, a consulting firm in Houston that advises companies on their spending for business travel, meetings and events.

Even as business travel has resumed, hotels, airlines and airports still have inadequate staffing. A survey of hoteliers by the American Hotel and Lodging Association, a trade group, released in October found that 87 percent of respondents were experiencing staffing shortages. Although that was an improvement over May , when 97 percent of respondents said they were short-staffed, the current findings do not bode well for smooth hotel stays.

Disruptions in flying, particularly in the United States and Europe — because of weather delays, inadequate flight crews or air traffic control and security issues at airports — have been notoriously high, particularly earlier this year.

Although “we can’t say that these disruptions have discouraged business travel, they have clearly complicated” the experience for travelers, said Kathy Bedell, senior vice president of the Americas and affiliate program for BCD Travel, a travel management company.

Kellie Kessler, a pharmaceutical clinical researcher in Raleigh, N.C., said the travel disruptions she faced this year were too much. She changed jobs recently to take one that requires her to travel on business 10 percent of the time, compared with 80 percent in her previous position.

“The reason I took a nontravel position is that I can count on one hand the number of on-time flights I had this year,” she said.

And flight disruptions have led to a decline in some road warriors’ loyalty to airlines, even those who have accrued elite status in the carriers’ frequent-flier programs.

“The disruptions overall have caused me to be less loyal to any one airline,” said Trey Thriffiley, chief executive of QIS Aviation Group a consulting company in Savannah, Ga., that advises individuals and companies about their use of private jets. He is also an elite member of the loyalty programs at Delta, United and American Airlines. “Instead of searching by preferred airline or even cheapest price,” he said, “I search for direct flights or connecting flights to cities closest to where I live that I can drive home from if I need to.”

Airlines’ bullish forecasts notwithstanding, some experts find prospects for business travel this fall and next year extremely murky.

They say they cannot accurately predict how strong business travel will be and what airfares and hotel room rates will look like because of many unknowns, including the duration of the war in Ukraine and its impact on the European and global economies; increasing gasoline and jet fuel prices; and rising inflation, recession fears and political uncertainty.

Mr. Harteveldt, the travel industry analyst, said the recovery of business travel varies by geographic region, with the United States rebounding faster than Europe.

He said the Chinese government could be using its reopening strategy “in a geopolitical way,” adding, “If a country is more friendly, China will grant access to that country’s business and leisure travelers rather than to travelers from countries with which China has greater political differences.”

He predicted that 2023 would be a “difficult year” for business travel unless the war in Ukraine “comes to an abrupt end and there is more certainty about oil and the price of jet fuel.” Also a factor, he said, could be decisions by companies that may have added too much staff during the pandemic to save money by reducing business travel rather than by laying people off.

“If there’s a symbol that can be used to describe the outlook for business travel in 2023, it’s a question mark,” he said. “No airline, travel management company or travel manager can be 100 percent certain what 2023 will bring right now. It’s one of the most confounding, confusing times to be in business travel, perhaps in decades.”

In a report issued in August, Mike Eggleton, director of research and intelligence at BCD Travel, had a similar take on the immediate future for business travel. “Producing a credible travel pricing forecast in the current environment is incredibly difficult,” he wrote. “The near-term travel outlook is more uncertain than ever. Volatility has never been so high and seems likely to persist. There’s vast variation in market performance and outlook.”

Going forward, Ms. Bedell said, perhaps the overriding question about business travel will be whether the trip is necessary.

“Client-facing and revenue-generating travel is taking a priority over internal meetings,” she said.

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Business Travel Trends for 2023: Expectations and Projections

Both the business and leisure travel industries faced serious changes during the pandemic. But while leisure travel is back and stronger than ever, the face of business travel seems to be forever changed. 

The shift to remote work and virtual meetings made it clear that the 9-to-5 office model was becoming one of the past. Stemming from concerns about employee safety, this idea has grown into an understanding that technology can be used to allow more flexibility to employees when it comes to working hours both in and out of the office. 

As a result, the corporate travel industry in a traditional sense has changed and is expected to continue on this new trajectory. While fewer people may be taking trips for strictly work purposes, the ability to work from anywhere is undoubtedly shaping the future of business travel. 

1. Everyone, everywhere, all at once

If there is one thing the pandemic taught us, it is that if there is a will, there is a way – companies of all shapes and sizes powered through, despite the inability to meet face-to-face for almost two years. 

And much of this is thanks to technology allowing for connectivity regardless of physical location. 

Meetings were held on Zoom instead of in person, and emails and other modes of digital communication kept people connected.

The ability to work from anywhere allowed employees to discover a new meaning of work-life balance, which has extended long past the initial days of the pandemic. As a result, many companies have chosen to continue to allow their employees to work from anywhere. 

The notion that anyone can be anywhere regardless of physical distance, combined with the need to make up for lost time (otherwise known as “revenge travel”) has created a new kind of trip that combines business and pleasure.

This new era of travel is marked by people who are traveling for fun and working remotely along the way. In fact, 82% of airline executives reported that they expect the combination of business and leisure travel to be more prominent than ever in a post-pandemic world. 

While what we once considered a “business trip” may not be as common anymore, people are taking more trips for longer periods of time because they now have the ability to work from anywhere. 

2. Workcation expectations

The shift to “bleisure” travel presents a new set of expectations and needs from the travel industry. For one, these business travelers are looking for efficiency and personalization when it comes to booking their trips. They want the ability to plan trips quickly and ensure that they will have everything they need during their travels to enable both work and relaxation.

Bleisure travelers need to know in advance that they will have access to things that make remote work possible, like access to WiFi throughout their trip. Automated travel systems allow travelers to find the best located and highest reviewed places that can accommodate their needs with just a few clicks. Booking trips via this technology makes the process more seamless than ever before, so travelers can focus on more pressing matters.   

The industry is paying attention to these needs. One survey reported that 92% of travel agencies want the support of new technologies to help enhance the customer experience. With the help of this new technology, the corporate travel industry is evolving into a system that can adapt to these changes in business travel. 

3. Slow return to corporate travel

While the gap between business and leisure travel is much more narrow than it once was, strictly corporate travel has still fallen short of overall expectations, with only 17% of travel managers expecting a full recovery by the end of 2022. There are a number of factors pointing to reasons why.

For one, travel costs are higher than ever and many companies are not able to foot the bill. That being said, there is no replacement for face-to-face contact, so corporate events and retreats are likely to continue to take place, at least for larger companies. 

Conferences and events are still sparse in 2022, with 57% of live events still taking place online, with low attendance and high costs to blame. They are likely to return in the future, however, due to the invaluable networking and partnership components.   

Another factor is a higher awareness of sustainability priorities. More than 400 companies signed the 2021 Davos World Economic Forum pledge to decarbonize by 2050. As a result, a projected 10% less is likely to be spent on corporate travel by these companies by 2025. 

The current climate certainly presents a new set of challenges to the corporate travel industry. Some of these changes may affect long-term trends, while others will be more short-lived. That being said, there are also many new opportunities for travel providers to grow. 

It is possible to adapt to this new world of corporate travel through the implementation of new technologies and understanding the changes in the industry. This new technology makes it possible for travelers of all kinds to personalize travel more easily than ever before. The new era of travel is marked by complicated travelers looking for simple solutions.

If you’re looking to stay ahead of the curve and on top of the trends, having the right travel software is vital. Travel Booster provides you the agility you need to do just that, wrapped inside innovative travel technology that will also boost your efficiency and profitability.

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Expected Business Travel Trends in 2023

Business travel has always been an industry subject to constant change.

The travel and tourism industry has rightly prided itself on its ability to adapt to new circumstances and requirements, adopt innovative technology and working methods and pioneer new approaches to making the life of the business traveller more efficient, safe and productive.

However, in recognising that ability to be fleet of foot and welcoming to business travel trends, it’s also important to highlight the many significant challenges which travel managers have had to face and will continue to confront in maintaining high standards of global business travel .

How has business travel changed over the past few years?

It would be difficult to identify many – if any – sectors of the business world which have been unaffected by the pandemic.

But for the business travel industry and, particularly for international business travelers, the impact of the global health crisis has been genuinely unprecedented.

By its nature, the corporate travel market and the business trips which it enables, depend on the ability to move freely across cities, countries and continents.

That ability was, of course, severely limited at the height of the pandemic and, even now, restrictions remain due to the continued threat which the COVID-19 virus poses to global health.

That was highlighted again at the beginning of 2023 with the introduction by a number of European countries, including the UK, of COVID testing for passengers arriving from China.

It was a move which signaled how swiftly the corporate travel industry can be affected by events beyond its control and emphasised how important it is for travel management companies to be aware of the threat of similar health crises in future.

Besides the complexities with these health risks, we have seen various other changes off the back of the pandemic, some of which are listed below:

Depleted capacity of resource in airports, airlines & hotels causing problems with travel delays.

Frequent cancellations & adjustments to travel schedules due to the capacity issue.

Disruption is no longer limited to peak times, making it harder for business travellers to plan their business trips.

A need to overhaul travel policies.

Increased focus on sustainability.

On the plus side, the travel industry’s response once the worst of the pandemic had passed demonstrates how resilient the business travel sector is despite the challenges it faces.

At the same time, the pandemic is just one of many external events which has had – and will continue to have - a significant impact on travel companies and corporate travelers and on the way in which business trips are organised.

In the last year alone, further upheaval has been created as a result of unanticipated events such as the Russian attack on Ukraine, the cost of living crisis and the huge rise in energy prices. Not to mention various cyber attacks on SAS airlines and multiple rail & airline strikes which has led to capacity caps at numerous airports.

Added to that, the UK’s departure from the EU continues to create issues for business travellers and for the industry’s ability to retain and attract the people it requires to match the growing demand.

All these factors have, to some extent, led to a scenario in which many corporate travelers are now seeing airports, airlines, hotels and car fleets on their business trip all affected by reduced capacity and resources as well as more frequent cancellations and schedule changes.

And, like many other sectors, the corporate travel industry continues to work diligently to become more sustainable and to find ways to service business professionals while also reducing its carbon footprint.

In summary, the world of corporate travel management has changed immeasurably in the past two years alone and there is nothing to suggest that the pace of change will slacken in the years ahead.

Is corporate travel still important for business success?

All the indications are that, despite challenging economic and geopolitical circumstances over the past few years, demand for corporate travel is showing signs of strong recovery for 2023.

While earlier predictions of a $1.4 trillion annual spend have now been revised, the Global Business Travel Association (GBTA) has forecast a $1.2 trillion spend for business travel in 2023.

The simple reason for that is that business travel remains absolutely essential because of its key role in reconnecting organisations both internally but, equally importantly, with external stakeholders in the commercial marketplace.

The enormous increase in remote working since the pandemic has been well documented and while many companies have now adopted a hybrid model which combines office and home working, it’s clear that, for an increasing number of organisations, working remotely is an option which many people want or expect and one which is here to stay.

However, making personal connections is invaluable in the commercial world and there is no replacement for a face-to-face meeting, whether the purpose of that is employee motivation and bonding, securing new business, closing a deals or assessing a potential new suppliers or customers.

In short, the business travel market and effective corporate travel management remains integral to economic growth.

Can we expect further growth for business travel over the next 12-months?

A recent poll conducted by the GBTA states three in four travel managers expect their company will make more business trips in 2023 and is expected to increase significantly compared 2022.

However, as we’ve already seen, forecasting likely trends in the corporate travel market for the year ahead, while always an inexact science, is even more challenging at present due to global economic and political circumstances.

That said, there are a number of areas in which clear trends are emerging.

Sustainability

The demand for more sustainable ways to travel is expected to accelerate in 2023, meaning businesses will be even more keen to demonstrate their commitment to sustainability . Travel managers will need to prioritise environmentally-friendly options when arranging flights & accommodation.

Businesses will need to be more conscious about investing in better & greener choices when travelling for business. This could involve choosing a more sustainable mode of transport, selecting accommodation that has a sustainability policy in place or it could even be as simple as having digitalised travel documents to cut down on the amount of paper being used.

In addition, many companies will have the option to participate in a carbon offsetting scheme, in order to compensate for their own carbon emissions produced via business travel activity. This can be done through either existing suppliers or separate green projects.

All in all, the world of business travel will have an increasing focus on sustainability as the year progresses.

Are Travel budgets Making their way back to 2019 levels?

Despite the challenges of recent times, business travel bookings and spending continue to make their way back to pre-covid levels. According to the GBTA, travel buyers have estimated that their companies' domestic business travel bookings have returned to 68% of their 2019 spend levels, which is up from 63% in Q4 2022.

However, companies that do not have an extensive travel budget, will have to come up with solutions to cut down on spend when employee travel is absolutely necessary for the business. Many businesses may look to send their employees on longer haul trips, with multiple layovers to make their trip more efficient, while reducing the number of travel bookings needed.

Ideally, your travel manager should be looking to assist you in formulating a clear, effective travel policy which provides your people with all the information and guidelines they need on expected costs.

Changes to business travel policies

Many businesses have adopted a hybrid-working approach since the pandemic, which has forced them to think about what their employees can, and can't claim back as expenses.

Savings made by businesses from employees working at home will require policies to be updated or renewed to include a new employee allowance.

Travel policies which may have been appropriate pre-pandemic may no longer be fit for purpose and, as corporate travel remains a key economic driver, it will be important for the business community and their corporate travel management partners to ensure that policies are updated accordingly.

Technology will become even more important for business travel

With online booking such an essential element of so much corporate travel, there are also signs that self-booking is increasing in popularity, particularly for younger business travelers who may be more comfortable with its use during the booking process.

In addition, your people don't want to be thinking about collating multiple receipts needed for an expense report while travelling on business. They want to be focusing on the reason for the business trip.

Technology can play a huge part in streamlining the business travel process; whether it's a more efficient booking process, digital payment methods or managing your travel documents.

'Bleisure' travel: can employees mix business with leisure activities?

Along with a 44% increase in business travel airfares, which is expected to rise further in 2023, we can also expect to see a rise in bleisure travel with increasing numbers of business travellers using their time away from the office to accommodate leisure activities within their itineraries.

Remote working has been the driver of this. With employees able to work from virtually anywhere that has a good WiFi connection and charging points, travel can be extended by a few days or even weeks, depending on how far they have to travel.

Traveller safety

For the best travel managers, safety will remain one of the top priorities in corporate travel.

The pandemic has emphasised the importance of employee security when travelling for business and other recent external world events have only underlined this further.

Marine & Offshore Travel are the core of Clyde's business

Alongside Clyde’s wider corporate travel management activities, our core business is our specialist support for the marine and offshore industries.

We have a 30-year track record of helping to move crews safely around the globe for some of the world's largest ship owners. As part of the Northern Marine and the wider Stena Group, Clyde live and breathe the Marine sector.

Our performance over the pandemic is testament to our expertise in this area, with one of our customers quoting that the industry average was 25% behind in crew changes in 2020; however, they were only 8% behind because they had Clyde as the trusted travel management company.

We have an unrivalled understanding of the marine sector’s complexities and challenges. Our proprietary Consort technology, which helps businesses improve communication to speed up the booking process, makes us the ideal partner to get your people where they need to be safely, efficiently and cost-effectively.

With over 100 global marine airline contracts and wholly owned operations in the UK, US, Sweden, Norway, Denmark, Netherlands and an offshore service centre in India, we have the content, knowledge and infrastructure to support some of the largest ship owners and managers in the world.

We also work closely partner agencies across the globe to ensure we deliver the best marine and offshore fares, with the flexibility required for your company and crew.

Our specialist expertise enables us to safely mobilise thousands of seafarers across the globe each year from across Europe and other key territories including the Philippines, Russia, India and Ukraine.

Our expert teams have an average length of service of nine years, can deploy unique products and technology specifically tailored to mobilising crew and access airfare savings through our farewatch and unused tickets tracking, providing our customers with tangible cost and efficiency savings.

Want to know more about what to expect for business travel in 2023? Get in touch with our corporate travel experts today. 

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10 Future Business Travel Trends & Predictions for 2024 and Beyond

Corporate travel remains a crucial aspect of a business. Despite advancements in technology, business travel trends indicate that there’s no substitute for face-to-face interactions. Travel can also support business initiatives for networking, skills development, and recruitment. However, the presence of COVID-19 has thrown a wedge at some of those travel plans, which prompts the importance of risk assessments and possible changes in future travels.

In this business travel forecast, you can read all about the direction the industry is moving in. We’ve also included some business travel statistics so you can make data-driven decisions in your company’s business practices.

Business Travel Trends Table of Contents

• Business is almost always mixed with pleasure
• Unconventional accommodations are in
• Self-booking is becoming the norm
• More flexible corporate travel policies
• Technology continues to revolutionize corporate travel
• The rise of AI, virtual reality, and intelligent assistants
• Blockchain: the future of business travel
• Business travel as a perk
• Slower years for corporate travel and business tourism
• New travel markets are emerging

The business travel industry experienced a decline of 52% during the early months of the COVID-19 pandemic, but with the recent rollout of vaccines, business travel spending is expected to rise to $842 billion in 2021, which accounts for a 21% increase (Reuters, 2021). The majority of businesses have even reported that they are considering resuming their corporate travel plans for 2021, although there are no definite plans yet (GBTA, 2021).

Source: GBTA

One of the major changes to anticipate is the rise of a new type of corporate traveler. Members of Generation Z are taking over the workplace, and predictions point to this age bracket making up around 40% of the workforce by 2021 (Connecteam, 2020). At the end of 2024, business travel spending is expected to reach $1.4 trillion and make a full recovery from the pandemic in the succeeding year (Reuters, 2021). By this time, millennials and Gen Z-ers will be doing much of the traveling given their respective shares in the labor force.

This shift in the demographics of corporate travelers has influenced the global business travel forecast in the coming years. Many business travel trends center around technology and its abilities to enable self-service and make travel seamless.

1. Business is almost always mixed with pleasure

The rise of bleisure travel proves to be one of the most significant outcomes of the demographic shift in corporate travel, and this trend is expected to continue in the midst of COVID-19 vaccinations. With the workforce becoming younger, more employees are looking to do more than work during their trips away from the office.

Although 92% of organizations suspended business travel during the early months of the pandemic, pre-pandemic figures suggest that 90% of millennial business travelers added components of leisure to their affairs (National Geographic, 2020). This could very well occur within 2021 as COVID-19 vaccines are now available.

Bleisure travelers go on these trips once every two to three months. More than half of international business travelers plan to extend business trips to accommodate leisure activities at their destination.

Companies in the tourism industry can capitalize on this trend by focusing their marketing campaigns on local tourist attractions and events. If you’re more concerned of your employees not doing enough business, though, time tracking software can help ensure sufficient productivity.

Key takeaways:

• More employees are taking bleisure trips.
• Bleisure travelers go on trips at least every quarter.
• Business travelers are also willing to extend business trips for leisure activities.

2. Unconventional accommodations are in

Another business travel trend influenced by the new generation of corporate travelers is the growing popularity of unconventional accommodations. Business travelers have become more open to considering staying somewhere other than traditional chain hotels. More are opting to stay in apartments and other accommodations that have a more homey feel.

Smaller boutique hotels and home-like accommodations, like those offered by Airbnb, enjoy increased popularity among business travelers today. For instance, over 70% of millennial corporate travelers had stayed in a vacation rental during business trips (American Express, 2019).

These non-traditional accommodations provide opportunities for exploring the destination in new ways. More travelers also stay further away from the city center, as comfort and proximity to leisure activities are prioritized.

• More business travelers opt to stay in home-like accommodations.
• Small boutique hotels and home rentals have the edge over traditional chain hotels.
• Additionally, more corporate travelers prioritize comfort and proximity to leisure activities.

3. Self-booking is becoming the norm

More corporate travelers opt to book travel options and accommodations on their own. According to recent surveys, 68% of employees book business travel through tools not approved by the company instead of seeking the services of a travel agent (Expedia Group, 2021). After all, there are numerous self-booking options that business professionals can leverage. This trend towards self-booking may also be another offshoot of the generational shift in corporate travelers. After all, millennials prefer self-booking when they travel so that they can find flights and accommodations that meet their preferences.

In some cases, corporations push for self-enablement and provide tools that help employees resolve issues. When these self-service tools fail, though, corporate travelers will continue to rely on customer service from an agent. This is particularly true when emergencies arise, like in cases of canceled flights. Corporate travelers also tend to want to rely on a human for support in more complex issues like visas.

• Business travelers, especially millennials, prefer the self-booking process.
• However, business travelers will continue to rely on human support for complex issues and travel emergencies.

Most Popular Online Booking Software

Here are some of the best online booking software that you can choose from:

• YouCanBook.me is an online booking software that connects customer bookings right into your Google or Microsoft calendars. It also allows you to personalize your booking page and display your availability for multiple locations.
• Acuity Scheduling provides a user-friendly online booking platform to help your clients self-book their appointments. It lets you create branded and customized confirmations, reminders, and follow-ups to drive more client bookings.
• Bookeo is an industry-leading online booking software perfect for service providers, schools, and tour companies. It provides you with advanced marketing tools to help you maximize profit.
• SimplyBook.me lets you build your own personalized and mobile-optimized booking website. It allows you to integrate the system with your existing site or with your Facebook and Instagram pages.
• Checkfront easily handles customer bookings in a unified toolset. With its advanced rule system, it lets you enforce and set your own booking rules.

4. More flexible corporate travel policies

When was the last time you looked at your company’s corporate travel policy? There’s a good chance that some of these policies need tweaking. Recent business travel trends indicate that more corporate travelers are “going rogue (RateGain, 2019).” This means travelers are now more likely to go outside employer-approved channels when booking properties and transportation for their trips.

Corporate travelers need a booking process that provides better availability and allows them to choose from more property and rate options. Combined with emerging preferences for unconventional accommodations, the need for more varied booking options pushes corporate travel policies to become more flexible.

The good news is that companies that offer a plethora of travel options enjoy higher adoption rates for their corporate travel programs (TripActions, 2019). Allowing employees to make choices that align with their needs and preferences encourages a culture of transparency and reinforces trust between employers and employees.

Worried about reining in travel spending while empowering business travelers to make their own choices? Technology now allows companies to adopt a dynamic travel policy. A dynamic business travel policy adjusts according to available options at the time of booking. This way, business travelers will still be able to make their own choices while complying with company policies.

As far as flexibility is concerned, video meetings and teleconferencing have also become alternatives during the pandemic, with 31% of employees stating that remote setups are just as effective as business travel (Forbes, 2020).

Why did you book accommodations outside of approved channels?

Source: Expedia, 2018

• More corporate travelers are going rogue, i.e., not using employer-approved channels, during the booking process.
• Corporate travel policies are becoming more flexible.
• Dynamic travel policies also have a higher adoption rate.

5. Technology continues to revolutionize corporate travel

Technology plays a central role in the global business travel forecast. Mobile technology currently accounts for 39% of hotel bookings and 22% of airfare bookings (FCM Travel Solutions, 2019). These numbers will probably grow with the upcoming upgrade to 5G wireless internet. Also, once the COVID-19 travel restrictions ease up, this technological trend will likely continue.

International business travelers can expect to spend less time waiting in airport lines, thanks to facial recognition technology that speeds up immigration protocols and border control procedures. Other biometric technologies seeing increasing use at airports include fingerprint and retinal scanning.

Trip disruption technology (CWT, 2019) is also evolving to minimize the hassle caused by delayed flights and trains. Travel technology providers can now deliver real-time trip updates to travelers’ mobile devices. This way, business travelers can adjust their plans accordingly and minimize downtime.

Faster in-flight internet access is also in the works. Travel suppliers and mobile network operators are working together to bring high-speed internet into the cabin. With this technology, employees can stay productive even during long-haul flights .

Technology has also moved beyond airports and train stations to make business travel easier. Business travelers can now enjoy automated check-in and check-out processes. These technologies allow travelers to pick up their room key upon arriving at the hotel and head straight to their room. Centralized billing can save travelers from the hassle of having to compute expense costs separately.

• Upcoming upgrades to 5G wireless internet may result in more mobile bookings in the future.
• Facial recognition and biometric technologies will also reduce waiting time for international travelers.
• Trip disruption technology helps corporate travelers adjust to delays in the journey.

6. The rise of AI, virtual reality, and intelligent assistants

More advanced technologies like artificial intelligence (AI) and virtual reality are poised to bring more changes to the business travel industry. Travel suppliers can use these technologies to discover business travelers’ preferences and take advantage of upselling opportunities. Virtual reality is also predicted to enable personalization, allowing guests to adjust rooms based on their taste (FCM Travel Solutions, 2019).

The coming years also pose many possibilities for intelligent assistants like Siri, Cortana, and Google Now. These assistants are able to handle more complex tasks (Wishup, 2019), like provide updates to itineraries during disruptions and recommend services. All these technologies will greatly benefit business travelers looking to maximize their time during the journey.

Want to learn more about artificial intelligence? Here are some artificial intelligence statistics you may find interesting.

• Artificial intelligence and virtual reality can be used to discover travelers’ preferences.
• Siri and Cortana will soon be able to provide itinerary updates.

7. Blockchain: the future of business travel

Blockchain is also expected to improve security for corporate travelers by 2021. Blockchain’s built-in security protocols make it the perfect technology for making travel as convenient and seamless as possible (Revfine, 2020).

The technology makes data storage and access easier. The constant availability of information is crucial since the travel industry relies on the information exchange between companies. For instance, travel agents pass customer information to hotels and airlines.

Blockchain makes it possible to collect every bit of information involved in the travel process (Amadeus, 2019) – from traveler preferences to flight prices and hotel rates – into a file that’s duplicated across multiple computers. And since the technology decentralizes data and arranges it into permanent blocks, blockchain offers more security. Travel information is always available and safe from user errors or cybersecurity attacks.

Businesses in the tourism and hospitality industry can also take advantage of blockchain technology for luggage tracking, identification services, and customer loyalty schemes.

Outside the realm of travel, blockchain can even be leveraged for other complex tasks like COVID-19 vaccine distribution (Mobi Health News, 2020). Technology this flexible will probably have niftier applications for business travel in the near future.

Cryptocurrencies such as Bitcoin may also soon be accepted as payments by travel companies. If you’d like to learn more about cryptocurrencies, you can check out our guide and FAQs on Bitcoin .

• Blockchain can greatly improve the security of travel information
• Blockchain can also ensure that every bit of travel information is always accessible.
• Likewise, this technology can ease luggage tracking and support customer loyalty plans.

8. Business travel is a perk

Another important aspect of the business travel forecast is the fact that most employees now see corporate travel as a perk (TripActions, 2019). According to surveys, international business travelers consider travel as valuable to professional and personal growth.

Making up the largest segment of the workforce, millennials are also more willing to travel, as they consider it an enriching experience. Similarly, employees who travel often feel more empowered and engaged. Travel can even help improve confidence and interpersonal relationship skills.

More companies are acknowledging these effects and seeing the link between business travel. A robust, dynamic corporate travel program can be used as a tool to encourage employee engagement , improve employee retention, and drive organizational growth.

• Most employees consider corporate travel a perk.
• Millennials consider business travel an enriching experience.
• Frequent business travelers also feel more empowered and engaged.

9. Slower years for corporate travel and business tourism

Business travel growth can finally begin after a serious downturn in 2020 due to the pandemic (Reuters, 2021). And the industry is even expected to make a full recovery. However, certain practices in the age of COVID-19, such as video conferencing and other remote alternatives, will likely stick since 31% of organizations find them just as effective as actual trips (Forbes, 2020) with much lower costs.

In fact, 43% of business travelers already expect that they will travel less post-pandemic (Forbes, 2020). Besides financial reasons, the pandemic has ravaged economies and not all countries have shown an adequate response to the continuing spread of the coronavirus. Furthermore, the rollout of vaccines is concentrated in developed nations (BMJ, 2020), thus development projects in developing nations would likely be canceled or at least met with stiff travel restrictions.

As such, 61% of employees would rather leverage video conferencing platforms than physically venture out to other lands (Forbes, 2020).

• Global business travel spending is growing, but not as much as during previous years.
• Political tensions and trade issues have also contributed to this slower growth.
• Improvements in political issues will support weakening travel prices.

10. New travel markets are emerging

New countries are taking bigger shares of the market in business travel spending. More corporate travelers are flying to India and Indonesia, with these countries showing 11.3% and 8.7% in market growth, respectively. Surpassing South Korea in business travel spending in 2017, India is expected to break into the top 5 business travel markets by 2022 (GBTA, 2018). A report suggests that Asia has become the world’s largest business travel market (Hospitalitynet, 2019), even though the United States outpaces everyone in spending by a wide margin (WTTC, 2021).

Sweden and Norway, with respective market growth rates of 6.8%  and 6.6 %, are quickly becoming popular business travel destinations as well (GBTA, 2018). China, however, will continue to dominate the business travel market, with a projected annual business travel spend of $129 billion by 2022.

Source: WTTC 2021

• India and Indonesia are becoming popular business travel destinations.
• Moreover, India will most likely be in the top 5 business travel markets by 2022
• Despite new markets, China will continue to be the top business travel market in the next couple of years.

Take advantage of these business travel trends

Travel remains an important business aspect for many companies today. If your employees are frequent travelers, it will be helpful to stay ahead of these business travel trends. This way, you can prepare for these changes and adjust your corporate travel policy accordingly, especially with COVID-19 still looming.

Information in these trends is also useful to travel management companies and businesses in the hospitality and tourism industry. Hotel owners or rental car companies can use these travel trends to gain insights into their customer base. These trends also present an excellent opportunity to adopt new business practices.

Many of these travel trends center around technology. It definitely won’t hurt to look into new software and applications that will give you that technological edge.

Want to get cracking on modifying your current business processes? Check out our article on the benefits of using business process management software .

References:

• Amadeus (2019). The Future of Business Travel . Retrieved from Amadeus
• American Express (2019). Trends on Business Travel’s Biggest Generation: Millennials . Retrieved from American Express
• BMJ (2020). Covid-19: Many poor countries will see almost no vaccine next year, aid groups warn . Retrieved from BMJ
• Expedia Group (2021). Business Travel Trends: How TMCs are keeping up with the corporate traveler . Retrieved from Expedia Group
• FCM Travel Solutions (2019). Business Travel 2020: The Trends & Tech that will Shape the Future of our Industry . Retrieved from FCM Travel Solutions
• GBTA (2018). GBTA Forecasts Seven Percent Growth in Global Business Travel Spend, Potentially Signifying End to Era of Uncertainty . Retrieved from GBTA
• Mobi Health News (2020). Blockchain could be the key to vaccine distribution, says IBM . Retrieved from Mobi Health News
• Pundora, D. (2019). 30 Benefits of Hiring a Virtual Travel Assistant . Retrieved from Wishup
• RateGain (2019). Delivering Duty of Care in the Age of Corporate Rogue Travel . Retrieved from RateGain
• Regan, R. (2020). Everything You Need To Know About Generation Z In The Workplace in 2021 . Retrieved from Connecteam
• Reuters (2021). Global business travel to grow 21% in 2021, trade group forecasts . Retrieved from Reuters
• Revfine (2020). Blockchain Technology within the Travel Industry . Retrieved from Revfine
• Statista (2021). Business tourism spending of G20 countries in 2019 . Retrieved from Statista
• TripActions (2019). 7 Business Travel Trends to Watch in 2020 . Retrieved from TripActions
• Wallin, B. (2020). How the death of business travel will change your next vacation . Retrieved from National Geographic
• Wyman, O. (2020). How Videoconferencing And Covid-19 May Permanently Shrink The Business Travel Market . Retrieved from Forbes

By Jenny Chang

Jenny Chang is a senior writer specializing in SaaS and B2B software solutions. Her decision to focus on these two industries was spurred by their explosive growth in the last decade, much of it she attributes to the emergence of disruptive technologies and the quick adoption by businesses that were quick to recognize their values to their organizations. She has covered all the major developments in SaaS and B2B software solutions, from the introduction of massive ERPs to small business platforms to help startups on their way to success.

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This summer’s travel trends: Shorter, cheaper trips and more driving — unless you’re rich

If you sat out last summer’s overcrowded, overpriced, booked-solid travel season in hope of cheaper and easier getaways this year, you may be out of luck.

Sixty-three percent of U.S. adults plan to travel this summer, up from 61% this time last year, according to a recent survey by Bankrate, a consumer-finance data provider. Airlines are bracing for high demand, and aviation authorities are warning of another season of flight disruptions .

The expectations come as inflation eased to 4.9% in April after having peaked at 9.1% last June and as the Biden administration’s ending of the pandemic emergency officially concludes the era of Covid-related travel restrictions, which have largely evaporated anyhow.

Clients are just willing to pay whatever it costs to do what they have been waiting to do for three years.

— Sandy Staples, owner of Artistico Travel

This summer, wealthier people increasingly plan to shell out for trips while lower earners pull back, industry analysts and travel experts say.

“Clients are just willing to pay whatever it costs to do what they have been waiting to do for three years,” said Sandy Staples, owner of the luxury travel agency Artistico Travel in Granite Bay, California.

“We have clients doing a massive cruise,” she said, “and the round-trip business class airfare to Iceland was over $11,000 per person. They paid it.”

Among households earning over $100,000 annually, 81% are likely to take summer vacations, Bankrate found, up from 75% last year. At the other end of the spectrum, just 54% of households making under $50,000 said the same, down from 56% a year ago.

Many travel costs are still rising faster than headline inflation, said Sally French, a travel expert at the personal finance company NerdWallet. “Because inflation is already high as is, this summer is set to be rough for people seeking to travel affordably,” she said.

But rather than shelve summer getaway plans entirely, 80% of travelers told Bankrate that they’re looking for ways to economize.

While airline ticket prices have fallen by just 0.9% from a year ago, gasoline prices have plunged by more than 12%, inflation figures show. The airfare tracker Hopper predicts domestic round-trip costs to climb as high as $328 by June — $72 shy of last summer’s record peak but still 4% higher than pre-pandemic. So travelers like Terri Johnson, of Ocala, Florida, are choosing road trips over flying.

“I’m going to a wedding in Fayetteville, North Carolina, and then to Raleigh to visit cousins I’ve never met” after having found them on an ancestry platform, Johnson said.

“Flying costs more with multiple destinations, so I’m driving,” she said, adding that she’s limiting her hotel stays and taking her own vehicle to avoid high rental car prices.

She’ll have plenty of company on the roads.

To save money, 26% of vacationers plan to drive rather than fly to their destinations this summer, up from 16% last year , according to Bankrate. The national average price for a gallon of regular gas is $3.54 , down from $4.42 a year ago, AAA data shows, and rental car prices fell by more than 11% last month from the year before.

Bankrate also found that 29% of summer travelers will be choosing cheaper accommodations or destinations, a bigger share than 22% last year. And 26% — up from 19% — will be traveling fewer days.

“We’re taking every opportunity to get away from home but making adjustments for inflation,” said Michael Huntsberger, of McMinnville, Oregon. For this summer’s getaways, his family trimmed two days off a planned trip to California wine country, and they decided to vacation in eastern Canada because it was more affordable than New England.

“We couldn’t find a hotel for less than $450 in Portland, Maine, and the cost of traveling from there to Montreal was prohibitive,” he said, “so Ottawa, here we come!”

More travelers are also turning to loyalty points and rewards programs to help cut costs, with 34% doing so this year , up from 28% last July, according to research Morning Consult released in March.

Cashing in travel points rather than stashing them away not only frees up money for other expenses, but it can also be a good inflation-fighting tactic, said French of NerdWallet.

“Just like inflation, points inflation is real,” she said. “Airlines and hotels regularly raise the number of points or miles [required] to book travel,” which means rewards can lose value if you sit on them too long.

An overwhelming 85% of travelers told NerdWallet that they plan to put the costs of their summer trips on credit cards, and nearly three-quarters of them said they’ll pay off those charges as soon as a billing statement arrives to avoid interest fees.

But, thanks to rising rates, the remaining 26% who said they expect to carry travel-related balances could end up paying a lot more for their trips than they’d planned.

The Federal Reserve’s recent quarter-point interest-rate hike “won’t move the needle much” on credit card rates, said Ted Rossman, a senior industry analyst for Bankrate, but after 10 consecutive increases, “the cumulative effect is significant,” he said. 

I still make travel a priority and don’t mind using a little more of my savings to maintain the level of experiences.

— Marcy Schackne, Hollywood, Florida

“The typical credit card holder should soon see a rate that’s 5 percentage points higher than it was in early 2022,” Rossman said. “That makes a big difference if you’re carrying debt from month to month, especially if you’re only making minimum payments.”

While 55% of American travelers told the industry research firm Destinations Analysts in March that travel would be a high priority in their spending over the next three months, that was 6 percentage points lower than those who said the same last spring. The group also found a nearly 8-point drop in travelers saying it’s a good time to take a trip, to just 30%.

Some travelers are taking the expenses in stride.

“It’s more of a mental adjustment that everything will cost more,” said Marcy Schackne, of Hollywood, Florida. “I still make travel a priority and don’t mind using a little more of my savings to maintain the level of experiences.”

While Morning Consult found wealthier consumers were more likely than others to ditch their travel plans, Staples said she’s seeing lots of demand: “Summer travel requests have been coming in to the point that my team and I have had to make the decision to not take any additional requests.”

“We are definitely seeing the continuation of the ‘revenge travel’ post-pandemic,” she said.

Harriet Baskas is an NBC News contributor who writes about travel and the arts.

Cities & Trends Europe 2023 edition

Curious about the buzz-worthy cities that captured the attention of business travelers across Europe in 2023? Or perhaps you’re intrigued by the most visited destinations of European business travelers beyond the continent? Dive into BCD’s newest release: Cities & Trends Europe 2023 Edition . We’ve sifted through the data from our BCD travelers’ flights and road trips to bring you an accessible ranking report, including the top European and intercontinental cities and countries, as well as the most booked flight types and cabin classes. Discover the pulse of European business travel with our insightful analysis.

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• Strategize effectively and plan accordingly
• Optimize business travel costs
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Technologies expected to have the biggest impact on travel agencies worldwide 2023

A 2023 global survey examined which technologies were expected to have the biggest impact on leisure travel agencies over the next 12 months. Data analytics was predicted to have the biggest impact on such companies in the coming year, with 43 percent of respondents stating that this was the case.

Technologies expected to make the biggest impact for leisure travel agencies worldwide in the next 12 months as of 4th quarter 2023

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senior leaders of leisure travel agencies that are involved in technology investment; figures refer to travel agencies that deal directly with the public and exclude online travel agencies (OTAs) and business travel agencies (BTAs)

The countries involved in the study included Brazil, China, France, Germany, India, Mexico, South Korea, the United Arab Emirates, the United Kingdom, and the United States.

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MENA Region Leads Global Growth in Luxury Travel, Reveals Mastercard Affluent Travel Report

MENA Region Leads Global Growth in Luxury Travel, Reveals Mastercard Affluent Travel Report   

• Report highlights the role of high-net-worth travelers in boosting the travel and hospitality industry
• Over a third (38%) of luxury seekers are willing to pay 30-50% more for sustainable travel features 1
• Affluent travelers in the MENA region are power users of loyalty and membership card programs
• GCC tourists are some of the highest spenders, whether vacationing within the region or further afield

The Middle East and North Africa (MENA) region has emerged as one of the main regions driving growth in affluent travel, recording high spends, while also displaying an appetite for sustainable eco-luxury and meaningful cultural experiences. Mastercard’s latest report, ‘Affluent Travel: A Middle East Perspective’, released during the Arabian Travel Market 2024, unpacks some of the key trends.

The appetite for new experiences in unexplored destinations, micro-trips and ‘bleisure’ will likely drive the growth of the global luxury travel market, which is expected to grow by 7.9% (CAGR) between 2024 and 2030, according to Grand View Research 2 . While the world awaits the emergence of the first trillionaires, high-net-worth travelers contribute approximately 36% of the global spend on travel as stated in a Jones Lang LaSalle study 3 .

“At Mastercard, we are committed to connecting people to their passion for travel. This report gives a great snapshot of how high-net-worth individuals choose to travel, and it’s wonderful to see sustainability, cultural immersion and purpose as key considerations, along with quality accommodation, seamless technology and loyalty benefits. We will continue to harness the power of partnerships with leading industry players to come up with innovative solutions that unlock access to a whole new world of unparalleled travel experiences,” said Amnah Ajmal, Executive Vice President, Market Development EEMEA, Mastercard.

As per YouGov research, over a third (36%) of luxury travelers say they want to experience different cultures 4 . The combination of business and leisure, or ‘bleisure’, is also resulting in more remote-work trips as digital nomads change the face of travel. Affluent travelers are almost twice as likely as the global average to have taken a vacation as an extension to a business trip 4 . Furthermore, Marriott Bonvoy research also showed that solo travel is being embraced, with 70% of respondents in the UAE and 69% in Saudi Arabia saying they’ve travelled solo 5 .

Seeking out sustainable credentials and authentic eco-luxury

Affluent consumers are keen adopters of the conscious travel trend and place a premium on the authenticity of eco-luxury experiences. These include associating with travel brands that support local communities. Globally, one in 10 consumers have stayed in luxury eco-friendly accommodation in the last three years, compared to five of 10 among 18–34-year-old affluents. According to Euromonitor, a sizeable 38% of luxury seekers are willing to pay between 30% and 50% more for sustainable travel features such as energy-efficient services. A quarter would pay even higher to find less carbon-intensive transport 1 .

Meaningful experiences over material things

The YouGov report notes that this discerning segment places more emphasis on experiences than on physical goods. More than half of affluent travelers, compared to 43% of the global total, prioritize meaningful travel experiences over shopping and souvenirs 4 . Close to a quarter say that they are willing to pay more for a remote destination experience, customized tours to connect with local culture, and eco-friendly resorts 4 .

Personalization, privacy and pampering 

Luxury travelers are prioritizing unique personalized experiences over location. However, they also want their money’s worth in the form of exemplary customer service and pampering. Quality luxury accommodation is a high priority, with 27% saying they would pay more for villas and chalets in secluded and private locations and 21% happy to splurge on luxury stays on a private island 4 . Younger affluent travelers are more likely to pay more for Michelin-starred or unique gourmet experiences. According to Marriott Bonvoy research, light, air, temperature, and sound in future hospitality spaces guided through digital concierges will recognize and respond to guests in real-time, based on mood, schedules, and health requirements.

High-spending loyalty supporters

Based on average spend per card by origin market, GCC travelers are among the highest spenders. According to a 2023 Mastercard Economics Institute report, Kuwaiti tourists, for instance, spend on average of $3,390 per card in Paris, five times as much as their American counterparts. High-net-worth individuals are also power users of loyalty schemes and membership cards – 34% versus the overall average of 24% 6 . Exclusive airport lounges, as well as priority check-in and boarding, are among the most used perks of loyalty membership, highlights the Euromonitor report 1 .

As wealth migrates to younger generations, Millennials (aged 30 to 44 years) now comprise the highest percentage of luxury seekers, followed by Gen Z (aged 15 to 29) 1 . Within the GCC, however, Gen X (aged 43 to 58 years) is expected to make the highest contribution to travel growth, according to Arabian Travel Market 7 . While much of the world is still catching up to pre-pandemic travel levels, MENA is the only region to show airport arrivals at 22% above 2019 numbers. According to the World Tourism Barometer, specific destinations such as Qatar (+90%) and Saudi Arabia (+56%) have contributed to this surge 8 .

To read more about the report, please visit here . 

• Bremner, Caroline; Roberts, Fflur. Meet the New Luxury Travel Seeker: Discerning, Digitally Savvy and Diverse . Euromonitor. February 14, 2024.
• Grand View Research. Luxury Travel Market Size, Share, and Trends Analysis Report .
• Demuth, Zach et al. The evolution of global luxury hospitality . Jones Lang LaSalle (JLL). May 15, 2023.
• Stewart, Eva. The future of affluent travel will balance luxury, well-being, and exclusivity . YouGov. August 14, 2023.
• Marriott Bonvoy. Marriott Bonvoy 2024 Future Travel Trends . January 2024.
• Mastercard Economics Institute. Tourism fuels economic diversification in the Gulf states .
• Press Statement. Gen X driving GCC outbound travel according to research, says ATM . Arabian Travel Market. February 6, 2024.
• UNWTO World Tourism Barometer. International Tourism to Reach Pre-Pandemic Levels in 2024 . January 19, 2024.
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