INSIGHTS

Top 6 Predictions of Business Travel for 2024

The pulse of corporate travel is quickening, propelled by a shift in how we work. Let’s face it - remote work is well and truly a fixture now, promising enhanced well-being and work-life equilibrium. However, organisations are balancing this new way of working while facing dynamic financial and environmental challenges. What will the outcome be for 2024? We unravel the Top 6 Predictions of Business Travel for 2024 by blending insights from our experts with the experts at Travelport.

Corporate travel and its grand return - with a significant change

Predictions are optimistic for the trajectory of corporate travel for 2024, with a noteworthy twist emerging in 2022 - defying speculations, global business travel expenditure soared by 47%, surpassing a staggering one trillion US dollars, as reported by GBTA (Global Business Travel Association).

This upward surge, projects a full recovery to pre-pandemic spending levels by the close of 2024—eclipsing the prior mid-2026 estimate. The change is anchored in necessity; for many, travel is still indispensable. Budgets, resilient even in economic uncertainties, attest to the enduring significance of face-to-face interactions. “87% of employees think business travel is important to company growth: Source: Uber and GBTA report”

1. A new type of business travel: Super commuting

The dynamics of business travel have evolved into a realm where 'super commuting' takes centre stage—a consequence of the pandemic-induced dispersion of talent and the rise of remote work. Employers, now liberated to recruit talent from across the globe, face a fresh request from these dispersed employees: occasional in-person office visits. What was once a local commute has transformed into a unique category of business travel, where flights replace car rides for a return to the physical office – both national and international.

Deloitte's survey unveils the financial dynamics behind this phenomenon, with relocated employees embarking on more trips to company headquarters—70% of which are company-funded. This burgeoning trend challenges conventional travel policies, demanding a nuanced approach to accommodate the infrequent, extended, and purposefully designed visits aimed at enhancing connectivity, morale, and retention.

Yet, navigating the uncharted waters of 'super commuting' encounters obstacles, including outdated travel policies crafted in a pre-pandemic era. FCM understand the diverse working arrangements created by the new normal and can help forwardthinking travel managers seize the opportunity to recalibrate policies, as the modernisation of corporate travel policies becomes the compass guiding businesses through this new form of business travel.

2. Employee well-being

Remote work's newfound allure has heightened expectations for those hitting the road.

35% of business travellers say their biggest priority is having options that support well-being, productivity, and aid recovery. Source: Travelport Research 2022

Beyond the allure of corporate trips lies a demand for freedom and flexibility mirroring daily life, a sentiment echoed by 87% of workers who consider well-being as crucial, potentially influencing their loyalty to a company (Gympass).

In 2024, employees expect flexibility and well-being considerations, rivalling the significance of monetary compensation (GBTA 2023). As the battle for talent intensifies, companies are realising that neglecting well-being leads to costly turnover.

At FCM, we understand that successful travel programs harmonise cost-effectiveness with traveller satisfaction. We empower corporate travel managers with transparent information and policy flexibility, acknowledging the individualised nature of well-being.

After all, in the modern era, ensuring employee satisfaction extends beyond conventional perks, delving into every aspect of work life.

3. Empowering business travellers: The rise of leisure-like autonomy

Corporate travel policies, once solely about cost containment, are undergoing a change. Beyond budgetary confines, new success metrics emerge—well-being, retention, and productivity.

88% of business travellers want full transparency into what they are buying. Source: Travelport Research 2022

Modern expectations demand flexibility and control, aligning with consumer-driven closeness to trip planning. While the support of Travel Management Companies (TMCs) is still essential, the call is for heightened transparency and adaptability in corporate travel policies. Enter a pivotal opportunity: envisioning policies not as rigid rules but agile frameworks. FCM can help create personalised itineraries, accommodating preferences without inflating costs, fostering satisfaction without compromising the bottom line.

4. Incentivising work travel through leisure-appeal

Beyond corporate protocols lies a shift in the way we approach business travel. Today, the allure of leisure mixed with professional endeavours, is challenging traditional notions. While the move towards fewer but longer trips aligns with environmental goals, a perceptible gap exists between the priorities perceived by businesses and travel managers versus the authentic desires of business travellers

Research underscores a change in thinking: 47% of business travellers already incorporate leisure time, and 61% aspire for policies allowing personal moments and the company of loved ones at their expense.

The evolving landscape proves that missed travel opportunities during the pandemic have fostered a renewed enthusiasm for exploration. Blended travel experiences, where business trips seamlessly integrate leisure, are becoming a cornerstone of engagement. The focus is not on crafting vacations for employees but providing the flexibility to savour a nuanced travel experience.

Recommendations, flexibility with expenses, and personalised travel suggestions, demanded by 87% of business travellers, become the guiding principles. In this redefined journey, it's not just about destinations; it's about cultivating a workplace ethos that values well-being, personal time, and individual preferences.

5. Sustainability and business travel

In the landscape of corporate travel, sustainability surpasses the simplicity of a green leaf icon—it's an imperative echoing from boardrooms to consumer consciousness, with companies facing escalating pressure to curtail their carbon footprint.

This environmental urgency extends to business travellers, especially the socially conscious younger demographic, making up 63% of companies investing more in sustainable travel. Aligning choices with sustainability requires more than symbolic gestures; it demands concrete insights.

Corporate travel managers wield the power to effect real change by scrutinising not just carbon offsetting but the environmental impact of each flight. Focusing on sustainability goes beyond virtue signalling;

“Nearly a quarter of business travellers would decline a trip based on sustainability concerns. Concur Study

6. Smooth sailing: AI and Automation in business travel

Navigating the uncertainties of modern travel demands a technological evolution. As 69% of frequent business travellers acknowledge disruptions as the new norm, support from your TMC is crucial.

Leveraging AI and the latest technology, we empower travellers with real-time updates, support, and rapid adjustments when plans shift.

The advent of AI and automation stands as a beacon, offering proactive assistance to weary travellers. While 77% have embraced chatbots, the human touch remains paramount. FCM offers our clients a symbiotic blend of technology and personal assistance which ensures travellers feel in control amid the unpredictable

While 77% of respondents have used chatbots, roughly the same amount want the option of live chatting with a human. Source 2023, Travelport Research

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