Is business travel returning? No, and it isn’t going to, say studies

The times of high flights and enormous business travel expenses could also be over for good.

According to a latest report from research firm Morning Consult: Business travel won’t ever return to normal.

Limited corporate budgets and latest ways of working virtually have modified business travel permanently a report titled “Business, but not business as usual”.

Demographics are also changing, the report says, with business travelers now younger and more prone to fly economy class, and about half earning lower than $50,000 a 12 months.

“Old stereotypes about travelers spending quite a bit on top notch tickets not hold true,” the report said.

According to the report, a distinct business travel model is slowly but surely gaining ground, crystallizing a “latest normal” for the industry.

According to Morning Consult, while recreational travel all over the world continues to grow, business travel within the United States stagnated last 12 months.

A survey of roughly 4,400 Americans found that business travel — each domestic and international — grew just 1% in 2022.

Compared to pre-pandemic levels, the report finds that fewer people travel for business, and those that travel accomplish that less regularly.

Nearly a 3rd of respondents said their firms had modified their business travel policies, mostly by reducing the frequency of business trips (60%) or sending fewer employees on trips (56%). More than half (54%) said firms are also keeping a tighter eye on travel spending.

According to Morning Consult, the trips that top the chopping list include corporate retreats, trade shows, and incentive travel.

Respondents to the survey said they believed these changes were made to cut back costs, improve worker health and well-being, and since virtual meetings have eliminated the necessity for some face-to-face meetings.

Senior business leaders within the survey also cited sustainability, which the report said is “an element unrelated to temporary events or conditions.”

The report is predicated on a survey of 334 managers and travel managers who oversee travel budgets. It finds that one in three U.S. firms — and about 40% of European firms — have identified the necessity to cut back worker travel spending by greater than 20% to satisfy climate goals by 2030.

The report, titled ‘Navigating towards a latest normal’, says climate concerns are prone to impact corporate travel profits in the approaching years.

Another report published last 12 months by Morning Consult, indicates that business travel is declining more in some countries than in others.

Morning Consult asked business travelers who were traveling for business at the least thrice a 12 months before the pandemic once they expected their next business trip:

“At least half of French, British and German business travelers who traveled extensively before the pandemic say they may never accomplish that again,” said Lindsey Roeschke, travel and hospitality analyst at Morning Consult. “But other areas are more promising, particularly India, China and Brazil.”

When it involves how employees view their current travel schedules, most say they feel comfortable with it, at the least within the US, in response to a February Morning Consult report.

Overall, 64% of American adults said they travel “an adequate amount” for work, while 29% said they want they might do more and seven% said less.

The variety of trips might not be growing significantly, but firms’ spending on business trips is growing rapidly, in response to a Deloitte report.

It said business travel spending within the US and Europe nearly doubled last 12 months – and is on the right track to achieve pre-pandemic levels in late 2024 or early 2025.

While this may occasionally seem to be a full recovery, the report notes that companies are having to spend more due to inflation and better travel costs.

“Higher airfare and room prices are the largest contributor to rising costs and have grow to be the number one factor holding back the variety of trips made,” it said.

Flexible bookings and employees’ desire for luxury business travel are also behind higher costs, the report finds.

According to Deloitte, firms say they get monetary savings by selecting cheaper accommodation (59%), booking cheaper flights (56%) and reducing the frequency of travel (45%).

Nearly 70% said they were strategically considering the necessity to travel, balancing aspects corresponding to cost and carbon emissions with worker retention and revenue generation, the report said.

According to reports, nevertheless, there are some brilliant spots for those rooting for a robust return to business travel.

According to Deloitte, spending on international business travel is anticipated to extend in 2023 – in Europe, mainly for working with clients, and within the US for networking with colleagues from all over the world at conferences.

According to Morning Consult, nearly two-thirds of business travelers said they expect to attend a conference or seminar this 12 months as well.

According to the report, “Bleisure” travel, which mixes business and leisure travel, can also be on the rise, due to the flexible work arrangements that began through the pandemic.

The report notes that employees often pay more for combined trips, although many imagine the “investment is price it” as they’ll travel more often and for longer periods.