Other biometric technologies seeing increasing use at airports include fingerprint and retinal scanning. Companies are starting to bring employees back to offices. A robust, dynamic corporate travel program can be used as a tool to encourage employee engagement, improve employee retention, and drive organizational growth. In light of new developments, to what extent will videoconferencing replace business trips? Intermediaries may be able to create a new revenue stream from these data. The Global Business Travel Forecast offers global and regional pricing along with trends and tips to help you build a travel program fit for the future. Global business travel spending fell 54% to $661 billion in 2020 from $1.4 trillion 2019. Upcoming upgrades to 5G wireless internet may result in more mobile bookings in the future. 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. 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. This is according to the GBTAs annual business travel index, the BTI Outlook, which looks at both business travel spend as well as insights and traveller sentiment across 44 industries from 73 countries around the world. Suppliers could also consider offering radically transparent flexibility policies and allow customers a greater range of options with different associated fees for cancellations and changes. A global pandemic spells big macroeconomic implications, varied recovery timing around the world, and new considerations when it comes to program spend. Biden says U.S. killed top al-Qaida leader in drone strike. We'll email you when new articles are published on this topic. Who can deny the buzz of meeting a client or colleague in person again; of landing somewhere new and seeing a city sprawled beneath the airplane window? 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). U.S. to ship another $550M security package to Ukraine. Business travel spending rose more slowly than expected this year, according to a new industry report. still hold, weve sharpened our understanding of how business leaders could be thinking about the postpandemic role of corporate travel. New countries are taking bigger shares of the market in business travel spending. Key players in the ecosystemsuppliers (including airlines, hotels, car-rental and rideshare companies), corporate-travel planners, travel intermediaries such as online travel agencies (OTAs), global-distribution-system (GDS) providers, and travelers themselvesneed to master four critical skills: leveraging real-time data, planning with agility, aiming for comfort and safety, and communicating with clarity. Millennials consider business travel an enriching experience. More companies are acknowledging these effects and seeing the link between business travel. A significant takeout from the GBTA report is that about half (52%) of c-suite respondents recognise this and expect their companys business travel spend to reach 2019 levels at some point in 2022. Travel intermediaries such as these are uniquely situated to provide aggregate data for each industry. The good news is that companies that offer a plethora of travel options enjoy higher adoption rates for their corporate travel programs (TripActions, 2019). Masks have become ubiquitous, and border restrictions, boarding procedures, and hygiene requirements seem to be ever changing. Stay on topic. The coming years also pose many possibilities for intelligent assistants like Siri, Cortana, and Google Now. More employees are taking bleisure trips. For most, this means fewer trips that accomplish more. Hotels may let guests decide on the frequency and timing of housekeeping. In 2019, it spent a larger portion of its travel budget on internal conventions, sales-leader celebrations, and cross-state executive meetings and collaborations. Allowing employees to make choices that align with their needs and preferences encourages a culture of transparency and reinforces trust between employers and employees. Watch Unpredictability will continue to be a fact of life, but one thing is certain: if everyone plays their part well (and smartly, by leveraging the technologies and processes at our disposal), the resumption of corporate travel is possible. In the United States, a comparison of a multinational conglomerates internal and external travel spend and that of a private health insurer provides an example of how the recovery trajectory may differ from business to business (Exhibit 3). Also, once the COVID-19 travel restrictions ease up, this technological trend will likely continue. Even though theres much debatesurrounding the timing of herd immunity in the United States, its indisputable that vaccination rates are on the rise across the country. Some corporate travelers will find they have to adapt quickly to the many changes in business travel, while others will have the luxury of easing themselves in over a longer period. Taken together, the trajectories of the four travel categories confirm our earlier projection of an uneven recovery for corporate travel. This article was edited by Jason Li, a senior editor in the Shanghai office. Weve identified four different business-travel profiles, each sitting at a different point on the travel-resilience spectrum. These signals and others suggest that many organizations are reevaluating working and organizational arrangements, including when, why, and how their employees should hit the road. Aug. 2 (UPI) -- President Joe Biden, who is recovering from a rebound bout of COVID-19, will virtually join an event in Michigan to mark the signing of Gov. Bleisure travelers go on trips at least every quarter. China and the U.S. are expected to lead business travel spending this year with growth of about 30% apiece, according to the report. Business travel growth can finally begin after a serious downturn in 2020 due to the pandemic (Reuters, 2021). Breaking down corporate trips into different segments can help travel planners and suppliers plan for the return of corporate travel. Three indicators were used to define each archetype and determine its position on the spectrum: sector, travel purpose, and whether the trip was domestic or international. 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). First, the factors that affect whether corporate travel should increase: for example, local and regional infection levels, customer demand, and competitive actions. Trip disruption technology helps corporate travelers adjust to delays in the journey. 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). People wellbeing needs to be a top priority at any company, and it must move higher up the agenda. Making up the largest segment of the workforce, millennials are also more willing to travel, as they consider it an enriching experience. Business travelers can now enjoy automated check-in and check-out processes. China, however, will continue to dominate the business travel market, with a projected annual business travel spend of $129 billion by 2022. These trends also present an excellent opportunity to adopt new business practices. Cryptocurrencies such as Bitcoin may also soon be accepted as payments by travel companies. When demand picks up, many firms may find that they dont have the time to pause and think through their strategies. When changes in operations are made, companies can take special care to ensure the availability of amenities. Real-time data also help suppliers of corporate travel, such as air carriers and hotels, become more agile. Never miss an insight. 2021 ended with the Omicron-induced travel bans reducing international travel to South Africa just when the country was hoping for a bumper holiday season to boost the ailing tourism sector. Nov. 17 (UPI) -- Business travel spending will surge next year to over $1 trillion, but it will take another two years for the industry to fully recover from the COVID-19 pandemic, an industry forecast released Wednesday said. It pays to have a detailed plan and strategy for different recovery scenarios in place. Another business travel trend influenced by the new generation of corporate travelers is the growing popularity of unconventional accommodations. Covid variants, uneven vaccination rates and case surges slowed growth. While the pandemic ground travel almost to a complete halt, business travel remains an important activity among the worlds workforce. Travel manager will need their suppliers to provide the appropriate information at point of booking to enable travellers to make the most sustainable travel choices. Besides financial reasons, the pandemic has ravaged economies and not all countries have shown an adequate response to the continuing spread of the coronavirus. These technologies allow travelers to pick up their room key upon arriving at the hotel and head straight to their room. In addition, its worth noting that even within these segments, business-travel recovery will vary depending on the purpose and distance of the business trips (Exhibit 2). 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). 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). Travel suppliers can use these technologies to discover business travelers preferences and take advantage of upselling opportunities. More corporate travelers are going rogue, i.e., not using employer-approved channels, during the booking process. Despite advancements in technology, business travel trends indicate that theres no substitute for face-to-face interactions. Global business travel spending is growing, but not as much as during previous years. This could very well occur within 2021 as COVID-19 vaccines are now available. If you would like information about this content we will be happy to work with you. More recovery is expected in 2023, according to the GBTA, with full recovery by 2024, at $1.48 trillion in spending, which is just above 2019 pre-pandemic spending of $1.4 trillion. Travel buyers have the honor of facilitating a smooth and safe journey to reconnecting for their companys employees but its no mean feat. Another important aspect of the business travel forecast is the fact that most employees now see corporate travel as a perk (TripActions, 2019). The profile mix varies from company to company, and its possible for all four to coexist within the same organization, although some might feature more prominently in some companies and less in others. The company also set up tracking codes in its customer-relationship-management system to monitor when sales are won or lost due to competitive travel, which involved working with its corporate travel agent to get data on corporate-travel bookings. By 2023, the company is planning to fully recover its internal travel spend, although it is still debating whether it is necessary to visit suppliers in person. Some assumptions were made on how likely it was that some forms of corporate travel would recover rather than be substituted by videoconference technology. Copyright 2022 United Press International, Inc. All Rights Reserved. For instance, airlines can personalize flight experiences by improving the functionality of their mobile apps to allow passengers to preorder their meals and snacks or make special requests. Much has changed since then, thanks largely to progress on the vaccination front. The comeback of corporate travel: How should companies be planning? Understand future pricing in air, hotel and ground transportation to build and budget your travel programRead the report. The authors wish to thank Guenter Fuchs, Jennifer Heller, and Jillian Tellez for their contributions to this article. The White House announced Tuesday that Robert Fenton Jr., a regional administrator with Federal Emergency Management Agency, has been named the country's new monkeypox coordinator. Corporate travel policies are becoming more flexible. Theres no consensus, however, among business leaders about what to do with this newfound flexibility, and many organizations have not yet clearly communicated a vision for postpandemic work: around 30 percent of executives in a recent surveysay they have not heard about specific plans for corporate travel after the pandemic, while another 28 percent described their companies plans as vague. We strive to provide individuals with disabilities equal access to our website. Business travel spending worldwide will likely jump more than 37% next year to over $1 trillion but the normally lucrative industry won't fully recover until 2024, according to a new industry forecast released Wednesday. As the company tentatively restarted its business trips, this never left cohort was the priority. Travel can even help improve confidence and interpersonal relationship skills. Your contact request has not been submitted. A year-over-year surge of 38% is expected in 2022, according to the new business travel index, the BTI Outlook, by the Global Business Travel Association. More business travelers opt to stay in home-like accommodations. "The business travel industry recognizes there are factors, related to COVID-19 and beyond, that could impact the road ahead over the coming years. Read our Global Privacy Policy and Notice | Cookies Policy |SiteMap | 2022 @CWT, Understand future pricing in air, hotel and ground transportation to build and budget your travel program. A dynamic business travel policy adjusts according to available options at the time of booking. Business travel spending this year will likely rise 14% from 2020 to $754 billion, slower than the 21% year-over-year increase it forecast in February. Keep channels of communication open and allow employees to give feedback and raise concerns With the workforce becoming younger, more employees are looking to do more than work during their trips away from the office. Nearly 40 percent of the workforce in the United States has the potential to work from anywhere. Business travelers have become more open to considering staying somewhere other than traditional chain hotels. You can unsubscribe at any point in the future from our mailing list using the unsubscribe link on any of our emails. All Rights Reserved. Despite new markets, China will continue to be the top business travel market in the next couple of years. File Photo by Vickie Flores/EPA-EFE, Biden to meet remotely with Michigan Gov. Companies in the tourism industry can capitalize on this trend by focusing their marketing campaigns on local tourist attractions and events. For instance, they can inform a corporate-travel planner how many seats are being booked by the rest of the companys sector, signaling whether the company is ahead of or behind the curve. 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). Should they use rental cars, rideshares, taxis, or flights? This way, business travelers can adjust their plans accordingly and minimize downtime. Subscribed to {PRACTICE_NAME} email alerts. Managing employee risks correctly, on the contrary, may translate into competitive advantage for any organisation. Blockchain can also ensure that every bit of travel information is always accessible. However, there is optimism overall as the industry, companies and travelers worldwide lean into recovery and the much-needed return to business travel.". Internal travel encompasses trips taken for intracompany purposes, where employees participate in activities such as training, team building, or inspection of field operations. This month the UK has relaxed travel requirements for South Africans, 27 EU Member States have lifted their travel ban, Mauritius is re-open for travel, and MSC Cruises are back in local waters. How should corporations prepare for the next phase of business travel? All these technologies will greatly benefit business travelers looking to maximize their time during the journey. 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. Guterres: Humanity is one mistake away from nuclear annihilation. article ul li { list-style: disc; padding: 5px 0; } It seems there is a growing acceptance to live with COVID-19, a position many countries are now adopting and one that has seen travel gain momentum on the road to recovery. If youre more concerned of your employees not doing enough business, though, time tracking software can help ensure sufficient productivity. As many companies adopt targets for environmental sustainability, these are naturally demanding action on business travel. The company instituted different policies for each level, including when masks must be worn, the permitted group size for indoor gatherings, and what lodging choices should be made (for example, home shares are avoided for safety and sanitation reasons). Leadership can play a prominent role in modeling how to travel in this new reality by clearly reiterating company policies. This can cause reputational damage, rising costs and negatively impact company performance. Leadership can communicate that its OK for them to take it slowly and that they should raise concerns if they ever feel unsafe. Many of these travel trends center around technology. What does this mean for travel? This trend towards self-booking may also be another offshoot of the generational shift in corporate travelers. However, business travelers will continue to rely on human support for complex issues and travel emergencies. COVID-19 has already demanded collaboration across multiple roles and departments from Risk Management and Human Resources (HR) to Procurement, Communication and the C-Suite. Information websites, travel help desks, and easily digestible infographics could all be used to get the message across. And since the technology decentralizes data and arranges it into permanent blocks, blockchain offers more security. Dynamic travel policies also have a higher adoption rate. "Of any year we've issued the BTI Outlook forecast, this one was the most anticipated and it's no surprise," GBTA CEO Suzanne Neufang said in a statement. At the time of writing, more than 40 percent of the US population has been fully vaccinated, with more than 50 percent having received at least one dose. On the flip side, never returning business travelers may still make exceptions for key events that are held regionally. Information in these trends is also useful to travel management companies and businesses in the hospitality and tourism industry. The technology makes data storage and access easier. Organizations can meet regularly to discuss data-driven insights and align on next steps. Whitmer on CHIPS and Science Act. The company is developing internal brochures and a communications plan to keep its employees informed. Keep it clean. As travel gradually ramps up, understanding both the company goals and the needs of a new traveller is a crucial task for travel managers. Blockchain can greatly improve the security of travel information. According to surveys, international business travelers consider travel as valuable to professional and personal growth. Aug. 2 (UPI) -- One man was killed and five others were wounded in a Monday night shooting in northeast Washington D.C., the latest in a series of mass shootings that have affected the city. Global business travel spending declined nearly 54% in 2020 to $661 billion. Aug. 2 (UPI) -- Officials in California and Illinois have declared public health emergencies over spread of the monkeypox virus in their states. Use of this website signifies your agreement to theTerms of Use| We are committed to protecting the personal data of our clients' travelers. Planning for the future can feel like flying through a fog of uncertainty, which makes it even more important for players to leverage real-time data to inform their decision making. External travel, on the other hand, refers to trips employees take for engagements outside the company, including in-person meetings with clients and suppliers, trade conferences, and customer sales calls. McKinsey_Website_Accessibility@mckinsey.com, reevaluating working and organizational arrangements, Travel, Logistics & Infrastructure Practice. Thank you for your interest in CWT, we will contact you soon. Through interviews with leaders at CWT and GBTA, in-depth data from acclaimed global futurist and NY Times best-selling author, Dr. Shawn DuBravac (Avrio Institute) the forecast shows insight into Hotel, Air and Ground pricing globally, and sector trends, youll be one step ahead of the curve., Suzanne Neufang, CEO & Executive Director, GBTA on planning for the future. Around 70 percent of executives said their companies will employ more temporary workers than before the pandemic, and 72 percent of executives report that their companies have started to adopt permanent remote-working arrangements for a subset of their employees. After all, millennials prefer self-booking when they travel so that they can find flights and accommodations that meet their preferences. Thank you for your interest in CWT. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. We still need to visit clients and prospects, physically see, touch and experience products, shake hands, build contact, and maintain human relationships. We have waited a long time for this. Advertisement. Texas abortion law turns wanted pregnancy into medical nightmare. How (and should) companies distinguish between what activities vaccinated and unvaccinated employees can participate in? The bulk of its internal travel was for the purposes of internal collaboration in 2019, a third of which is expected to be permanently eliminated, while the rest should gradually return over the rest of this year and 2022. Travel suppliers and mobile network operators are working together to bring high-speed internet into the cabin. As such, 61% of employees would rather leverage video conferencing platforms than physically venture out to other lands (Forbes, 2020). Hotel owners or rental car companies can use these travel trends to gain insights into their customer base. Its critical that organizations communicate clearly what their corporate-travel policies are at any given moment in time, for every stage of the journeyfrom pre- to post-trip. Check out our article on the benefits of using business process management software. House Speaker Nancy Pelosi lands in Taiwan amid tensions with China, Major storm could throw 'wrench' into early Thanksgiving travel, CDC adds four countries to list of high-risk destinations for COVID-19, California gas prices reach record high for 2nd consecutive day. Please note, that FinancesOnline lists all vendors, were not limited only to the ones that pay us, and all software providers have an equal opportunity to get featured in our rankings and comparisons, win awards, gather user reviews, all in our effort to give you reliable advice that will enable you to make well-informed purchase decisions. Business travel will likely rise next year but a recovery to pre-pandemic levels isn't likely until 2024. Here are some artificial intelligence statistics you may find interesting. Artificial intelligence and virtual reality can be used to discover travelers preferences. By this time, millennials and Gen Z-ers will be doing much of the traveling given their respective shares in the labor force.