Business travel is rising again, particularly for corporate events and on-site visits. However, it's essential to prioritize efficient travel arrangements.
According to a Deloitte survey, business travel spending has decreased by 24% compared to 2019 due to the pandemic. However, it is predicted that by 2024, the pre-pandemic level of business travel spending will be restored. The latest survey by Accor worldwide on business travel also supports this prediction, with 57% of the companies surveyed anticipating an increase in their travel budgets for 2024 compared to 2023. The main focus is on saving costs while still facilitating travel experiences. Additionally, 46% of respondents have no plans to restrict business travel for the remainder of the year.
Balancing expectations and environmental protection
It is widely recognized that face-to-face meetings are precious. Industry experts estimate that such meetings generate up to 25% more sales. However, there are other factors to consider. Employee interaction during such meetings is also critical for maintaining good mental health and job satisfaction. Consequently, each trip is carefully evaluated to ensure it is worthwhile regarding both ROI (Return on Investment) and ROE (Return on Expectation). It will only happen if a trip offers an equivalent value.
Many travelers consider environmental protection an important issue, including corporate customers surveyed by Accor. Over half of these customers (54%) listed reducing carbon emissions as their top sustainability priority. Sustainable practices will likely play a significant role in determining which hotels and travel providers will be chosen in 2024. The "Masters of Travel" delegation is also willing to pay a premium for accommodations prioritizing environmental balance.
"Bleisure" - the trend of maximizing travel
Business travelers increasingly opt for "bleisure" trips, combining work and leisure to make the most of their travel. This trend is still in its early stages, but both panel participants and their employees consider it highly valuable for the future. Young workers are most interested in this approach, but it will likely become more widespread. In a 2022 Accor survey, 67% of business travelers said they extended their stays. However, tour operators advise caution from an insurance perspective, as insurance coverage often doesn't include partners or families, and bill sharing can be complicated.