As the world emerges from the shadows of the pandemic, business travel is making a strong comeback, but with a notable shift in priorities. Companies are now prioritising cost-effectiveness and environmental responsibility over the luxuries of the past. The once-coveted business class seats are being swapped for economy, as corporations adapt to a new era of travel.
Recent data from various sectors paints a clear picture of this transformation. Iberia, Spain’s largest airline, reports that corporate traffic has returned to pre-Covid levels. American Express reveals that over 85% of British businesses plan to maintain or increase their travel spending in the coming year, a significant jump from 42% in 2022.
Businesses recognise the value of travel in driving growth and fostering employee development, with benefits such as stronger client relationships and a deeper understanding of local markets. However, this resurgence comes with a caveat. Companies are cutting back on extras, opting for budget airlines and economy class seats for European flights. Even for long-haul trips, employees below the C-suite are being asked to fly economy and share hotel rooms with colleagues.
Travelogix and The Advantage Travel Partnership report a 7% decrease in business class bookings and a 50% drop in first-class bookings compared to 2023. Conversely, economy class bookings have risen from 71% in 2023 to 79% this year.
The shift towards affordability is accompanied by a growing trend of “bleisure” travel, where employees combine business trips with leisure activities. Travellers are increasingly incorporating personal time into their corporate journeys, often by including a Saturday night stay to lower fares. Navan, a corporate travel management platform, recorded a 124% increase in bleisure travel bookings in 2023 compared to 2022, with the trend continuing to grow in 2024.
Sustainability is another key factor driving the change in business travel habits. Companies are becoming more conscious of their carbon footprint, and younger generations, particularly Gen Z employees, are actively working with their employers to promote environmentally friendly practices. This includes greater use of public transport, choosing eco-friendly accommodation, and extending trips to accommodate more meetings, thereby reducing the overall number of flights.
The business travel landscape may have changed, but its importance remains undiminished. While emails and virtual meetings have their place, they cannot replicate the immersive experience and relationship-building opportunities that come with face-to-face interactions. As Alexander Peterson, a travel analyst, notes, “Video-calling works fine for a series of one-hour meetings, but for multi-day events, travel is recovering.”
As businesses navigate this new era of travel, they must strike a balance between cost-effectiveness, sustainability, and the invaluable benefits of in-person connections. The lavish heyday of business travel may be a thing of the past, but the industry’s resilience and adaptability ensure that it will continue to play a vital role in the global economy.
Post Disclaimer
The following content has been published by Stockmark.IT. All information utilised in the creation of this communication has been gathered from publicly available sources that we consider reliable. Nevertheless, we cannot guarantee the accuracy or completeness of this communication.
This communication is intended solely for informational purposes and should not be construed as an offer, recommendation, solicitation, inducement, or invitation by or on behalf of the Company or any affiliates to engage in any investment activities. The opinions and views expressed by the authors are their own and do not necessarily reflect those of the Company, its affiliates, or any other third party.
The services and products mentioned in this communication may not be suitable for all recipients, by continuing to read this website and its content you agree to the terms of this disclaimer.