Corporate travel adapts to post-pandemic realities with fewer trips, new priorities
LONDON, UNITED KINGDOM — Executives are increasingly opting out of one-day business trips by air, signaling a permanent change in travel patterns.
Suzanne Neufang, CEO of the Global Business Travel Association (GBTA), attributes this trend to a combination of factors including travel disruptions, environmental concerns, and evolving work attitudes post-pandemic.
The ‘new normal’ in corporate travel
“The way companies travel is different,” Neufang told Financial Times. “So that is a new normal and that is probably here to stay.”
This transformation is particularly evident in the decline of single-day flight trips, which “went out the door at the beginning of Covid and hasn’t really come back.”
Despite fewer trips, companies are struggling to reduce costs due to inflationary pressures.
The GBTA projects that inflation-adjusted global corporate travel spending will not return to pre-pandemic levels until 2027. However, without adjusting for inflation, spending is expected to reach a record $1.48 trillion by the end of this year, surpassing pre-pandemic figures for the first time.
Economic and environmental factors drive changes
Several factors contribute to this shift in corporate travel habits:
- Travel Disruptions: A 2023 GBTA survey revealed that 50% of respondents cited concerns about disruptions or unpleasant experiences as reasons for reduced willingness to travel for work.
- Environmental Considerations: Companies are increasingly mindful of their carbon footprint, with firms like PwC, EY, and Marsh McLennan outlining plans to cut emissions by reducing air travel.
- Work-Life Balance: Neufang notes the human element, stating, “Day trips are really hard, no matter what, even on the best days they are hard, very early starts and late returns.”
