Corporate policies restricting business travel are decreasing for both small and large businesses. The negative effects of reduced business travel are becoming increasingly clear.
The current state: Less than half of organizations (42%) have implemented policies to limit business travel due to the pandemic — down from 50% in Q2.
- go deeper: Larger companies are more likely than smaller companies to have numerous travel policies – particularly those related to cost control or spending restrictions.
Impending hurdles: According to the latest Q3 Business Travel Index, business travel activity is expected to weaken in the coming months due to unfavorable economic conditions.
- With many economists now expecting a mild recession in 2023, companies are likely to scale back spending and business travel in the coming months.
Using the numbers: While four in ten executives surveyed plan to spend the same or more on group business travel such as conferences, conventions and trade shows over the next six months, more than six in ten expect their company to spend less on all types of business travel over the next six months in comparison to 2019.
- A smaller proportion of business travelers in Q3 compared to Q2 expect at least one trip in the next six months.
What else: Remote work does not appear to have a significant impact on business travel. Remote workers expect MORE business trips than in-office workers over the next six months.
Impact of reduced business travel is becoming increasingly apparent to both business travelers and executives.
- Business travel is considered essential by more than three quarters of corporate executives.
From Q2, Four out of ten corporate executives say reduced business travel is negatively impacting their organization’s financial performance.
develop relationships continue to be recognized as the most important component of business travel to job performance for both business travelers and executives.
- What else: Executives and business travelers are seeing increasing value in their employees’ professional development as meeting face-to-face to attend conferences, trade shows, or meetings with customers and other stakeholders.
A glimpse of hope: Nearly nine in ten (86%) of the executive organizations surveyed have implemented sustainable business travel policies.
- And if more sustainable business travel options were readily available and accessible, both executives and business travelers would increase their overall business travel.
outlook The most important results of the Business Travel Tracker can be found here.
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