CORPORATE travel


CORPORATE TRAVEL volumes recovered in 2023 but there were conflicting views on the extent of the recovery. A Deloitte survey of corporate travel


managers and executives in Europe and the US, published in April, suggested the sector was unlikely to return to pre-pandemic volumes due to pressure on companies to cut carbon footprints, although it forecast spending would recover to 2019 levels by 2024-25. It warned: “Climate concerns will likely put a cap on corporate travel ە JDLQV IRU VHYHUDOb\HDUV WR FRPH


FIGURE 63: BIGGEST BARRIERS TO BUSINESS TRAVEL IN 2023


10 20 30 40 50 60 70


0 69% 63% 44% 38% 28% 22% 15%


RISING costs are rated the biggest barrier to business


travel (Figure 63). Outbound business travel from the UK


remains some way down on its pre-pandemic level (Figure 64). Corporate travel globally has


yet to recover fully (Figure 65) and there appears something of a shift away from premium corporate travel (Figure 66). UK domestic business travel


Source: GBTA, October 2023 Base: 865 GBTA members


also appears to have remained well down in 2023 (Figure 67)


Revenues return but will volumes hit plateau?


Climate concerns ‘will likely put a cap’ on corporate travel gains, according to a Deloitte report


The survey found 86% of large


corporates in Europe and 79% in the US were looking to cut travel per employee by 10% or more by 2030 to meet sustainability targets, and 40% in Europe and 33% in the US to reduce travel by 20% or more. The authors noted: “42% of respondents in the US and 45% in Europe are in the process of implementing a structure to assign carbon-emission ە EXGJHWV DORQJVLGH ILQDQFLDO EXGJHWV The report also found flexible


working arrangements were affecting travel volumes, noting: “Distributed workforces make it more complicated ە WR DUUDQJH LQ SHUVRQ PHHWLQJV Yet the Global Business Travel


Association (GBTA) celebrated an LQ FRUSRUDWH WUDYHO ەGQXREHU “DFFHOHUDWHG in August and forecast in its annual Business Travel Index (BTI) Report that global business travel spending would surpass the pre-pandemic level in 2024. UK corporate travel leaders hailed


a strong recovery at the Business Travel Association (BTA) conference in September, with Suzanne Horner, chief executive of Gray Dawes and chair of the BTA, noting: “Most people report being DKHDG RI


15%


16% 7%


director of Good Travel Management, conceded “the whole market may not EXW LQVLVWHG “'HPDQG LQ WKH ەHUHKW EH


The Deloitte view


If 2022 was the year of ‘the new normal’, then 2023 was the year the industry adapted to the reality of the change in corporate travel. The two biggest headwinds affecting


business travel are the continued focus on sustainability and ongoing pressure to reduce costs due to the uncertain economic environment. Most organisations have committed to being net zero by 2050 or earlier, and one of the most influential levers they can pull is how and when they travel. In addition, with economic and political uncertainty expected to continue in 2024, organisations are seeking to cut costs. Travel businesses which place


sustainability and cost control at the core of their offering will be well-positioned to capitalise on these trends. Technology and artificial intelligence will play a crucial role in enabling businesses to address sustainability and cost objectives. Significant investment is expected in these areas. The value of in-person interactions is


still clearly recognised, so the way in which organisations go about their travel is changing as they look to achieve business growth and profitability while reducing costs and CO2 emissions. There are still clear benefits to in-person interaction, but businesses are experimenting with


smarter and more efficient ways to go about their business meetings. One example relates to length of stay. With the changing nature of corporate


travel, including longer stays and less flying, as well as the increasing focus on employee welfare, companies need to adapt business travel programmes to better support their employees. There is a substantial opportunity for


businesses that can help organisations tackle their challenges head-on. We expect to see


further consolidation across the industry. Q James Leggo, assistant director, and Jon Bolger, head of Business Travel


.HYLQ +DUULVRQ PDQDJLQJ ە 11%


50 Travel Weekly Insight Report 2024


Budgets not kept pace with travel costs


recession concerns Inflation/


Geopolitical events


disruption Travel


Recruitment/ retention Climate impact


Travel confidence


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60