Since travel came to a screeching halt in March 2020, many predicted that business travel would never recover, given advances in video conferencing and the adoption of work-from-home policies.
However, according to the Business Travel Index released in August by the Global Business Travel Association, global business travel spending is expected to exceed 2019 levels this year, which is higher than the GBTA's forecast for the previous year. 2 years earlier than I did. A Mastercard survey of travel decision makers, also released in August, found that 9 in 10 believe business travel remains important to driving growth, and more than half expect to travel in 2025. It found that 11% of respondents expect to spend more than $1 billion. Pre-pandemic.
That's music to the ears of airlines and convention hotels, but advances in technology, changing expectations, and new pressures are making it harder for business travelers, frequent fliers, and the companies that manage business travel. The business travel landscape is changing in ways that make travel easier for teams. Here are his five trends that will shape business travel in 2024.
01
“Blaisure” will continue
Remote work is here to stay, and some companies are offering “work from anywhere” benefits, giving employees the opportunity to take extended vacations or family visits abroad. This means corporate travelers can extend their business trips by several days, giving them the opportunity to see more than convention halls and hotel amenities. Employees are benefiting from flexible office policies, and the days of two-day international business trips may soon be in the rearview mirror. However, a distributed workforce can create new challenges when it comes to monitoring spending. Telecommuters may incur different expenses than traditional office workers, such as purchasing subscriptions, office furniture, and computer equipment, which can be more difficult for companies to predict. and explain the expenses.
02
business travel, consumer experience
For companies, combining business and travel isn't always smooth sailing. Managing expenses and reimbursements can be complex. And for employees, the convenience of being able to easily pay with a tap or click in their daily lives can be used to pay for travel, entertainment, etc., as anyone who has gone through the trouble of completing an expense report can attest. payment is missing. That's why many companies are moving to virtual cards to pay for travel expenses. These cards are instantly created for a specific purpose, such as a business trip, a client dinner at a conference, or arranging travel for a potential new employee, and are designed with a wide range of features such as the amount, duration, and type of purchase the card can be used for. Customized spending management is possible. Generate detailed data for tracking, reporting, and automatic reconciliation. It can also be issued directly to mobile wallets, creating a contactless travel experience.
These heightened consumer expectations may also lead companies to expand the benefits of commercial and corporate T&E cards, such as better travel insurance, concierge support, telehealth services, and airport lounge access.
03
AI at your service
Further extension of the “consumerization” of business travel? AI tools that are gaining ground in the leisure travel space, such as virtual travel agents that can customize itineraries and lock in low prices, are likely to have a ripple effect on corporate travel as well. These bots can adjust trips based on T&E policies, budgets, and employee preferences. Also, as business travel costs rise, CWT's 2024 global business travel forecast shows his average daily cost per attendee for meetings and events will increase by 3%, and hotel rates will increase by 3%. It shows an increase of 3.6%. Corporate travel teams will be able to leverage AI more effectively. Predict prices and manage your budget more proactively. It also allows these teams to build more dynamic policies and adjust spending limits by analyzing past spending at a more granular level. AI tools can simplify the difficult expense reporting process for both employees and finance teams by automating the capture and review of repetitive and predictable expenses. According to Mastercard research, 9 out of 10 travel decision makers plan to invest in AI and machine learning to improve processes and personalize travel for their employees.
04
Track your travel impact
Many companies are working together to reduce their carbon footprint. In the Mastercard survey, nine out of 10 travel decision makers said they are focused on environmental, social and governance initiatives, such as tracking greenhouse gas emissions from company travel. Carbon footprint tracking tools that show you the carbon footprint of your business trips and seat selections can help you make greener travel decisions. As sustainability becomes a top priority for companies, we can expect them to look for ways to help them achieve their sustainability goals. For example, Mastercard's T&E consulting services help companies reevaluate their T&E policies and procedures, assess supplier performance, and improve for the future.
05
The rise of the chief travel officer
In many organizations, corporate travel responsibilities are divided among human resources, finance, procurement, technology, and even security teams. Even when using the same tools and platforms, there are often discrepancies when it comes to long-term strategy and decision-making. As business travel becomes more automated, large companies could benefit from a chief travel officer. The Chief Travel Officer is someone who can collaborate across the organization to streamline processes, find efficiencies, and take full advantage of these new tools, enterprise solutions, and corporate card benefits, including travel risk management. That's it. Providing Services, Concierge Support, and Telemedicine.
The resurgence of business travel demonstrates the enduring value of face-to-face interactions: the relationship building, sparking innovation, and deepening trust that comes from sitting across the table and sharing a meal. Masu. Technology may have made the rise of virtual work possible, but it's also making business travel smarter and more seamless than ever.
