How Corporations Are Adapting to the New World of Travel – By Rudy Daniello
How corporations are adapting to the new world of travel
This article originally appeared on Amadeus.
The spread of the Omicron variant over the past few months might have slowed down recovery, but it has not taken away travelers hunger to get back on the road. We have seen an increase in the uptake for vaccinations and with this, in addition to the flight safety protocols, more and more fliers taking to the skies.
Business travel is also returning, take it from my family who are experiencing me being back on the road again. Despite recovery happening at a different pace across the world, some markets are slowly emerging from the risk zone and business travelers are dusting off their hold all bags, looking to take that next trip.
We recently spoke with over 250 different executives from Travel Management Companies (TMCs) around the world asking them about the challenges that they are facing as well as how the corporations they work for are tackling the return to travel.
1. Business is BETTER in real life
Yes, we did get used to videoconferencing and digital meetings the last couple of years, but the value of spending time in person with clients, prospects or partners has only been reinforced by the pandemic. I am a true believer in building relationships in person and it seems I am not alone judging by our survey results.
In our survey, TMC executives believe the impact of videoconferencing on business travel depends on the reason for the trip, and there was a strong consensus among our TMC interviewees that physical customer interactions will be prioritized, with only 22 per cent considering these types of meeting will be replaced by videoconferencing. Unsurprisingly, the figures are even lower for business trips (20 per cent), conferences and fairs and exhibitions (17 per cent). When it comes to internal meetings and trainings, according to our survey people are more in favor of these being replaced by virtual meetings (internal meetings at 77 per cent and trainings/ onboarding at 73 per cent). It seems we are in agreement, there is no adequate substitute for face-to-face meetings.
Our TMCs also feel travel patterns are changing. Fewer trips but longer stays, with a higher spend per trip, and that companies are willing to allow for direct flights and premium cabins to ensure traveler safety.
With the rebirth of business trips, ‘bleisure’ travel is once again gaining traction. TMCs in our survey are seeing a growth in these ‘bleisure’ trips. Corporate travelers are opting for longer business journeys to fit in work assignments and weekend leisure in one single trip. With more executives now allowed to work from anywhere, instead of having to be in a specific location, they don’t need to rush back to the office after a trip. They may even take a “workcation”, where they travel to, and work from a leisure destination for an extended period.
2. The HYBRID CONNECTION
These past couple of years the shift to, and quick adoption of hybrid working, from both the employer and employee has been something to celebrate. Who would have dreamt the new possibilities that come with this new way of working, the hybrid connection allowing us to engage both on and offline with our colleagues. However, it hasn’t come without its difficulties – corporations have needed to flex and move at rapid pace, ensuring they empower their employees with the right tools but also adhere to all of rules and regulations – the complexities that came with hybrid working.
One area we are working on is supporting corporations in digital transformation, ensuring they are meeting the new demands that have come with hybrid working. We are working in collaboration with our partner Microsoft to provide a native experience for business travelers, drastically reducing the complexity of travel planning and increasing productivity.
3. Duty of care and managed travel go HAND-IN-HAND
65 per cent of TMC respondents consider an increased focus on duty of care to be a corporate clients’ primary need. In interviewing, TMCs said this trend is partly driven by clients’ internal reorganizations. Since the pandemic started, human resources departments have played a much greater role in reviewing travel policies and processes than ever before.
The level of support for which businesses rely on their travel providers rocketed during the pandemic, travelers need reassurance – they want around the clock support. 92 per cent of TMC executives consider health and safety information before and during the trip to be the business travelers’ primary priority, followed by alerts during the journey (65 per cent) and flexible tickets for last minute booking or changing (50 per cent).
To provide effective duty of care, employers need travelers to book through approved and managed channels. It’s no surprise, therefore, that 56 per cent of TMCs forecast a stricter travel policy as another evolving need for corporations, and one quarter anticipated increased demand for additional transactions that complement an airfare and encompass the whole travel journey such as accommodation or transfers. Partially because of the rising logistical challenges of travel and high chances for disruption, the increased focus on optimizing travel spend, and the renewed emphasis on duty of care.
4. Sustainability becomes a MUST
Before COVID-19, sustainable travel was a “nice to have” but in the present day it has become an essential factor for corporations and travelers alike.
22 per cent of the TMCs from our survey say a sustainable travel offering will be a priority for business travelers. Interviewees told us corporations are increasingly requesting sustainability services as a central part of their requests for travel and expense management. Among the support they see is booking more sustainable options like rail, providing emissions data and finding more environmentally friendly hotels.
These are just some of the factors affecting how corporations, travel agencies and their technology providers like Amadeus are already working together to not just rebuild business travel, but to rebuild it better than it was before. To read more in our findings click here to download our Rebuilding Business Travel eBook.
Rudy Daniello is the Executive Vice President Amadeus Cytric Solutions
Categories: Features