Companies are rethinking when and why employees should travel, with a commitment to workplace flexibility, sustainability and return on investment
New YorkAnd April 18 2022 /PRNewswire/-
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- Corporate travel did not meet the expectations of most companies In the second half of 2021 as Delta and Omicron variables hamper plans. While a third of travel managers surveyed June 2021 Spending is expected to reach half of 2019 by the end of the year, yet only 8% have made it that far.
- Business travel spending takes at least two years to reach pre-pandemic levels: It is expected to reach 36% of 2019 levels in the second quarter of 2022, and 55% by the end of the year.
- Increase corporate offerings Flexible working arrangements will have an ongoing impact on business travel. A quarter of companies say working from home will result in more travel to headquarters, but will likely result in less travel overall. Office-dominant companies are likely to double their 2019 travel spending levels by the end of 2023.
- For international travel, 1 in 4 participants is expected Frequency of travel to Europe approach or exceed pre-pandemic levels this year. Asia And Latin america They remain lagging in recovery forecasts.
- Three out of 10 companies expect Sustainability goals lead to 11-25% reduction in travel budgets by 2025.
- As in-person attendance increases, conferences and events face another challenging year. These events provide valuable networking opportunities, but travel managers also value Presentation of content relies more on personal participation What they did in 2021.
Why is this important
Even as health concerns and travel restrictions related to COVID-19 fade, corporate travel faces complex speculation. Several companies are now implementing the back-to-office plans they delayed last fall, and the shift is likely to be accompanied by an increase in corporate travel. However, according to Deloitte’s new report, “Reshaping the Landscape: Corporate Travel in 2022 and Beyond,” a rebound to 2019 spending levels is not expected this year or next. While the uncertainty around international relations and additional variables of COVID-19 will continue to affect corporate travel, the scope of why and when employees can be expected to travel for work is becoming clearer.
The study is based on a survey of 150 CEOs in the United States with oversight of the travel budget Between February 10 and February 18 2022.
Business trips are scheduled to start in 2022, but return before the epidemic is delayed
Deloitte conducted the first corporate travel survey in June 2021, when the recovery appeared to be in line with plans to return to the office initially laid out for the fall. However, as Delta was named a different kind of concern a month later, several major companies backed away from their initiatives. Now, many of these companies are reassessing their overall approach to travel, prompting travel managers to lower their expectations while looking for opportunities to increase the financial savings and eco-friendly practices achieved from two years of limited travel.
- A third (34%) of corporate travel managers surveyed in June 2021 expected to reach half of their 2019 travel spending by the end of 2021; However, only 8% achieved this feat.
- While 17% of travel managers expect a full recovery by the end of 2022, this is a significant drop from the 54% who projected the same last summer.
- Overall, strong growth is expected in 2022, but corporate travel spending is not expected to recover to pre-pandemic levels this year or next. Travel spending is expected to reach 36% of 2019 levels by the end of the second quarter of 2022, rise to 55% by the end of the year, and 68% by the end of 2023.
- COVID-19 variables are a key consideration for this downward review: two-thirds (66%) of respondents say Delta and Omicron variables have delayed travel schedules; 1 in 7 (15%) reported significant rethinking.
- Travel restrictions and unwillingness of staff to travel remain the biggest deterrent to full returns; However, their impact is down 18% from 2021. Concerns about increased travel prices remain an ongoing concern, however they increased slightly (1%) compared to summer 2021.
- The resurgence of live industry events is now among the top five reasons for business travel. When considering the triggers for business travel, persistent low infection rates remain at the top of the list, followed by customers and employees returning to the office, and easing quarantine requirements.
International travel is preparing for a slow return
Despite easing restrictions on some destinations, international business travel still presents many challenges including testing and quarantine requirements and generally unpredictable regulations. Among those surveyed, international travel accounts for a quarter of 2019 spending, and the outlook remains more conservative than domestic travel. Geopolitical developments may further reduce international travel plans, especially to Europe.
- More than half (54%) of respondents expect international travel to Europe to resume, but remain below pre-pandemic levels.
- Sales visits (43%), leadership meetings (32%) and client project work (31%) are the most important drivers of international corporate travel.
- Europe Leading destinations for US-based travelers, with nearly 1 in 4 companies (24%) saying frequency will approach or exceed pre-pandemic levels by the end of 2022, followed by Asia (15%) and Latin america (12%).
- More than half of the companies have reasons to visit Africa (70%) The Middle East (54%) or Australia/ Oceania (52%) do not expect to travel to those regions or expect very little travel this year.
quote key
“Business travel looked ready to take off last summer, but the emergence of COVID-19 variables quickly put plans on hold — and as a result, leaders are becoming more conservative in their estimates of business travel recovery. While many of us are eager to see our engagement — customers, clients and partners — In person, technology platforms have made it possible for most companies to not only continue their operations from afar, but thrive in doing so.With workplace flexibility that shows no signs of turning away, companies are reassessing and reprioritizing when and why employees travel — which can To create a portfolio full of new opportunities for organizations to develop and grow.”
– Mike soVice President of Deloitte LLP and a non-certified leader in transportation, hospitality and services in the United States
Workplace flexibility is transforming work travel
Many employers have implemented flexible workplace policies over the past two years, and travel managers expect the rate of working from home in the future to be 2.5 times higher than it was before the pandemic. This will continue to affect how and when employees travel for both home-dominant companies (where the average employee comes to the office zero to two days a week in the second quarter of 2022) and office-dominant companies (where the average employee comes to the office three days). at least a week in the second quarter of 2022).
- For businesses dominated by working from home in the second quarter of 2022, 36% expect corporate travel spending to recover to pre-pandemic levels by the end of 2023.
- In contrast, 71% of office-dominant companies say their travel spending will recover by the end of 2023.
- As a result of flexible working arrangements, 1 in 4 participants expects more trips to corporate headquarters, despite less frequent travel overall.
- For employees who have moved during the pandemic, two-thirds of companies will reimburse for trips to headquarters. However, nearly a third (29%) of companies leave employees to bear the cost themselves.
- Additionally, private rentals, which have given travelers more space to distance themselves from others during the pandemic, have not become a mainstay of corporate travel programs. Only 1 in 10 companies includes non-traditional accommodations in their reservation tools, and nearly half (49%) do not compensate employees for non-hotel accommodations.
Sustainability and cost guide decisions about when to travel
The sharp drop in corporate travel during the pandemic has helped companies make significant gains toward their sustainability goals — and their bottom line. As a result, when deciding which trips employees should take, business leaders weigh the expenses and carbon emissions involved, along with the ability of technology to replace the need to meet in person.
- A third of travel managers (35%) surveyed said their companies pledged to reduce carbon emissions by a certain amount over a certain period of time, which affects when and how employees travel.
- Most respondents expect that sustainability will reduce their travel spending for 2025 by 10% or less. However, nearly 3 in 10 expect a decline of 11-25%.
- The rise in travel prices grew slightly as a concern from 2021 to 2022. Nearly 3 in 4 companies say they will seek to control costs by limiting the number of trips taken this year.
- Nearly 1 in 3 travel service providers seek guidance from travel management companies on how to reduce their carbon footprint. Furthermore, a quarter of travel managers say they will prioritize travel suppliers that invest in sustainability.
quote key
“As the epidemiological situation continues to improve, business leaders have new factors to consider when determining which journeys justify time, expense, and carbon emissions. Environmental and linear priorities will be supported by technology and behavioral changes resulting from two years of mostly virtual meetings and events. Technology platforms will continue to champion The need for some trips long after the public health crisis has subsided.”
– Eileen CrowleyVice President of Deloitte & Touche LLP and the leading transportation, hospitality and services company in the United States
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Source Deloitte
