Expectations for business travel are normalizing. In line with other travel metrics softening and in line with previous quarters. 8 out of 10 business travelers plan to travel To attend a conference, convention, or trade show in the next six months.
- Although still lagging behind group travel demand, intentions to travel for temporary business trips to visit customers, suppliers, and other stakeholders rose slightly from 74% in Q1 to 78% in Q2. Increased.
- Small businesses and remote workers drive more business travel demand than large businesses and business travelers who work entirely on-site.
In the short term, expectations for business travel spending are also improving.
- Increase in the proportion of corporate managers Expect to spend the same amount or more on your business over the next six months. almost 4 out of 10 business executives All types of business travel spending are expected to be flat or higher than last year, up from less than 3 in 10 in the first quarter.
Travel barriers: Although cost constraints remain the biggest barrier to business travel, Travel hassles are increasingly having a negative impact, but cost concerns are declining.
In terms of numbers: Nearly six in 10 business executives (57%) cited cost control as a barrier to limiting future business travel, down from 71% in the first quarter. moreovercorporate policies such as cost control and business travel restrictions are on the decline.
- Business travelers employed by large companies are more likely to cite cost constraints as a barrier to attending events than those employed by small businesses.
- A quarter of business travelers cited cost or budget constraints as the biggest barrier to business travel, down from 36% in Q1.
While cost constraints are decreasing, other barriers remain, such as the hassle of transportation.
A quarter of business travelers report avoiding or canceling a trip Travel for non-expenses in the past year.
- As in Q1, the top reason for avoiding a business trip is travel time (36%), followed by the possibility of flight delays or cancellations (24%).
Business travel remains considered essential.
- Consistent with last quarter, nearly eight in 10 (79%) executives agree that business travel is essential to running their company..
stillAlmost half of companies (47%) have policies restricting business travel.
- As in Q1, the top policies in place continue to be more rigorously evaluated for why and who travels.
In addition to a more rigorous evaluation, Effects of each trip is the deciding factor when approving or committing to business travel.
- of Ability to meet with multiple clients and customers Visiting customers, suppliers, and other stakeholders, or attending events such as conferences and trade shows, are the top motivations for approving or committing to travel.
what else: The ability to interview multiple customers at once and the ability to introduce new products/services is more important for large companies than for small businesses.
- For small businesses, relationships with key customers and closing deals become more important factors when approving travel.
Hybrid work arrangements are becoming increasingly common. The proportion of business executives (53%) is increasing. The majority of our employees work in a hybrid manner This is due to a decrease in the number of employees working full time from home or the office, compared to 39% in Q2 2022.
By adopting flexible working arrangements, Blended travel creates new opportunities.
- Similar to Q1, over the past six months, half of remote business travelers extended their trips for leisure, and 26% traveled to work remotely from another location.
- a Collaborative culture/policies A key element for business travelers to work remotely in new destinations. Explore new destinations at your expense is the biggest factor in extending business trips for leisure.
- Employers were more likely to support flexible working arrangements for employees to work in different destinations (77%) than for employees to extend their business trips for leisure (51%) .
Future plans: Business travel conditions remain largely resilient in the first half of 2023, with demand expected to continue growing into the third quarter. However, as economic headwinds intensify, conditions are likely to become even more challenging towards the end of the year, leading to a slowdown in business activity.