The corporate travel industry’s recovery is well on track! According to a Deloitte Study, corporate travel spending is expected to recover by late 2024. This recovery is largely driven by the increasing number of vaccinations and, finally, the full reopening of borders and economies around the world, with China the finally opening it’s doors earlier this year.
Despite this positive outlook, the recovery of the corporate travel industry is likely to be slower and more complex than initially anticipated. The Deloitte Study highlights that while corporate travel spending may return to pre-pandemic levels by 2024, the nature and purpose of business travel may have changed significantly.
The new normal of corporate travel
The COVID-19 pandemic has accelerated the adoption of virtual meetings and remote working, and many businesses have found that they can achieve their goals without extensive business travel.
In fact, many companies are now questioning the necessity of certain types of business travel, such as conferences and trade shows, and are exploring alternative ways to connect with clients and colleagues.
As a result, the new normal of corporate travel may look very different from the past. Companies may prioritize trips that are essential to their core business, such as sales meetings and client pitches, while reducing or eliminating non-essential travel.
This shift could have significant implications for the airline and hotel industries, as well as for travel management companies. The slack however, is expected to be picked up by increasing airfares and hotel rates.
A cultural shift in travel spend is on the horizon however, with companies able to save money on office space and related spending, their are more free finances for corporate retreats. With company culture more important than ever before for employ retention, offering benefits such as working from home and group socials is a massive part of running a successful business in the post-pandemic age!
The importance of flexibility and adaptability
In this rapidly changing landscape, it is more important than ever for businesses to be flexible and adaptable in their approach to corporate travel. Companies and travel managers should stay up-to-date with the latest travel restrictions and guidelines, and be prepared to adjust their travel plans accordingly.
It is also crucial to have a strong travel management policy in place, which includes measures to ensure the safety and well-being of employees while on the road.
Overall, the Deloitte Study on Corporate Travel Spending provides a positive outlook for the industry, with a projected recovery by expected late in 2024. However, the nature and purpose of business travel may have changed significantly, and it is important for companies to be flexible and adaptable in their approach to corporate travel.
As expert business travel consultants, we at Inspired Travel Group are committed to providing our clients with the latest information and insights to help them navigate this evolving landscape.