Remote work isn't killing business travel – it's transforming it

The landscape of corporate travel is undergoing a significant transformation. In the past, business travel was primarily for in-person client meetings. However, the pandemic-induced lockdowns necessitated a shift to virtual alternatives. Video conferencing technology became a viable substitute for face-to-face meetings. As the world began to reopen, many corporate leaders recognized that a significant portion of their pre-pandemic business travel was no longer necessary or financially prudent. The convenience and safety of virtual meetings, such as Zoom calls, made them a preferred choice over in-person interactions. This shift had a substantial impact on the business travel industry, with many airlines, particularly US budget carriers, reporting significant financial losses due to a decrease in corporate trips. However, some industry experts anticipate a resurgence and transformation of business travel as people adapt to the practical realities of hybrid and remote work.

A report published by the Global Business Travel Association in August 2023 predicts that the global business travel industry will surpass its pre-pandemic spending level of $1. 4tn (£1. 1tn) in 2024, two years earlier than some industry analysts initially projected. A survey conducted by American Express Global Business Travel (Amex GBT) in collaboration with Harvard Business Review provides some insight into this prediction. The survey, which included 425 US professionals, revealed a shift in the reasons for corporate travel. Instead of sales-driven outings, business trips are now centered on what the report defines as 'non-customer travel': companies are meeting internally. For businesses operating in a hybrid or fully remote setup, traveling for face-to-face interaction has become crucial. Patricia Huska, chief people officer at Amex GBT, notes that the pandemic prompted many people to relocate, altering the demographics of organizations.

While virtual meetings often suffice, the Amex GBT data indicates that they can be an imperfect substitute. 70% of respondents agreed that a primarily remote work model can make employees feel disconnected, and 88% stated that in-person meetings are critical for fostering positive, long-term relationships among workers. Deirdre Mc Gettrick, founder of UFurnish, a UK-based online furniture platform, has experienced this firsthand. Her team of 16 employees, who have been working fully remotely since the pandemic, now travel twice a year for company-wide meetings. These off-sites have a significant impact on business morale and team motivation. The Amex GBT report also highlights other important benefits of business travel. Six in 10 respondents believe that business travel is a key component of professional development, and half concur that their leaders share this belief. Huska adds that employers are beginning to recognize the value in investing in their employees, not just considering the cost of the trip. As hybrid work becomes the norm, business travel, albeit in a new form, will continue to play a significant role.