The International Workplace Group report highlights how business executives are prioritising strategically important meetings for corporate spend, while routine meetings between global participants are taking place largely online using the available technology, amidst rising costs, environmental concerns and geopolitical uncertainty.
The study among more than 500 business leaders highlighted that the rapid development of digital infrastructure means functional meetings can now be held online. More than three quarters (77%) of business leaders say technology has enabled them to continue to conduct pure ‘business as usual’ meetings virtually to drive efficiency.
That’s not to say business travel has been made redundant by hybrid working. In fact, the majority (87%) of CEOs firmly believe that technology will never replace the value of strategically important face-to-face meetings, and business travel will invariably play a crucial role in strengthening relationships and when signing key commercial deals.
The rising cost of business travel
A third of business leaders cited escalating costs as an influential factor for their post-pandemic travel decisions. Research into the cost of business travel by Harris Williams found that airfares had risen by 38% when compared to pre-pandemic prices and hotel costs had risen by at least 82%. With an expectation of continued growth in 2025, 77% of CEOs noted that the ability to host meetings virtually enables them to reduce the number of business trips, allowing for a focus on crucial face-to-face meetings.
Geopolitical uncertainty
Looking at other macro trends, CEOs said that increasing geopolitical uncertainty had significantly impacted the nature of travel at their companies. One in five said that the current geopolitical climate has had a major impact on business travel, with changes in the global health landscape (19%) and visa regulations (19%) also influencing how they prioritise strategically important travel.
Environmental considerations
As companies look to reduce their environmental footprint, many are more considered in their approach to corporate travel. Three quarters (75%) of leaders said that the development of hybrid work and the adoption of online platforms has enabled them to reduce the number of environmentally unfriendly trips. For larger organisations facing greater scrutiny over their carbon emissions, corporate ESG reporting and policies have led to leaders being more strategic with their travel plans.
Extending business trips to maximise efficiencies
Three quarters (75%) of corporate leaders said that business travel is now more efficient and more than half (61%) say they tend to travel less but stay longer due to the availability of flexible workspaces enabling them to remain productive between meetings. A quarter (26%) now extend their travels to fit in additional meetings, reducing the need for short visits, whilst others (23%) have attended industry events or conferences to maximise their trips.
As leaders enjoy greater flexibility in their working patterns, 87% are spending the extra time to enjoy their destination and experience local culture. One quarter (24%) said they had actually combined a work trip with a holiday. In an encouraging move for the whole business, the benefits of travel and leisure are not exclusive to leaders – with 74% encouraging their employees to work from abroad to make the most of travelling, too.
Mark Dixon, International Workplace Group CEO stated: “Advancements in digital technology coupled with the rising cost of international travel, geopolitical uncertainty and environmental considerations mean the world of business travel has been transformed and we are unlikely to see a return to pre-pandemic levels.
“Executives are now prioritising travel for the most strategically important meetings such as major business deals or nurturing significant relationships with partners. For these types of occasions, technology can and will never replace the value of in-person transactions for the most valuable meetings.”
IWG
