{"id":6866,"date":"2023-04-20T10:06:06","date_gmt":"2023-04-20T15:06:06","guid":{"rendered":"https:\/\/danilodiaz-granados.com\/?p=6866"},"modified":"2023-06-14T10:07:58","modified_gmt":"2023-06-14T15:07:58","slug":"round-trip-is-business-travel-back","status":"publish","type":"post","link":"https:\/\/danilodiaz-granados.com\/en\/round-trip-is-business-travel-back\/","title":{"rendered":"Round trip: Is business travel back?"},"content":{"rendered":"

Last year, I wrote about the airline industry\u00a0revamping the business class experience<\/a>. From new seating to destination-inspired menus, all signs pointed to the sector betting on work travel for its COVID-19 pandemic recovery. While it looks like their bet has paid off, travel and hospitality insiders should keep an eye on possible turbulence ahead.<\/p>\n

Business travel rebounds<\/strong><\/p>\n

When travel restrictions and remote work grounded business travel, many wondered if it would ever return to previous levels. Last year, business travel was almost\u00a0two-thirds<\/a>\u00a0of where it was before the pandemic. This year, 32 percent of people\u00a0plan to travel for work<\/a>, compared to the 16 percent who planned to travel last year. Even the majority of remote workers plan on traveling for their jobs this year.<\/p>\n

So, what\u2019s driving the business travel revival? Surprisingly, smaller businesses reported more travel plans this year than larger companies. In a\u00a0Morgan Stanley<\/a>\u00a0survey, two-thirds of companies with less than $1 billion in annual revenue expected to increase their travel budget this year. On the other hand, less than half of billion-dollar-plus businesses are expected to.<\/p>\n

Younger workers are also fueling business travel growth, as millennial and Gen Z employees are\u00a0more likely to travel for work<\/a>\u00a0within the year.<\/p>\n

A murky forecast<\/strong><\/p>\n

While business travel is doing better than expected in the wake of the pandemic, it is still not in the clear. As costs continue to rise, the global economy is top of mind for many. Of course, this affects everything from plane tickets to restaurants, but those in hospitality should also pay attention to potential shake-ups in their industry.<\/p>\n

For example, high room rates could leave companies looking at\u00a0budget hotels and short-term rentals<\/a>\u00a0to save during work trips. Expensive rates might be especially concerning for smaller companies with tight travel budgets.<\/p>\n

Professional events and conferences could also take a hit, as attendance costs per person will likely\u00a0increase by 25 percent<\/a>\u00a0compared to 2019.<\/p>\n

The travel industry should be on the lookout, as well. One concern,\u00a0international business travel hasn\u2019t roared back<\/a>\u00a0as strongly as domestic travel (due in part to companies restricting expensive business-class airfare). Future fuel prices could also largely impact airlines\u2013as well as ground travel.<\/p>\n

What will it take to get back on the road?<\/strong><\/p>\n

Travel and hospitality suffered a staggering amount of setbacks since 2020. Many recent events have hugely impacted these industries\u2013from pandemic-related restrictions and regulations to extreme weather and inflation.<\/p>\n

With so many uncertainties, it\u2019s hard to predict just how much business travel will bounce back in the coming years and what it will look like\u00a0across the globe<\/a>.<\/p>\n

While today\u2019s climate is unpredictable, there are silver linings. Trends like \u201cbleisure\u201d (when employees extend their business trips into leisure trips) and employees traveling as they work remotely (known as \u201cflexcation\u201d) are\u00a0growing and creating opportunities<\/a>\u00a0for those in travel and hospitality. Younger workers are especially embracing these trends.<\/p>\n

Given the ups and downs of global economies, politics and events, it\u2019s impossible to say when business travel will return to pre-pandemic levels. However, it\u2019s clear smaller companies, millennials and Gen Z are helping to drive its recovery.<\/p>\n

As we watch business travel\u2019s comeback, I would pay close attention to how this new class of travelers redefines the work trip.<\/p>\n","protected":false},"excerpt":{"rendered":"

Last year, I wrote about the airline industry\u00a0revamping the business class experience. From new seating to destination-inspired menus, all signs pointed to the sector betting on work travel for its COVID-19 pandemic recovery. While it looks like their bet has paid off, travel and hospitality insiders should keep an eye on possible turbulence ahead. Business travel rebounds When travel restrictions and remote work grounded business travel, many wondered if it would ever return to previous levels. Last year, business travel was almost\u00a0two-thirds\u00a0of where it was before the pandemic. This year, 32 percent of people\u00a0plan to travel for work, compared to the 16 percent who planned to travel last year. Even the majority of remote workers plan on traveling for their jobs this year. So, what\u2019s driving the business travel revival? Surprisingly, smaller businesses reported more travel plans this year than larger companies. In a\u00a0Morgan Stanley\u00a0survey, two-thirds of companies with less than $1 billion in annual revenue expected to increase their travel budget this year. On the other hand, less than half of billion-dollar-plus businesses are expected to. Younger workers are also fueling business travel growth, as millennial and Gen Z employees are\u00a0more likely to travel for work\u00a0within the year. A […]<\/p>\n","protected":false},"author":7,"featured_media":6864,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"inline_featured_image":false,"_monsterinsights_skip_tracking":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[227],"tags":[763,292,240,762],"class_list":["post-6866","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hospitality","tag-business-travel","tag-danilo-diazgranados-en","tag-hospitality","tag-travel-industry"],"yoast_head":"\nRound trip: Is business travel back? - Danilo D\u00edazgranados Manglano<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/danilodiaz-granados.com\/en\/round-trip-is-business-travel-back\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Round trip: Is business travel back? - Danilo D\u00edazgranados Manglano\" \/>\n<meta property=\"og:description\" content=\"Last year, I wrote about the airline industry\u00a0revamping the business class experience. From new seating to destination-inspired menus, all signs pointed to the sector betting on work travel for its COVID-19 pandemic recovery. While it looks like their bet has paid off, travel and hospitality insiders should keep an eye on possible turbulence ahead. Business travel rebounds When travel restrictions and remote work grounded business travel, many wondered if it would ever return to previous levels. Last year, business travel was almost\u00a0two-thirds\u00a0of where it was before the pandemic. This year, 32 percent of people\u00a0plan to travel for work, compared to the 16 percent who planned to travel last year. Even the majority of remote workers plan on traveling for their jobs this year. So, what\u2019s driving the business travel revival? Surprisingly, smaller businesses reported more travel plans this year than larger companies. In a\u00a0Morgan Stanley\u00a0survey, two-thirds of companies with less than $1 billion in annual revenue expected to increase their travel budget this year. On the other hand, less than half of billion-dollar-plus businesses are expected to. Younger workers are also fueling business travel growth, as millennial and Gen Z employees are\u00a0more likely to travel for work\u00a0within the year. 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