We want to hear from you. Understand future pricing in air, hotel and ground transportation to build and budget your travel programRead the report. Travel remains an important business aspect for many companies today. Third, company policies on business travel: What distance-based policies should staff adhere to? This is particularly true when emergencies arise, like in cases of canceled flights. Their efforts are going beyond the obvious like virtual meetings or alternative travel modes, as we also see an increased interest in bleisure trips, combining business and leisure, to reduce their carbon footprint. Kathy Jackson, BCD Vice President, Executive Chair Sustainability. And since the technology decentralizes data and arranges it into permanent blocks, blockchain offers more security. One of the major changes to anticipate is the rise of a new type of corporate traveler. For instance, over 70% of millennial corporate travelers had stayed in a vacation rental during business trips (American Express, 2019). China, however, will continue to dominate the business travel market, with a projected annual business travel spend of $129 billion by 2022. The global business travel recovery that began in late 2020 slowed in 2021 to a lower rate than forecast due to COVID-19 variants, surges, "uneven vaccination rates and mounting supply chain challenges," the GBTA said. Technology has also moved beyond airports and train stations to make business travel easier. Leadership can play a prominent role in modeling how to travel in this new reality by clearly reiterating company policies. New countries are taking bigger shares of the market in business travel spending. Upcoming upgrades to 5G wireless internet may result in more mobile bookings in the future. This is according to the GBTAs annual business travel index, the BTI Outlook, which looks at both business travel spend as well as insights and traveller sentiment across 44 industries from 73 countries around the world. Keep it clean. Weve also included some business travel statistics so you can make data-driven decisions in your companys business practices. Travel suppliers can use these technologies to discover business travelers preferences and take advantage of upselling opportunities. For travel purpose, if in-person interactions remain critical for a company, then the more resilient such business trips are. Guterres: Humanity is one mistake away from nuclear annihilation. OTAs and GDS providers may be worth exploring as new data sources. Consider including Bleisure and Fexcation trips into your travel policy. External travel, on the other hand, refers to trips employees take for engagements outside the company, including in-person meetings with clients and suppliers, trade conferences, and customer sales calls. It helps for organizations to be extra proactive in communicating any type of change, whether regarding company-wide strategic policies or more granular details such as the companys preferred rideshare or car-rental options for corporate travel. When changes in operations are made, companies can take special care to ensure the availability of amenities. In this article, we identify four categories of business travelersthe never left, the never returning, the fear of missing out (FOMO), and the wait and see segmentsand provide recommendations for how key players in the corporate-travel ecosystem can make effective plans in this context. House Speaker Nancy Pelosi lands in Taiwan amid tensions with China, Major storm could throw 'wrench' into early Thanksgiving travel, CDC adds four countries to list of high-risk destinations for COVID-19, California gas prices reach record high for 2nd consecutive day. Subscribed to {PRACTICE_NAME} email alerts. Blockchains built-in security protocols make it the perfect technology for making travel as convenient and seamless as possible (Revfine, 2020). More travelers also stay further away from the city center, as comfort and proximity to leisure activities are prioritized. As recovery will likely be uneven, airlines will have to figure out how to have aircraft, pilots, and crew on standby so they can increase capacity quickly whenever theres a need. It seems there is a growing acceptance to live with COVID-19, a position many countries are now adopting and one that has seen travel gain momentum on the road to recovery. Most of these trips were part of the client-facing never left segment, which has returned to regular travel more quickly than other segments have. Your contact request has not been submitted. More employees are taking bleisure trips. Professional Services Automation Software - PSA, Project Portfolio Management Software - PPM, 10 Future Business Travel Trends & Predictions for 2022/2023 and Beyond, Business is almost always mixed with pleasure, Technology continues to revolutionize corporate travel, The rise of AI, virtual reality, and intelligent assistants, Blockchain: the future of business travel, Slower years for corporate travel and business tourism, they are considering resuming their corporate travel plans, stay productive even during long-haul flights, Asia has become the worlds largest business travel market. This way, you can accommodate traveller wellness and personal growth opportunities while supporting company objectives. Another important aspect of the business travel forecast is the fact that most employees now see corporate travel as a perk (TripActions, 2019). Suppliers could also consider offering radically transparent flexibility policies and allow customers a greater range of options with different associated fees for cancellations and changes. Second, the relevant data sources used to evaluate these factors: these could include public-health indicators, customer surveys, data from travel partners on industry trends and competitor behavior, and real-time pricing from GDSs consistent with typical corporate agreements, even as airline-fare classes go through realignments. Many more aspects will need to be considered but focussing on these key areas will definitely speed the return of business travel. Never miss an insight. Most security and risk management companies anticipate the shift in emphasis and are taking the first steps in the right direction. More are opting to stay in apartments and other accommodations that have a more homey feel. Thank you for your interest in CWT. As travel gradually ramps up, understanding both the company goals and the needs of a new traveller is a crucial task for travel managers. Despite new markets, China will continue to be the top business travel market in the next couple of years. Want to learn more about artificial intelligence? More than half of international business travelers plan to extend business trips to accommodate leisure activities at their destination. Travel suppliers and mobile network operators are working together to bring high-speed internet into the cabin. In addition, its worth noting that even within these segments, business-travel recovery will vary depending on the purpose and distance of the business trips (Exhibit 2). Here are some of the best online booking software that you can choose from: When was the last time you looked at your companys corporate travel policy? still hold, weve sharpened our understanding of how business leaders could be thinking about the postpandemic role of corporate travel. The rise of bleisure travel proves to be one of the most significant outcomes of the demographic shift in corporate travel, and this trend is expected to continue in the midst of COVID-19 vaccinations. Read our Global Privacy Policy and Notice | Cookies Policy |SiteMap | 2022 @CWT, Understand future pricing in air, hotel and ground transportation to build and budget your travel program. Theres a good chance that some of these policies need tweaking. India and Indonesia are becoming popular business travel destinations. The bulk of its internal travel was for the purposes of internal collaboration in 2019, a third of which is expected to be permanently eliminated, while the rest should gradually return over the rest of this year and 2022. Around 70 percent of executives said their companies will employ more temporary workers than before the pandemic, and 72 percent of executives report that their companies have started to adopt permanent remote-working arrangements for a subset of their employees. Aug. 2 (UPI) -- The threat the world currently faces has not been seen since the height of the Cold War, the head of the United Nations said. More corporate travelers are going rogue, i.e., not using employer-approved channels, during the booking process. Blockchain can also ensure that every bit of travel information is always accessible. Consequently, the tools and processes that travel managers have been using now apply in a much broader organisational context. The pace of recovery is crucial for large global airlines that are struggling to return to profitability as well as for hotel chains and restaurants that rely heavily on business travelers. The constant availability of information is crucial since the travel industry relies on the information exchange between companies. All Rights Reserved. The most significant change shaping our thinking about the return of corporate travel is the rising vaccination rates in the United States and Europe. Members of Generation Z are taking over the workplace, and predictions point to this age bracket making up around 40% of the workforce by 2021 (Connecteam, 2020). The United States has led the recovery this year, rebounding 27%, according to the GBTA. The profile mix varies from company to company, and its possible for all four to coexist within the same organization, although some might feature more prominently in some companies and less in others. In light of new developments, to what extent will videoconferencing replace business trips? Trip disruption technology (CWT, 2019) is also evolving to minimize the hassle caused by delayed flights and trains. Nearly 40 percent of the workforce in the United States has the potential to work from anywhere. For instance, travel agents pass customer information to hotels and airlines. Certain types of collaboration are more efficiently done face-to-face. Travel managers will need to define what constitutes necessary business travel to do this. We project that the United States and the United Kingdom will slowly transition toward normalcy in mid-2021, with the rest of the European Union following shortly after (Exhibit 1). Intermediaries can provide data that suggest which flights are more likely to stay on an airlines schedule, helping clients build more agility into their decision making. After all, millennials prefer self-booking when they travel so that they can find flights and accommodations that meet their preferences. Corporate travelers need a booking process that provides better availability and allows them to choose from more property and rate options. Employees, too, will go through an adjustment period as they resume their business trips. The White House announced Tuesday that Robert Fenton Jr., a regional administrator with Federal Emergency Management Agency, has been named the country's new monkeypox coordinator. Three indicators were used to define each archetype and determine its position on the spectrum: sector, travel purpose, and whether the trip was domestic or international. But the world has made an about-turn. Facial recognition and biometric technologies will also reduce waiting time for international travelers. Taiwan raising combat readiness for Chinese provocations over Pelosi visit, reports say, WNBA's Brittney Griner back in Russia court amid hopes for possible prisoner swap, Lyons Magnus voluntarily recalls nutritional drinks over potential contamination, Bipartisan senators introduce bill to guarantee abortion rights, House Speaker Nancy Pelosi lands in Taiwan over objections from China. Moreover, India will most likely be in the top 5 business travel markets by 2022. How can individuals use their influence for positive change? McKinsey_Website_Accessibility@mckinsey.com, reevaluating working and organizational arrangements, Travel, Logistics & Infrastructure Practice. This way, you can prepare for these changes and adjust your corporate travel policy accordingly, especially with COVID-19 still looming. If your employees are frequent travelers, it will be helpful to stay ahead of these business travel trends. Sign up for free newsletters and get more CNBC delivered to your inbox. If youre more concerned of your employees not doing enough business, though, time tracking software can help ensure sufficient productivity. Although 92% of organizations suspended business travel during the early months of the pandemic, pre-pandemic figures suggest that 90% of millennial business travelers added components of leisure to their affairs (National Geographic, 2020). Planning for the future can feel like flying through a fog of uncertainty, which makes it even more important for players to leverage real-time data to inform their decision making. Global business travel spending fell 54% to $661 billion in 2020 from $1.4 trillion 2019. Besides financial reasons, the pandemic has ravaged economies and not all countries have shown an adequate response to the continuing spread of the coronavirus. Aug. 1 (UPI) -- The United States on Monday announced it was shipping Ukraine an additional $550 million in weapons to aid the war-torn country in its fight against Russia. The coming years also pose many possibilities for intelligent assistants like Siri, Cortana, and Google Now. A report suggests that Asia has become the worlds largest business travel market (Hospitalitynet, 2019), even though the United States outpaces everyone in spending by a wide margin (WTTC, 2021). These technologies allow travelers to pick up their room key upon arriving at the hotel and head straight to their room.

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