10 Business Travel Takeaways: New Rules & AI Impact

The days of sleeping in airports are over.

Well, maybe not entirely. But your odds just got a lot better.

Last Wednesday, the US Department of Transportation (DOT) issued a new policy that requires airlines to provide "cash" refunds (card, usually) for just about anything that could go wrong with air travel.

Within the next six months, US airlines must adhere to the following:

1. Automatic Refunds for Delays:?Airlines are required to issue cash refunds for flights delayed more than 3 hours domestically and more than 6 hours internationally, without passengers needing to request them.
2. Mishandled Baggage Compensation:?If your checked bag isn't delivered within 12 hours (domestic) or 15-30 hours (international), you'll get a refund of your checked bag fee.
3. Partial Refunds for Missing Amenities:?You're entitled to a partial cash refund if you paid extra for in-flight services (WiFi, seat selection, entertainment) that aren't provided.

Passengers around the nation are rejoicing, but business travelers arguably have the most to gain as 2 in 3 buyers expect their company's travel spend to increase in 2024 compared to 2023.

As such, the policy change paints a bright picture for frequent flyers, with some unavoidable challenges and interesting possibilities ahead.

Here are the top 10 things you should know about the future of business travel:

?? Cash Refunds Are King (and Queen)

• Bye-Bye Vouchers! If your flight is cancelled or delayed (>3hr domestic; >6hr international), airlines are now required to automatically issue refunds without passengers having to request one. And they have to do it within seven business days for credit card purchases. Bottom line: you and/or your company will get real cash back.
• Financial Boost for Companies: Businesses will have greater budget control and potentially lower overall travel costs thanks to automated refunds. Plus, teams can rest easy knowing there aren't any expiring vouchers on the horizon.
• Happier Employees, Less Downtime: Faster access to cash refunds allows companies to rebook flights quickly, minimizing employee disruptions and downtime. Employers may also grant their teams the option to pay out-of-pocket or use a company card to rebook flights, knowing they won't be double-charged for the same trip.

?? A Busier Travel Industry?

• More Business Travel? Easier travel could lead to a boost in business for the travel and hospitality sectors. In fact, 6 in 10 business travel buyers expect their teams to take more trips in 2024 compared to 2023, while only 11% predict fewer trips for their employees.
• Focus on Sales & Events: As companies continue seeking cost-cutting measures, business travel will likely be prioritized for revenue-generating teams and events like sales meetings, conferences, and team offsites.

?? AI: The Potential Game Changer

• AI for Customer Communications: Thanks to a small team and their friendly neighborhood AI-bot, United Airlines started proactively messaging passengers with a "story" about their delays. Although the circumstances behind such annoyances rarely change, transparency builds trust. Plus, context can mean the difference between a stop at the lounge, or a 30-minute half-squat at the gate.
• AI Helps Airlines Minimize Cancellations: AI is already helping airlines optimize scheduling and predict disruptions by analyzing historical data and weather patterns. The tech is far from perfect, but since 3 out of every 4 delays are weather-related, airlines (and the US Military) have starting investing in tools to improve reliability and safety in air travel.

?? Challenges Remain and Tensions Build

• Rising Travel Costs: According to the GBTA | Global Business Travel Association : "Industry stakeholders report their top 2024 concerns include the rising cost of travel (66%), overall economic concerns (46%), company budgets not keeping pace (42%), travel disruptions (32%) and geo-political concerns (22%)."
• Travel Talent Overflow: Pick an issue, any issue. It's no secret air travel is rising to new stress levels, so it doesn't help that airlines have slowed or stopped hiring altogether. But who can blame them after Boeing essentially shrugged in response to complaints about delayed orders?

?? The Future of Travel Programs

• Adapting to Hybrid Work: Many companies are revising travel programs to accommodate a hybrid work model. Leaders have realized the importance of considering meeting types, travel frequency, and remote employee reimbursements in their day-to-day operations. As financial flexibility enters the picture, it's not unlikely that teams will see shifts in where, when, or how they come together.

Overall, the new DOT regulations and the rise of AI promise a more positive and efficient experience for business and leisure travelers alike.

However, airlines are already fighting back against the new law. Will passengers pay the (literal) price in added taxes and fees to offset the soon-to-be breached dam of refunds?

For now, it's simply a finger-pointing game between the airlines, DOT, and FAA.

Fasten your seatbelts, folks. It's gonna be an interesting ride.

Travel like the sky was made for you. Follow Sam for tips on business and leisure travel, budgeting, and reward redemption.