The Future Of Corporate Travel and What That Means for Agents

Looking at the future of corporate travel is complicated. The statistics used to determine where we are headed do not paint a clear picture, leading some to predict that it won’t return to normal until 2024 and beyond, while others feel it already has returned to or exceeded 2019 levels.?

If you are an agent or agency who helps to plan corporate travel, it is sure to be frustrating. How can you possibly know when things will be back to business as usual when no one else seems to really know themselves??

After digging into some of the research, we have realized that the question may not be about when corporate travel will return to 2019 levels or above. Rather, we feel it is important to focus on how corporate travel is changing, and what you can do as a travel agent to stay ahead of the trends and improve your income potential.?

What the polls say?

To start with, let’s examine some polls and statistics. But before we dig in, it is important to note that many of the polls and statistics that are available are from the early days of the pandemic or before. Using these to predict the future of corporate travel is challenging.?

This is mainly because a majority of businesses have changed to a more remote-heavy work model. There are many reasons this has an effect on the future of corporate travel, and we will dig into those reasons some more later. But it is important to keep that top of mind as you review recent statistics.?

When looking at polls, travel managers tend to be more optimistic. In fact, poll results from the Global Business Travel Association (GBTA) reveal that most travel managers expect more business travel in 2023 than in 2022. And a poll conducted by Morgan Stanley Research found that many of the surveyed travel managers believed that their company’s travel expenditures were already back to pre-pandemic levels by the end of 2022.?

Other data sources say we’re not quite there yet. An article from Skift states:?

“Amex GBT said global airline capacity in 2023 was expected to recover to 92 percent of 2019 levels.”?

While that’s still pretty close to 100%, it’s less than the "equal to or higher" amounts that travel managers claim their companies are spending.?

So where is the difference coming from??

Corporate Travel has changed...a lot?

We think one of the biggest reasons for varying statistics and predictions around corporate travel centers on how much things have changed in the past few years. The line between corporate travel and leisure travel has blurred so much that it can be difficult to really know where one ends and the other begins.?

The increase in remote work opportunities has contributed to that. But the pandemic in general and improvements to technology have also changed the way employees approach business travel.?

For one, airline schedules have changed. There are less frequent flights and the timing of the flights that are available isn’t always as conducive to a hop-on, hop-off business trip as before. That means that business travelers may have to extend their trips where they wouldn’t have done so before.?

Improved wi-fi access and the increase in remote working environments mean that isn't such a bad thing, though. A traveler can get to the airport early, get some work done, work on the plane, and then easily complete the tasks they have traveled for, with time to spare. ?

Thus, a trip that would previously have been a quick day trip where an employee returned home in time for dinner, may now be an overnight trip with time to pop in and see a local sight or visit an old friend. But when it comes to spending and statistics, where does a trip like this fit in??

Bleisure vs Workcation vs Lisness ?

As the lines between leisure and corporate travel have blurred, the names we use to describe these trips have increased. But that is because there are different ways that people are using remote work opportunities to travel and explore the world while maintaining a reasonable work/life balance.?

Sometimes these terms are used interchangeably, but there are a few small differences.?

Bleisure, a common term from before the pandemic, refers to a trip that is paid for by the company and is primarily a business trip. During this trip, an employee might take a little time to engage in some leisure activities as well, such as a quick visit to a local museum after the day’s work has been completed.?

A workcation tends to refer to a remote worker who sets up shop in a different location, such as an Airbnb or hotel that they pay for with their own funds. When they finish work for the day, they spend their free time exploring the new location.?

A lisness trip, which is a newer term, is more vacation and leisure-focused. An employee might extend their four-day weekend by working for half a day on Tuesday and Wednesday, with a return home on Thursday. Their total trip would last for a week, but they may only take one or two vacation days to do it and the focus would be on relaxing. ?

The key takeaway here is that corporate travel needs to be more flexible. It is also harder to define what constitutes corporate travel and what is strictly leisure, as the lines are blurred.?

The rise of corporate retreats and off-site get-togethers?

Not only has the line between corporate travel and leisure travel been blurred, but business travel itself has changed. Previously, you might have only seen higher-level employees traveling on a regular basis to different company locations. Now, however, it isn't uncommon to see remote teams with employees of all levels traveling a few times a year to gain the benefits of meeting in person.?

These multi-day opportunities are often in locations that are appealing to explore after hours. Sometimes employees want to bring the family along, and they want to stay in apartments or rental homes instead of hotels. Others may want to extend their trip by a few days, offering to pay for the extension to their visit.?

What this means for corporate travel agents?

As a corporate travel agent, remembering that flexibility is key to all business trips for 2023 and possibly beyond will help you to improve your offerings to your clients. Knowing some of their pain points around the changes their employees are requesting or demanding can go a long way towards differentiating you from the competition.?

One of the biggest challenges that you could potentially solve as a travel agent is that people want unique places to stay, but businesses are hesitant to book a location that may not meet cleanliness or safety standards. Hotels are scrambling to improve their offerings for travelers who are extending their trips, but the appeal of a unique, longer-term rental is hard to overcome.?

As an agent, being able to offer more unique apartments and condos that have been vetted as safe and clean could put you a step above your competition. No employer wants to send their employee to stay in a place that is infested with bugs or snakes, after all.?

At the end of the day, people are still traveling for work, but it looks different.?Does this mean that business travel as a category is going away? Will the definition of business travel change??

Only time will tell. Meanwhile, agents who are flexible and able to offer ways for businesses to meet the demands of employees while also staying within compliance will be a head above the rest in their business.?

Much of the research for this article came from a great panel discussion hosted by Skift. You can register and view it here.?

P.S. At GRNconnect, we have a large selection of apartments and hotels that meet our high standards, making it easier for agents like you to find the perfect place for your clients. If you haven't already, you can register for free today to learn more.

Join the Conversation

Here is this week's collection of interesting posts from LinkedIn members about travel and the travel industry.

Tobias Ragge is talking about how corporate travel is changing too, with a focus on hoteliers.

Johnny Thorsen shares how Lufthansa Group Business Services is going beyond the minimum expectation level when it comes to sustainable travel. The program is limited for now, but will hopefully expand.

Faida Amin is talking about biometric facial recognition technology being used for airline check-in.

Rafat Ali shares his belief that Egypt and Morocco are going to be hot tourist spots this year, backed up by anecdotal evidence.

Geraldine Ree is talking about how taking your time with your marketing efforts can pay off in the long run.

Thanks for joining us for this week's edition of The GRN Newsletter. Did you learn anything new? Don't forget to like, share, and comment on this post as well as the posts shared above. See you in two weeks!