• New Report: CEOs Say Reducing Business Travel Will Lead to Long-Term Financial Losses

     
    POSTED July 15, 2022
     

Over half of large-company CEOs agree that slashing business travel may represent short-term savings but will hurt revenue over the long term.

That’s one of the key findings from a new survey that is part of the Quarterly Business Travel Tracker, a collaboration between U.S Travel Association, J.D. Power and Tourism Economics.

Despite agreement that reducing business travel will be harmful to long-term sales, more than two-thirds of executives expect their company will spend less on business travel over the next six months compared to the same period in 2019. Further, half of companies still have policies in place restricting business travel.

Here's a closer look at the survey’s findings:

  • Business travelers expect to resume traveling at a slightly reduced frequency as compared to pre-pandemic, averaging about 2.1 trips per month (compared to 2.3 pre-pandemic, a decrease of 7.2%). The average number of expected trips for each purpose is slightly below pre-pandemic levels. 
  • More than two-thirds of corporate executives expect the company they work for will spend less on business travel over the next six months compared to the same period in 2019. This is true across all trip purposes. 
  • Half of executives have policies in place restricting business travel as a result of pandemic. Most frequently mentioned policy restrictions include fewer business trips overall (71%) and fewer employees sent per business trip (58%). More than half (52%) anticipate existing pandemic related business travel polices will be reevaluated sometime in 2022. 
  • Both business travelers and executives report negative impacts related to reduced business travel. Executives appear particularly focused on the expectation that reduced business travel may represent short-term savings but bring long- term reductions in sales (46%). Many business travelers and executives see reduced business travel as negatively impacting their company's financial performance, at 32% and 36%, respectively
  • Approximately one-in-five business travelers report they are unsure they will make a trip for purposes such as a customer meeting or trade show over the next six months. The most frequently cited reasons were video conference substitutes for business travel, restrictions on international travel, company cost constraints, and companies restricting employee business travel
  • Executives consider business travel essential (73%), but report that virtual meetings (75%), cost controls (69%) and remote work by customers (69%) are likely to continue to constrain business travel. Most executive respondents (58%) agree that having more remote employees in the organization they work for will increase business travel spending for internal meetings over the long-term. 
  • Developing customer relationships is critical. A majority of business travelers report developing relationships through meetings with external customers and at trade shows are a critical aspect of business trips. A quarter of business travelers report building awareness of their organization's offerings through business trips is critical to their job performance. 
  • Business travelers at smaller-sized companies are more likely to be 100% remote (34%) than at a larger-sized company (29%). Business travelers working primarily in an office (36%) are more uncertain about the frequency of business travel over the next six months. 

U.S. Travel is launching a social media campaign to encourage companies to prioritize a return to normal business travel operations. 

We’re well past the halfway mark when it comes to business travel returning to pre-pandemic levels and the recovery will continue to gain strength in 2023. Those are the findings from a recent survey by the Global Business Travel Association (GBTA), a leading organization serving the business travel industry. 

 

The numbers are in for the 11th edition of IMEX America held Oct. 10-13 at Mandalay Bay, Las Vegas. While last year’s show was a reunion of sorts for the meetings and events industry, this year it was a business-fueled gathering. 

About 12,000 people participated in IMEX America, including over 4,000 buyers. The 2022 show was 45% bigger than last year, due to an easing of travel restrictions along with 40% of returning exhibitors signing up for more booth space. 

 

Cambria Hotels—an upscale brand franchised by Choice Hotels International Inc.—introduced the Cambria Hotels Threads Collection, a new product offering that further elevates the brand’s commitment to creating a sense of place in each Cambria hotel. Leveraging the creativity of community artists from across the country, the first edition of the Threads Collection features three exclusively designed pairs of socks inspired by the surroundings of Cambria hotels in New England, South Carolina, and Arizona.