Three topics that will shape future business travel

What unusual and challenging times we live in! In the past 18 months, the world as we used to know it has been truly turned upside down. We have witnessed several lockdowns and gotten used to social distancing, working remotely, and virtual meetings. Thankfully, things are starting to turn around. With vaccinations picking up speed globally, we are regaining some freedoms in both our personal and professional lives, including the opportunity to travel. 

The big question is of course how business travel will look in the future, during and after the pandemic. As organizations have invested heavily into tools for virtual communication and many are looking to save costs in the future, there are several critical voices that say the return of business travel will progress very slowly or perhaps never return to pre-Covid levels. However, the feedback we received from international top-level managers in a recent survey gives reason for optimism: 80% state that personal meetings with customers and suppliers are indispensable for their business – just as many as before the pandemic. So yes, business travel is here to stay, but the way we travel will be different and, in many regards, already is. 

1.   Duty of care is here to stay

Without a doubt, duty of care is the top priority amid the pandemic. Organizations that don’t take this topic seriously not only jeopardize their employees’ health, but also risk upsetting or losing them in the long run, with a considerable number of business travelers threatening to reduce business trips or even look for another job. 72% of companies we surveyed have changed their travel policy due to Covid and will maintain these changes for the future.

By providing face masks and self-test kits, setting up rules regarding travel destinations, illness and return transportation, informing employees on quarantine procedures and entry regulations, and restricting methods of transportation, travel managers are taking action to protect their travelers. Of course, the list doesn’t end there. Providing safe accommodation is another key task. Luckily, hotels and event locations have adapted to the situation by offering high hygiene standards and protocols, on-site testing, bigger rooms and outdoor locations, as well as flexible pricing models and booking. But it is not only travel management that must adjust. Accounting and procurement also need to take action, for example, by tracking cancelled air tickets and making sure credits and vouchers are used before they expire.

2.   Digital solutions will make travelling safer and more convenient

Duty of care is not the only topic Covid has put front and center. According to McKinsey, digitalization has made a three-year leap forward compared to pre-crisis forecasts. The best example is with contactless payment and check-in. This mega trend became popular due to hygiene but will remain because consumers have learned how easy and convenient it is. Needless to say, digital solutions are another key method for ensuring travelers feel safe and generally improving their travelling experience – from apps that deliver updates on travel regulations and flight changes to contactless payment solutions and virtual wallets. And corporates recognize the importance: almost half of the top-level managers we spoke to already have or will introduce new payment methods, with more than one third currently gathering more information about the topic.

Coming back to the question on whether virtual tools will partly replace business travel, some economists argue exactly the opposite. According to them, these tools will help companies to become even more globally oriented, both in terms of their own structure and their customer and supplier relationships. At the same time, it’s becoming significantly cheaper and easier for small companies to operate globally. Virtualization thus reinforces globalization, which brings about additional travel needs.

3.   CSR and sustainability: time for action

A topic that was somewhat pushed aside by Covid but is currently returning to the spotlight is Corporate Social Responsibility (CSR), and in particular sustainability. Through the Paris Agreement, EU countries have until 2030 to reduce emissions by 55%. Consequently, companies should be looking at every option they can to contribute to this goal, including building a more sustainable business travel policy.

Almost three quarters of top managers surveyed told us that green issues are very important for their business and have a noticeable influence on their business behavior. We can confirm that we are currently receiving a high number of inquiries on the topic as business travel is picking up speed. Informing employees on the topic and generating awareness on all hierarchy levels is the first step to making business travel more environmentally friendly. It is essential to have the ability to track, analyze and report on the company’s carbon footprint. The options to improve this footprint are countless, from carbon compensation projects to choosing eco-friendly accommodation and transportation, including airlines with a modern and fuel-efficient fleet. 

Looking forward

Travel managers at many companies have spent these past months where business travel has been close to impossible building and implementing strategies around these three focus areas. For those that have not, it is still not too late to start.

It is difficult to predict exactly how long we will have to deal with this pandemic and the restrictions that come with it. But the bottom line to me is that despite all the digital tools we have established, not every business meeting and interaction can or should be handled virtually. As soon as the restrictions are loosened, we will be out and about to catch up on personal meetings that have not been possible for what feels like forever. This is already starting to happen. Let’s make sure that the way we travel now and in the future is as safe, convenient and sustainable as possible.