Growing tension in business travel as companies cut back on cost

Tension is growing between business travellers, travel managers, and company leadership amid the current economic environment, finds the sixth edition of the SAP Concur Global Business Travel Survey.

“Balance between flexibility and cost is delicate, not to mention pressures from new distribution channels and ongoing geopolitical issues,” said Charlie Sultan, president of Concur Travel at SAP Concur. “This year’s report demonstrates the need for a mutual understanding of these realities and compromise in corporate travel programs.”

Over 3,700 business travellers in 24 markets were surveyed, with 67% of the surveyed said that business travel was critical for career advancement. However, opportunities for such travel remain scarce – just as many surveyed shared that they had not had the same opportunity to take business trips as compared to their co-workers.

Reasons cited for this lack of opportunity ran the gamut from company seniority and age to physical appearance, gender and sexual orientation. However, safety trumps opportunity to travel – 44% of business travellers shared that they would choose to decline business trips due to safety concerns, and 33% said they would turn down an opportunity to travel due to safety concerns around the mode of transportation required.

Business travel costs on chopping block

Business travellers and travel managers surveyed have said they struggle to exercise flexibility as company leadership cuts back on business travel costs.

Despite business travellers saying their company is focused on their needs for flexibility, 91% have seen their company cut back on allowing options such as blended travel. Employees have seen cutbacks in allowing remote work while travelling for pleasure to avoid taking leave days (27%) or adding personal travel to a business trip (25%).

This has had a strong effect on business travel, with one in five saying they are willing to decline a business trip that does not allow them to extend it for personal travel.

Companies have also cut back on comfort-focused requests, such as staying overnight to avoid a long day of travel for a day trip (28%), paying more to get a non-stop flight or direct route (28%), using business or premium class (27%), or using options like taxis or ride-share apps rather than public transportation (27%).

Trips declined due to travel disruption

The majority of global business travellers have been significantly impacted by travel disruptions over the past year, with 88% forced to take unanticipated steps because of unexpected delays, cancellations or the need to reroute, according to the report.

These changes have made life difficult for travel managers, with 42% of 600 surveyed saying that they foresee company directives to cut travel costs will pose a challenge.

This concern may prove valid, as over a third of business travellers (36%) say they’ve incurred additional expenses on a business trip because of unexpected travel challenges, and a similar percentage (34%) have had to use an alternate transportation method. More than one in four (30%) have booked travel directly with suppliers because of unexpected travel challenges.