Travel spending by US companies is expected to reach or even surpass pre-pandemic levels by the end of 2024. Photo Credit: Adobe Stock/Song_about_summer
Corporate travel seems to be approaching post-pandemic stabilisation,
with US-based companies’ travel spending expected to reach or even
surpass pre-pandemic levels by the end of 2024, according to a recent
survey conducted by Deloitte.
Events and exhibitions drive corporate travel
Trip frequency per traveller has also increased compared to last
year, with 20% of travellers expecting to take six to 10 trips in 2024
and 10% expecting to take over 10 trips.
83% of those surveyed also shared that they consider business travel
to have both personal and professional value, describing it as
“enjoyable”, with 51% placing networking opportunities among the top
benefits of business travel.
Events and exhibitions are also playing a part in corporate travel
growth, with 63% of business travellers expecting to attend at least one
conference in 2024, and 20% of frequent travellers surveyed sharing
that they travelled once a month or more in the first half of 2024 for
client project work or sales and client relationship building.
Cost and sustainability still major concerns
However, higher costs for airfare and lodging are likely to have an
impact on travel volume, with 22% of travel managers surveyed sharing
that high prices are the biggest drag on trip volume for their companies
and half of travel managers surveyed reporting that their companies are
encouraging or mandating lower-cost flights.
Sustainable travel also remains top priority, with more than half of
surveyed travel managers saying they need to cut trips by 10-20% to meet
2030 sustainability goals. Meanwhile, more travel managers surveyed
report their companies have moved toward adoption of travel-related
sustainability measures, encouraging and enabling employees to make
greener travel choices.
Overall, companies are more prepared and active in their approach to
sustainable travel this year: 46% say they have a strategy in place to
assign travel emission budgets to teams and individuals, up from 30% in
2023.
“Travel buyers and suppliers should work together to navigate these
shifting dynamics,” said Kate Ferrara, vice chair, Deloitte LLP, and
U.S. transportation, hospitality and services non-attest leader. “As
companies manage pricing pressures, suppliers who lean into flexibility
to help companies meet employee expectations can build loyalty and be
well-positioned for the road ahead.”