Biz travel booms back
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Business travel spending may reach or even top pre-pandemic levels by the end of the year, a new report finds.
Why it matters: Leisure travel bounced back almost immediately after the worst of the COVID-19 pandemic. But business travel — a hugely important revenue source for airlines, hotels and so on — has taken longer to rebound as Zoom replaced some handshake meetings.
Driving the news: Nearly 3 in 4 corporate travel managers expect their company's business trip spending to grow this year, while 58% expect growth in 2025, per a new Deloitte study.
- Those managers predict around 15% spending growth in each year.
Friction point: At least some of that increased spending is being driven by higher travel prices.
- Half of travel managers are pushing or requiring workers to book cheaper flights to save money, Deloitte found, while 38% are doing the same for hotels.
Yes, but: Trip frequency is also up, with 20% of business travelers expecting to take 6-10 trips this year, compared to 15% in 2023.
Zoom in: Broadly speaking, business travelers say they're taking fewer trips to meet with clients or prospective clients about projects.
- Instead, conferences and trade shows are a big draw, with more than 6 in 10 business travelers planning to attend at least one this year, the report finds.
The intrigue: Business trips aren't always just business trips.
- Business travelers love tacking on some personal time while they're away for work, with two-thirds saying they extended a business trip for leisure at least once last year, and 1 in 7 saying they did so at least three times.
- And the vast majority — 83% — of business travelers say their trips are "enjoyable," compared to 3% who dislike them.
Between the lines: The biz travel life ain't all rosy.
- 55% of corporate jet-setters griped about general fatigue, 41% about time away from their family or significant others, and 39% about the ever-increasing stack of work looming back at their desk.
What they did: Deloitte's report is based on two surveys: one of 104 U.S. corporate travel managers conducted between May 16-28, and another of 1,389 business travelers conducted between May 28-June 3.
What they're saying: "More employees are traveling for business — and enjoying it — underscoring that in-person connection often remains a critical component," Deloitte vice chair Eileen Crowley said in a statement accompanying the report.
- "As companies see a renewed benefit in the opportunities business travel provides, business leaders can capitalize on the enthusiasm and prioritize travel experiences that are valuable to both the organization and employee."
The bottom line: See you at the trade shows.
