business travel trends in 2023

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Dec 21, 2022

2023 Outlook: Business Travel Bounces Back

Corporate travel budgets are recovering to pre-covid levels, our new survey finds. see where companies are spending in the year ahead..

After grinding to a near halt during the COVID-19 pandemic, business trips—and profits for hotels and airlines catering to higher-paying corporate clients—are bouncing back even beyond pre-pandemic levels, per a recent survey from Morgan Stanley Research.

Despite higher airfares and room rates, the survey of 100 global corporate travel managers found that many respondents believe their company's travel expenditures are already back to pre-pandemic levels and will continue to grow. The biggest demand is coming from small companies, which means lower-cost airlines may benefit the more than their bigger peers.

“Travel budgets are expected to see a noticeable improvement in 2022, with 2023 nearly back to ‘normal,’” says Ravi Shanker, an equity analyst covering North American transportation. “Most interesting is that nearly half of the respondents expect 2023 budgets to increase versus 2019 overall. And of those that expect an increase in budgets, the majority believe 2023 budgets will be between 6% to 10% higher than 2019.”

Overall travel budgets show an improvement over previous surveys, with 2023 budgets expected to be 98% of 2019 levels on average.

Survey Highlights

Smaller companies lead demand for corporate travel. More than two-thirds (68%) of companies with under $1 billion in annual revenue expect travel budgets to increase next year, versus just 41% of companies with annual revenues over $16 billion. Similarly, 32% of smaller companies said travel budgets had returned to pre-pandemic levels compared with 23% of big firms. “This trend could likely favor low-cost carriers, as smaller enterprises tend to be more localized and require less long-haul travel,” says Shanker. “However, the legacy carriers with strong corporate exposure should see gains as well.”

Nearly a quarter of both large and small companies say their firms are already back to pre-COVID travel levels, and 34% anticipate a full recovery by the end of 2023.

ESG Rate of Change

Holiday budgets hit by inflation, seeing a peak for food prices.

Airfares are higher, but that’s not a drag on bookings. On average, corporate airfares are expected to be about 9% higher than pre-pandemic prices. “Clearly the expected increase in corporate airfares is not having a major impact on corporate travel as passenger volume is expected to be basically flat versus 2019,” says Shanker.
Room rates will continue to rise, though not as fast as they have recently. As of this October, market room rates had spiked 20% to 25% over 2019. Next year they will rise even more, though by an average of just 8%, say respondents (9% in the U.S. and U.K.; 5% to 6% in Latin America, Asia and Africa).
Hotels face economic and competitive headwinds. While overall travel budgets are growing, companies are cutting costs by trading down when it comes to accommodations. (Historically, budget hotels outperform upscale lodging in tough economic times.) Alternative sources of accommodation also threaten traditional hotels, with 31% of respondents saying they intend to use short-term rental services in the next year.
Virtual meetings aren’t going away. Almost 18% of corporate travel will be replaced with virtual meetings, falling slightly to 17% in 2024, suggesting a degree of permanence in the shift with companies recognizing the benefits of virtual meetings ranging from cost savings to lower carbon footprints. Expect companies providing collaboration software to gain from this shift.

For more Morgan Stanley Research insights and analysis on global travel, ask your Morgan Stanley representative or Financial Advisor for the full reports, “Global Corporate Travel Survey: Snapping Back" (Nov. 8, 2022) and “Global Corporate Travel Survey: 2023 Travel Budgets Nearly Back to 2019 Levels, but ~20% of Meetings Could Still Shift to Virtual” (Nov. 8. 2022). Morgan Stanley Research clients can access the reports directly here and here . Plus more Ideas from Morgan Stanley’s thought leaders.

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Business travel survives the Zoom era, as leaders jump back on flights

Corporate travel is slowly but surely making a comeback.

It turns out that jet-setting on the company dime has eternal appeal. Business trips can conjure up images of fancy first-class tickets to major cities or staying at a Hilton in a small town about 20 minutes from the airport. Either way, it seems that the pandemic didn’t kill the corporate travel bug.

The brakes on business trips were first pulled when COVID-19 hit, as lockdowns and international travel restrictions were implemented. Zoom took off while planes stalled, as the video-conferencing company went from 10 million daily meeting participants in December 2019 to 300 million a few months later in April 2020.

As the lockdown lifted, some itched to vacation again (surging to the point that the term “revenge travel” was coined), but corporate travel was slow to get its feet off the ground. Its sluggish return made some question if business trips were at the end of an era. Perhaps Zoom and remote work meant that there was no longer a need to leave the house, much less the country, to really connect with others.

“Businesses aren’t going to support nonessential travel if the work being proposed can be done virtually,” Brian Bloom, Korn Ferry’s vice president of global benefits and mobility operations, said in 2021 . And while bosses were looking to cut costs by eliminating travel, workers weren’t looking to risk their health either. In 2021, only one-quarter of those over 55 were comfortable traveling for work even after being vaccinated, according to an IBM survey of 15,000 global participants.

But years later, it seems as if corporate demand hasn’t died off, it just was dozing off for a bit. And the airlines confirmed as much. Alaska Air reported a return to pre-pandemic levels of business travel, as sales for corporate accounts soared by 22% in the first quarter. Delta and United each reported 14% increases in first-quarter revenue, with a United executive noting that the company notched nine of its top 10 corporate booking days in its history this year. That’s coming off of the rebound in 2023 , as air travel rose to 94% of 2019 levels, according to the International Air Transport Association.

Of course, that doesn’t mean that business travel isn’t still going through growing pains . A 2023 report from Deloitte found that while recovery is occurring, the trend “likely faces a limited upside” in part due to the cost of flying and sustainability mandates.

Still, the return of corporate travel is occurring in the background of a years-long campaign to go back to pre-pandemic ways of work, as big names in tech and finance push for a fully in-person week. One of the major talking points for those that suggested back to office work was that it would create better connections , a similar talking point that crops up when it comes to the merits of traveling to meet with clients in-person.

It seems as if the mindset is slowly gaining traction, as a 2023 study from Global Business Travel Association projected spending on business travel will surpass pre-pandemic levels of $1.4 trillion this year and balloon to nearly $1.8 trillion by 2027. After Omicron and other surges, global business travel began to find its footing again in 2022, according to the trade group.

“The headwinds that were anticipated to impact the rebound of global business travel over the past year didn’t materialize and that is good news,” Suzanne Neufang, Global Business Travel Associate’s CEO said in a statement last year to Fortune’s Chris Morris. “This latest forecast now indicates an accelerated return to pre-pandemic spending levels sooner than anticipated as well as growth ahead in the coming years.”

As the ever-looming recession remains unannounced and executives continue to extol the benefits of in-person work, the company card has started to thaw. It appears as if the floodgates, or air gates, are beginning to open up again.

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January 12, 2023

Featured Guest

Tony Capuano CEO, Marriott International, Inc.

Chip Rogers President & CEO, American Hotel & Lodging Association (AHLA)

As COVID-19 restrictions have continued to ease, the travel and hospitality industries have seen a resurgence in customers. Companies like Marriott have seen percentage increases in revenue and rate, even topping pre-pandemic levels.

During the U.S. Chamber of Commerce’s 2023 State of American Business event, Chip Rogers, President and CEO of the American Hotel and Lodging Association , and Tony Capuano, CEO of Marriott International, Inc. , sat down for a fireside chat. Read on for their insights on the post-COVID state of the travel industry, a shifting customer base, and the outlook for 2023 and beyond.

2022 Demonstrated the Power and Resilience of Travel

After declines amid the pandemic, 2022 brought about a positive recovery for the travel industry.

“[2022] reminded us of the power and resilience of travel,” said Capuano. “If you look at the forward bookings through the holiday season, [you’ll see] really strong and compelling numbers … so we’re really encouraged.”

“The only caveat I would give you about that optimism is, as you know, the booking windows are much shorter than we’ve seen them in a pre-pandemic world,” he added. “So those trends can change more quickly than we’re accustomed to."

The ‘Regular’ Customer Segments Are Shifting

At the start of pandemic recovery, industry leaders believed leisure travel would lead travel recovery, with business travel closely behind and group travel at a distant third, according to Capuano. While some of those predictions have held, others have shifted.

“Leisure [travel] continues to be exceedingly strong, and group [travel] has surprised to the upside,” he explained. “Business travel is perhaps the tortoise in this ‘Tortoise and the Hare,’ slow-and-steady recovery.”

However, Capuano noted customer segments are becoming less and less strictly defined.

“[There’s] this trend we've seen emerge over the pandemic of blended trip purpose … [where] more and more folks are combining leisure and business travel,” he said. “If this has staying power, I think it’s absolutely a game changer, as we get back to normal business travel and hopefully maintain that leisure travel.”

To accommodate this shifting demand, Marriott has focused on expanding offerings to accommodate both the business and leisure sides of travelers’ trips.

“[We’ve had] a very big focus on [expanding bandwidth], so that if [we’ve] got 300 rooms full of guests on Zoom calls simultaneously, we’ve got the bandwidth to cover it,” Capuano added. “[We’re also] being more thoughtful about fitness, leisure, and food and beverage offerings — and having the flexibility to pivot those offerings as somebody sheds their business suit on Thursday and changes into shorts and flip flops for the weekend.”

2023 Offers Hope for Continued Growth in the Travel and Hospitality Sectors

As the travel and hospitality sectors continue to grow and shift in the post-pandemic era, Capuano shared reasons for optimism in 2023.

“Number one, it's our people,” he emphasized. “When you see their passion, their enthusiasm, their resilience, their creativity, and just how joyful they are to have their hotels full again … it's hard not to be filled with optimism.”

“If you look at how far the industry has come over the last few years,” Capuano continued, “any lingering doubts folks may have had about the resilience of travel — and about the passion that the general public has to explore cities and countries — it's hard not to be excited about the future of our industry.”

Post-Pandemic Work

From the Series

State of American Business

View this online

Business Travel Trends in 2023

While doing business face-to-face is bouncing back after the pandemic, the corporate travel industry is still very much in recovery. Here’s what to expect from business travel trends in 2023.

>> Related: Corporate Travel Trends from Our Survey with Skift <<

A line graph depicts Business Travel Trends in 2023.

Source: Bloomberg Law

While there is no longer a shortage of travelers, there are new challenges:

87% of hotels have persistent staff shortages ( source )
The United States has a deficit of about 8,000 pilots, or 11% of the total workforce ( source )
TSA is in a hiring crisis amid stagnant wages ( source )
Airfares are rising 5x faster than the overall inflation rate ( source )
Hotel rates are up 19%

The net impact on business travelers? One in four flights have been delayed in 2023, and travel is costing ~30% more per trip.

The Definitive Guide to Post-Pandemic Business Travel and Expenses

Higher travel costs and unreliable flights will strain businesses in 2023

Unfortunately inflation, staffing shortages, and uncertain flights will affect not just the traveling employee, but also their manager and the finance department.

Business travelers should:

Plan for long check-in and security lines at the airport, even with TSA pre check.
Prepare for flights to sell out quickly. Book as soon as you can.
Expect flights to be delayed – be conservative with your itinerary, and don’t schedule optimistic meetings or airport transfers.
Prepare to rebook canceled flights. Save your company’s travel agency number in your phone so you don’t have to wait in line with hundreds of other stranded passengers.

>>Related: The New Era of Corporate T&E <<

Managers should:

Prepare to manually field far more policy-exceptions for expensive flights.
Triage travel or re-allocate budgets – with each trip costing ~30% more, you’ll exhaust travel and expense budgets faster.

Finance departments should:

Urgently update travel policies, pricing limits, and per diems to reflect 2023 pricing.
Create dynamic policy parameters that aren’t capped at arbitrary or outdated prices.
Partner with travel agencies that have seasoned agents available 24/7 to rebook canceled flights.
Explore incentives and reward employees who book under budget . On average, we see businesses trim 30% of their travel budget after implementing rewards.

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Home » Features » Six business travel trends in 2023

Six business travel trends in 2023

January 16, 2023

[Credit: Rob Wilson on Unsplash]

[SPONSORED CONTENT] Cvent highlights some key findings from its latest Travel Manager Report and how venues can best capture demand in 2023.

Corporate travel is, apparently, back! According to the new Cvent Travel Manager Report: Europe Edition December 2022 , corporate travel managers seek value, sustainability, and cost-cutting opportunities in 2023.

The challenge for hotel teams is to show they have the facilities and technology to handle demand and put their venues at the front of the queue.

Cvent commissioned Censuswide, an independent research company, to survey 514 corporate travel decision-makers in the United Kingdom, France, Germany, Spain, Italy, and the Netherlands, between October 20th and November 2nd, 2022. Here’s what they found:

1. Business travel will be robust and international

In total, 72 per cent of travel managers expect their business travel volume to increase either somewhat (46 per cent) or significantly (26 per cent) in 2023, when compared to 2019. Just 13 per cent say they will likely see a decrease in the travel volume of their business in 2023 relative to 2019.

Supplier takeaway

With three in 10 travel managers expecting business travel to grow significantly in 2023 compared to 2019, and a further 46 per cent believing it will increase to some extent, the opportunity for hotels is clear. Venue teams must ensure they’re engaging now with travel managers – and be prepared to respond to an influx of RFPs.

Download the full report for country-specific data, charts, and additional commentary .

2. Rising costs spur budget increases

Eighty-one per cent in total say their budget will rise, including 26 per cent who predict it will increase significantly. Only around one in six travel managers (15 per cent) believe their budget will decrease.

Set against the expectation of budget rises is a predicted increase in travel costs. In fact, 83 per cent of travel managers believe costs will be higher in 2023 than they were in 2019, with around a third of them (33 per cent) believing prices will increase significantly.

Hotels must now focus on available opportunities to increase revenue per visitor. With fewer people travelling but more events planned, providing incentives for people to spend on expenses or from their own pockets is vital. Use of technology can help venues understand what experiences and additional services visitors would like them to provide.

3. Travel managers have new needs when sourcing hotels

With budgets under pressure due to rising costs, travel managers are increasingly asking whether trips are truly necessary, and how each one fits into a new formula of cost and value.

Almost half (46 per cent) of travel managers say they are more closely assessing whether a business trip is needed. Once they’re certain it is – with the option of virtual events also available as an alternative – they rigorously compare hotels on a shifting set of priorities: cost, flexibility and sustainability.

Once the decision is made, new factors come into play during the sourcing process. Hotels should pay heed to these changing priorities. With choice revolving around price, flexibility and sustainability, venues must demonstrate their value for every element to keep ahead of their competition.

4. Demand for sustainable travel takes off

An environmentally aware approach to business travel programmes is front-of-mind for many travel buyers. Ensuring a level of sustainability in decision-making is a key part of sourcing strategies – third only in the list of planning priorities (37 per cent) that are now more important than they were pre-pandemic.

Sustainability is also having a direct impact on choice of venue. In total, 89 per cent of travel managers say this factor influences which hotels they book as part of programmes, with almost a third of them (32 per cent) claiming sustainability concerns play a significant part in selection.

Organisations in many sectors are keen to demonstrate a commitment to sustainability – corporate travel is no different. With a large majority of travel managers prioritising environmentally-friendly options when sourcing for programmes, hotels that can showcase their sustainable practices, awards, or facilities on platforms like Cvent Transient , will have the edge in 2023.

5. Interest in dual or dynamic rates increasing

Cvent’s Travel Managers Report – Europe Edition , published in June 2022, revealed almost two-thirds of travel managers (62 per cent) were open to discussing dual or dynamic rates.

In our latest study, even more (69 per cent) say their interest in such an approach has increased for the 2023 RFP season, with 20 per cent of that total stating their openness to dual or dynamic rates has risen significantly. Travel buyers in Spain are the most interested (80 per cent), although a large minority of those in the UK (38 per cent) remain to be convinced.

Interest in dual and dynamic rates as a way to make corporate travel and venue hire more cost-effective is clear. To win business in what will certainly be a competitive market in 2023, hotels must understand their potential customers’ rate strategy and expectations.

6. Travel buyers also plan events

It might not come as a shock to discover that 90 per cent of travel buyers are also the people responsible for planning. Travel managers in Italy are the most likely to also have oversight of event planning as part of their remit (98 per cent).

It’s vital to take note of the full list of duties that travel buyers oversee. Post-pandemic, many have several hats to wear: 46 per cent have assumed dual remits since 2020. Venue teams should enter negotiations fully on top of the detail of business travel sourcing and event sourcing information, to present a compelling and competitive case to win hearts and minds – and the business.

Want the country specific data, graphs, and even more commentary? Download the Cvent Travel Manager Report: Europe Edition December 2022 !

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Business Travel Trends for 2023: Expectations and Projections

Both the business and leisure travel industries faced serious changes during the pandemic. But while leisure travel is back and stronger than ever, the face of business travel seems to be forever changed.

The shift to remote work and virtual meetings made it clear that the 9-to-5 office model was becoming one of the past. Stemming from concerns about employee safety, this idea has grown into an understanding that technology can be used to allow more flexibility to employees when it comes to working hours both in and out of the office.

As a result, the corporate travel industry in a traditional sense has changed and is expected to continue on this new trajectory. While fewer people may be taking trips for strictly work purposes, the ability to work from anywhere is undoubtedly shaping the future of business travel.

1. Everyone, everywhere, all at once

If there is one thing the pandemic taught us, it is that if there is a will, there is a way – companies of all shapes and sizes powered through, despite the inability to meet face-to-face for almost two years.

And much of this is thanks to technology allowing for connectivity regardless of physical location.

Meetings were held on Zoom instead of in person, and emails and other modes of digital communication kept people connected.

The ability to work from anywhere allowed employees to discover a new meaning of work-life balance, which has extended long past the initial days of the pandemic. As a result, many companies have chosen to continue to allow their employees to work from anywhere.

The notion that anyone can be anywhere regardless of physical distance, combined with the need to make up for lost time (otherwise known as “revenge travel”) has created a new kind of trip that combines business and pleasure.

This new era of travel is marked by people who are traveling for fun and working remotely along the way. In fact, 82% of airline executives reported that they expect the combination of business and leisure travel to be more prominent than ever in a post-pandemic world.

While what we once considered a “business trip” may not be as common anymore, people are taking more trips for longer periods of time because they now have the ability to work from anywhere.

2. Workcation expectations

The shift to “bleisure” travel presents a new set of expectations and needs from the travel industry. For one, these business travelers are looking for efficiency and personalization when it comes to booking their trips. They want the ability to plan trips quickly and ensure that they will have everything they need during their travels to enable both work and relaxation.

Bleisure travelers need to know in advance that they will have access to things that make remote work possible, like access to WiFi throughout their trip. Automated travel systems allow travelers to find the best located and highest reviewed places that can accommodate their needs with just a few clicks. Booking trips via this technology makes the process more seamless than ever before, so travelers can focus on more pressing matters.

The industry is paying attention to these needs. One survey reported that 92% of travel agencies want the support of new technologies to help enhance the customer experience. With the help of this new technology, the corporate travel industry is evolving into a system that can adapt to these changes in business travel.

3. Slow return to corporate travel

While the gap between business and leisure travel is much more narrow than it once was, strictly corporate travel has still fallen short of overall expectations, with only 17% of travel managers expecting a full recovery by the end of 2022. There are a number of factors pointing to reasons why.

For one, travel costs are higher than ever and many companies are not able to foot the bill. That being said, there is no replacement for face-to-face contact, so corporate events and retreats are likely to continue to take place, at least for larger companies.

Conferences and events are still sparse in 2022, with 57% of live events still taking place online, with low attendance and high costs to blame. They are likely to return in the future, however, due to the invaluable networking and partnership components.

Another factor is a higher awareness of sustainability priorities. More than 400 companies signed the 2021 Davos World Economic Forum pledge to decarbonize by 2050. As a result, a projected 10% less is likely to be spent on corporate travel by these companies by 2025.

The current climate certainly presents a new set of challenges to the corporate travel industry. Some of these changes may affect long-term trends, while others will be more short-lived. That being said, there are also many new opportunities for travel providers to grow.

It is possible to adapt to this new world of corporate travel through the implementation of new technologies and understanding the changes in the industry. This new technology makes it possible for travelers of all kinds to personalize travel more easily than ever before. The new era of travel is marked by complicated travelers looking for simple solutions.

If you’re looking to stay ahead of the curve and on top of the trends, having the right travel software is vital. Travel Booster provides you the agility you need to do just that, wrapped inside innovative travel technology that will also boost your efficiency and profitability.

Want to find out more? Book a demo .

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Expected Business Travel Trends in 2023

Business travel has always been an industry subject to constant change.

The travel and tourism industry has rightly prided itself on its ability to adapt to new circumstances and requirements, adopt innovative technology and working methods and pioneer new approaches to making the life of the business traveller more efficient, safe and productive.

However, in recognising that ability to be fleet of foot and welcoming to business travel trends, it’s also important to highlight the many significant challenges which travel managers have had to face and will continue to confront in maintaining high standards of global business travel .

How has business travel changed over the past few years?

It would be difficult to identify many – if any – sectors of the business world which have been unaffected by the pandemic.

But for the business travel industry and, particularly for international business travelers, the impact of the global health crisis has been genuinely unprecedented.

By its nature, the corporate travel market and the business trips which it enables, depend on the ability to move freely across cities, countries and continents.

That ability was, of course, severely limited at the height of the pandemic and, even now, restrictions remain due to the continued threat which the COVID-19 virus poses to global health.

That was highlighted again at the beginning of 2023 with the introduction by a number of European countries, including the UK, of COVID testing for passengers arriving from China.

It was a move which signaled how swiftly the corporate travel industry can be affected by events beyond its control and emphasised how important it is for travel management companies to be aware of the threat of similar health crises in future.

Besides the complexities with these health risks, we have seen various other changes off the back of the pandemic, some of which are listed below:

Depleted capacity of resource in airports, airlines & hotels causing problems with travel delays.

Frequent cancellations & adjustments to travel schedules due to the capacity issue.

Disruption is no longer limited to peak times, making it harder for business travellers to plan their business trips.

A need to overhaul travel policies.

Increased focus on sustainability.

On the plus side, the travel industry’s response once the worst of the pandemic had passed demonstrates how resilient the business travel sector is despite the challenges it faces.

At the same time, the pandemic is just one of many external events which has had – and will continue to have - a significant impact on travel companies and corporate travelers and on the way in which business trips are organised.

In the last year alone, further upheaval has been created as a result of unanticipated events such as the Russian attack on Ukraine, the cost of living crisis and the huge rise in energy prices. Not to mention various cyber attacks on SAS airlines and multiple rail & airline strikes which has led to capacity caps at numerous airports.

Added to that, the UK’s departure from the EU continues to create issues for business travellers and for the industry’s ability to retain and attract the people it requires to match the growing demand.

All these factors have, to some extent, led to a scenario in which many corporate travelers are now seeing airports, airlines, hotels and car fleets on their business trip all affected by reduced capacity and resources as well as more frequent cancellations and schedule changes.

And, like many other sectors, the corporate travel industry continues to work diligently to become more sustainable and to find ways to service business professionals while also reducing its carbon footprint.

In summary, the world of corporate travel management has changed immeasurably in the past two years alone and there is nothing to suggest that the pace of change will slacken in the years ahead.

Is corporate travel still important for business success?

All the indications are that, despite challenging economic and geopolitical circumstances over the past few years, demand for corporate travel is showing signs of strong recovery for 2023.

While earlier predictions of a $1.4 trillion annual spend have now been revised, the Global Business Travel Association (GBTA) has forecast a $1.2 trillion spend for business travel in 2023.

The simple reason for that is that business travel remains absolutely essential because of its key role in reconnecting organisations both internally but, equally importantly, with external stakeholders in the commercial marketplace.

The enormous increase in remote working since the pandemic has been well documented and while many companies have now adopted a hybrid model which combines office and home working, it’s clear that, for an increasing number of organisations, working remotely is an option which many people want or expect and one which is here to stay.

However, making personal connections is invaluable in the commercial world and there is no replacement for a face-to-face meeting, whether the purpose of that is employee motivation and bonding, securing new business, closing a deals or assessing a potential new suppliers or customers.

In short, the business travel market and effective corporate travel management remains integral to economic growth.

Can we expect further growth for business travel over the next 12-months?

A recent poll conducted by the GBTA states three in four travel managers expect their company will make more business trips in 2023 and is expected to increase significantly compared 2022.

However, as we’ve already seen, forecasting likely trends in the corporate travel market for the year ahead, while always an inexact science, is even more challenging at present due to global economic and political circumstances.

That said, there are a number of areas in which clear trends are emerging.

Sustainability

The demand for more sustainable ways to travel is expected to accelerate in 2023, meaning businesses will be even more keen to demonstrate their commitment to sustainability . Travel managers will need to prioritise environmentally-friendly options when arranging flights & accommodation.

Businesses will need to be more conscious about investing in better & greener choices when travelling for business. This could involve choosing a more sustainable mode of transport, selecting accommodation that has a sustainability policy in place or it could even be as simple as having digitalised travel documents to cut down on the amount of paper being used.

In addition, many companies will have the option to participate in a carbon offsetting scheme, in order to compensate for their own carbon emissions produced via business travel activity. This can be done through either existing suppliers or separate green projects.

All in all, the world of business travel will have an increasing focus on sustainability as the year progresses.

Are Travel budgets Making their way back to 2019 levels?

Despite the challenges of recent times, business travel bookings and spending continue to make their way back to pre-covid levels. According to the GBTA, travel buyers have estimated that their companies' domestic business travel bookings have returned to 68% of their 2019 spend levels, which is up from 63% in Q4 2022.

However, companies that do not have an extensive travel budget, will have to come up with solutions to cut down on spend when employee travel is absolutely necessary for the business. Many businesses may look to send their employees on longer haul trips, with multiple layovers to make their trip more efficient, while reducing the number of travel bookings needed.

Ideally, your travel manager should be looking to assist you in formulating a clear, effective travel policy which provides your people with all the information and guidelines they need on expected costs.

Changes to business travel policies

Many businesses have adopted a hybrid-working approach since the pandemic, which has forced them to think about what their employees can, and can't claim back as expenses.

Savings made by businesses from employees working at home will require policies to be updated or renewed to include a new employee allowance.

Travel policies which may have been appropriate pre-pandemic may no longer be fit for purpose and, as corporate travel remains a key economic driver, it will be important for the business community and their corporate travel management partners to ensure that policies are updated accordingly.

Technology will become even more important for business travel

With online booking such an essential element of so much corporate travel, there are also signs that self-booking is increasing in popularity, particularly for younger business travelers who may be more comfortable with its use during the booking process.

In addition, your people don't want to be thinking about collating multiple receipts needed for an expense report while travelling on business. They want to be focusing on the reason for the business trip.

Technology can play a huge part in streamlining the business travel process; whether it's a more efficient booking process, digital payment methods or managing your travel documents.

'Bleisure' travel: can employees mix business with leisure activities?

Along with a 44% increase in business travel airfares, which is expected to rise further in 2023, we can also expect to see a rise in bleisure travel with increasing numbers of business travellers using their time away from the office to accommodate leisure activities within their itineraries.

Remote working has been the driver of this. With employees able to work from virtually anywhere that has a good WiFi connection and charging points, travel can be extended by a few days or even weeks, depending on how far they have to travel.

Traveller safety

For the best travel managers, safety will remain one of the top priorities in corporate travel.

The pandemic has emphasised the importance of employee security when travelling for business and other recent external world events have only underlined this further.

Marine & Offshore Travel are the core of Clyde's business

Alongside Clyde’s wider corporate travel management activities, our core business is our specialist support for the marine and offshore industries.

We have a 30-year track record of helping to move crews safely around the globe for some of the world's largest ship owners. As part of the Northern Marine and the wider Stena Group, Clyde live and breathe the Marine sector.

Our performance over the pandemic is testament to our expertise in this area, with one of our customers quoting that the industry average was 25% behind in crew changes in 2020; however, they were only 8% behind because they had Clyde as the trusted travel management company.

We have an unrivalled understanding of the marine sector’s complexities and challenges. Our proprietary Consort technology, which helps businesses improve communication to speed up the booking process, makes us the ideal partner to get your people where they need to be safely, efficiently and cost-effectively.

With over 100 global marine airline contracts and wholly owned operations in the UK, US, Sweden, Norway, Denmark, Netherlands and an offshore service centre in India, we have the content, knowledge and infrastructure to support some of the largest ship owners and managers in the world.

We also work closely partner agencies across the globe to ensure we deliver the best marine and offshore fares, with the flexibility required for your company and crew.

Our specialist expertise enables us to safely mobilise thousands of seafarers across the globe each year from across Europe and other key territories including the Philippines, Russia, India and Ukraine.

Our expert teams have an average length of service of nine years, can deploy unique products and technology specifically tailored to mobilising crew and access airfare savings through our farewatch and unused tickets tracking, providing our customers with tangible cost and efficiency savings.

Want to know more about what to expect for business travel in 2023? Get in touch with our corporate travel experts today.

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