The state of the business travel industry in 2022/2023

The travel industry was one of the hardest hit by the COVID-19 pandemic, causing a decline in tourist arrivals of over 70% in both 2020 and 2021, according to statistics from UNWTO. Luckily, the industry is currently undergoing a revival. After years spent under lock and key, people from all over the globe are feeling the urge to get moving once again.

Leisure travel has increased tremendously since late 2021, with people embarking on "revenge" travel (making up for lost time with a sense of ferocity). But what about business travel? Considering most companies reverted to using technology to communicate with international clients, partners, and suppliers for a couple of years, is there a desire and a need to travel to see associates face-to-face once again? Or is corporate travel a thing of the past?

What does the future hold for this aspect of the industry going into the latter stage of 2022, as well as 2023 and beyond? We investigate business travel trends and challenges.

How are business owners and employees feeling about business travel?

While the rebound in business travel has been slower to take off, statistics show that it's finally starting to pick up speed. Progress is slow but steady, with the industry currently sitting at just below 50% of pre-pandemic. As 2022 continues, experts predict there'll be a shift from online conferences to face-to-face business events. 

The technology that has been used to keep international business relationships strong throughout the times of COVID-19 is considered to remain a go-to solution for a few more years. However, most business owners and employees agree that when it comes to productive business meetings or negotiating a new deal, there is no substitute for in-person meetings.

Looking at the results from a recent poll conducted by the Global Business Travel Association, things are looking up for business travel in 2022 and beyond. The industry has experienced a double-digit surge since February, a trend that is set to continue for the remainder of the year. 

The poll revealed that of the companies that had previously cancelled or suspended most or all trips to a certain destination, three-quarters plan to resume domestic travel, and over half plan to get back to international travel in the next three months.

What are the challenges influencing the corporate travel rebound?

The first challenge impeding the full revival of corporate travel is cost. Fuel price hikes and the excitement surrounding the return to leisure travel mean that it's significantly more expensive to travel for business purposes today compared to before the pandemic. Of course, there's also the fact that the majority of companies around the world took a huge knock during the global lockdown. As a result, for many businesses, the budget generally remains quite low as most of it is funnelled into other avenues such as marketing and HR.

Another challenge is sustainability. With countless consumers claiming to make choices regarding which brands to buy or which businesses to work with based on their eco-friendliness, many organisations are thinking twice when it comes to corporate travel. Once used routinely, most businesses now only consider corporate travel that is deemed absolutely necessary.

Finally, there are still plenty of concerns around health and safety. Business travel restrictions have been lifted in most destinations, but COVID-19 is still very much with us. Companies must, therefore, ensure sufficient duty of care when it comes to their employees, taking extra precautions to keep them healthy leading up to and during their travels.

With an increase in business travel, traveller confidence for some employees might be negatively impacted. Luckily it's possible to reduce corporate traveller concerns with rapid and accurate COVID-19 testing and by reminding employees of the importance of practising good health habits during a flight.

How companies can ensure a smooth transition back to business travel

As mentioned, duty of care is critical. But other areas that require attention as your company gets back to business travel are effective communication and agile planning. Keeping in touch with travelling employees at all times is at the core of helping them feel comfortable, confident, and cared for. Furthermore, make sure that you've partnered with the right support and service providers, such as travel marketing companies (TMCs), to help them adjust travel plans on the fly.

Health testing for business travel

Are you planning to get your corporate travellers back in the air soon? You can always rely on Cignpost Diagnostics for assistance! We specialise in health testing for business travel. Our rapid onsite testing facilities are stationed at airports, offering our ExpressTest for fast, accurate and fuss-free COVID-19 testing.

For companies sending out a large number of business travellers at the same time, we offer onsite COVID-19 testing at your premises through our mobile testing facilities. This solution is also a great option if your organisation experiences a COVID-19 outbreak and you'd like to test the whole company or an entire division.

The future of business travel looks bright, and we're dedicated to helping keep it that way! Get in touch today.