Business travel and the road to recovery

The past two years have left an indelible mark on countless aspects of our lives, including one many of us once took for granted: business travel.

As leisure travel begins to see a robust recovery (thanks in part to rising vaccination rates and falling COVID-19 and variant cases in the United States), a recent Deloitte report indicates that business travel still trails pre-pandemic levels, and a return to 2019 business travel norms is likely a couple of years away.

Deloitte projects that business travel spend will only “reach 55% of 2019 levels by the end of 2022.” Meanwhile, budget-fatigued organizations have realized that reduced travel expenditure has become a remedy for suffering bottom lines—and are using it as an opportunity to reevaluate, rethink, and restructure travel policies while banking welcome financial savings.

But it’s not all doom and gloom—corporate travel is returning. Here’s what experts have to say about a few bright spots on the business travel horizon.

Return to On-Location Interaction

Malik Anderson writes in “7 Business Travel Trends Set to Shape 2022” that internal meetings are anticipated to grow this year, sparking new opportunities for the travel industry.

The catalyst? A growing realization that web conferencing lacks the depth needed to convey vital messaging.

Advantages of onsite meetings include:

• Improved attention
• Increased networking and engagement opportunities
• Valuable side conversations
• Beneficial social interactions

Also under consideration is how to address travel needs of employees who transitioned to work-from-home—or even moved to a new region. As corporations begin requiring some employees to return to the office, they’re grappling with policies around those who relocated.

Discussion topics include:

• How often to reimburse travel for mandatory meetings
• Caps on reimbursement (with any overage falling on employees)
• The balance between remote flexibility and in-person presence

Recommendation: Collaborate with your corporate travel clients to develop new or updated travel policies that reflect today’s hybrid and remote workforce.

Return to Live Conferences and Events

Even if another pandemic doesn’t emerge, video meetings and conferences are here to stay. For now, many executives see web events as cost-effective and better aligned with employee safety expectations.

However, the tide is shifting.

Executives are beginning to realize that key success factors—like motivating and influencing employees—don’t translate as well online.

The U.S. Bureau of Labor Statistics reported in February 2022 that some in-person trips, such as sales pitches and trade conferences, are expected to return to pre-pandemic levels this year.

Deloitte’s study also found that live events moved up three spots among the top five triggers for increasing travel.

Why in-person meetings still matter:

• They reduce distractions and foster engagement
• Presenters can gauge body language and attentiveness
• Shared experiences build trust and connection

As Forbes quoted, one consultant said he is “treating an in-person meeting as much more precious than it was in the past.” Even when non-reimbursable, employees are often eager to attend events that strengthen their connection to teams and company culture.

Return to Face-to-Face Dialogue

For professionals whose success depends on human connection, in-person interactions are critical.

Industries like sales, client services, and public engagement rely on nuance, personal rapport, and trust-building.

While virtual meetings offer convenience and cost savings, they often fall short for pitching, selling, or revitalizing long-standing relationships—especially those impacted during the pandemic.

Personal interactions are regaining importance, particularly for messages that benefit from body language, tone, and empathy.

Focus on Flexibility and Amenities

The travel industry is experiencing its most significant evolution since the rise of commercial flying.

The pandemic revealed how quickly the world’s health landscape can shift—border closures, quarantines, and disruptions are now part of the planning equation.

Successful travel managers are now:

• Prioritizing flexibility and ease of change
• Investing in systems to quickly resolve itinerary disruptions
• Boosting traveler confidence with enhanced support

The Bottom Line

While business travel isn’t rebounding as quickly as leisure travel, research offers a glimmer of hope: it’s coming back.

If you’re a travel management company, this is the perfect time to work with your small- to mid-sized corporate clients to update travel policies for the new era—and ensure they have the right payment solutions in place.

ConnexPay is purpose-built for the travel industry. We help travel companies:

• Save money on merchant processing fees
• Earn more through virtual card revenue sharing
• Enable seamless, secure payments that support growth in this next chapter of business travel