Post-Covid Business Travel: Realizing The Value Of In-Person Meetings

As corporate trips take off, leaders grapple with balancing in-the-flesh connections, sustainability concerns, and evolving stakeholder expectations

This article covers:

The unexpected resurgence of business travel and its impact on corporate strategies
Balancing the benefits of face-to-face meetings with environmental and cost considerations
Innovative approaches to incentivize sustainable travel behaviors and enhance employee experiences

Towards the end of 2022, Art of Smart published an article titled Travel Upgrade: Bold Digital Transformation Is Evolving Business Trips. The piece explained that while progressive players in the corporate travel sector were grounded during the coronavirus pandemic, they "sought to gain a competitive advantage by investing in innovation and doubling down on technology. They displayed boldness and innovation—two of The Art of Smart's four pillars to smarter decision-making for business leaders."

At the time, some considered that investment risky. Indeed, in November 2020, Bill Gates calculated that the coronavirus fallout would fundamentally alter how people travel for and conduct business. "My prediction would be that over 50 percent of business travel and over 30 percent of days in the office will go away," the Microsoft Co-Founder had said.

With the topic of global warming showing no sign of cooling post-pandemic, business leaders are feeling the heat to boost their organization's green credentials and set a better example—internally and externally—by using more sustainable travel methods, if needed at all.

However, in an era where digital communication has become ubiquitous, the value of in-person meetings is being rediscovered and redefined. For Art of Smart readers, understanding the evolving landscape of business travel is crucial for making informed decisions that balance organizational growth, employee satisfaction, and environmental responsibility.

An unexpected resurgence of business travel

Despite predictions that the coronavirus pandemic would permanently alter the business travel landscape, the industry has experienced a robust recovery.

According to the Global Business Travel Association (GBTA), worldwide business travel spending will surpass pre-pandemic levels, reaching US$1.48 trillion in 2024. This resurgence challenges the notion that virtual meetings would replace face-to-face interactions in the long term.

Additionally, TravelPerk's The Value of Business Travel Report 2024—which surveyed business travel decision-makers from 2,000 companies, and 4,600 business travelers—revealed that 62 percent of CEOs anticipate an increase in their company's travel budgets in 2024, driven by ambitions to expand into new markets and grow headcount.

The primary drivers for increased travel budgets include:

Expansion into new markets (37%)
Internal company meetings (26%)
Social company events such as offsites (18%)

Other interesting findings of the report, published in July, found:

In the US, 61 percent of companies anticipate raising their business travel budgets this year.
In Europe, 44 percent of companies expect to do the same.
C-suite executives credited in-person meetings for contributing to 34 percent of their company's total sales growth in 2023.
Some 91 percent of business travel decision-makers claim they'd lose existing customers without in-person meetings.
For SMB and mid-size companies, each dollar invested in business travel generates an incremental average of US$12 of revenue, primarily driven by new customer acquisition.

Avi Meir, CEO and Co-Founder of TravelPerk, Barcelona-headquartered TravelPerk, a travel-management company, says: "What we found goes beyond financial performance, with the human benefit of business travel proving to drive significant value for both companies and their people. Business travelers reported increased productivity, as well as a higher likelihood of staying in their current job, directly reducing company attrition rates."

Roy Hefer, Chief Financial Officer at TravelPerk argues that the number of corporate jetsetting has "always been correlated" with GDP growth. "Business travel will continue to grow; it will always be there," he says. "I think the interesting and nuanced part is how it looks like now." This sentiment reflects a broader trend: while business travel is rebounding, its nature and purpose are evolving.

Meir stresses the importance of businesses investing in their people and improving in-person collaboration. "For many businesses, growth can pose a challenge to company culture," he continues. "Culture is the operating system of a company, and I am a firm believer in connecting teams in real life to maintain this. Humans aren't designed to interact only online and we're actually seeing more investment in social employee travel experiences such as offsites and get-togethers, particularly from remote and hybrid companies."

For many businesses, growth can pose a challenge to company culture. Culture is the operating system of a company, and I am a firm believer in connecting teams in real life to maintain this. Humans aren't designed to interact only online and we're actually seeing more investment in social employee travel experiences such as offsites and get-togethers, particularly from remote and hybrid companies.

Avi Meir

CEO and Co-Founder

TravelPerk

People are shifting real estate costs into travel. You take your operating costs of running an office and instead tell people to be remote, but guess what? They need to interact. They need to get together. They need to have company culture.

Roy Hefer

Chief Financial Officer

TravelPerk

From office space to travel budgets

One of the most significant adjustments in the post-pandemic business world is the reallocation of resources from physical office spaces to travel budgets, states Hefer. "People are shifting real estate costs into travel. You take your operating costs of running an office and instead tell people to be remote, but guess what? They need to interact. They need to get together. They need to have company culture."

Companies are finding new reasons and ways to bring people together even as they reduce their physical office footprint. This trend is particularly evident in the rise of company-wide gatherings, team offsites, and strategic planning sessions that bring remote workers together in person.

Moreover, business travel is increasingly seen as crucial for career development. SAP Concur's annual Global Business Travel Survey found that two-thirds of employees feel business travel is critical for career advancement. Yet, the survey also revealed a concerning trend: 66 percent of employees think they need equal opportunities to take business trips compared to their coworkers, an increase of four percentage points from the previous year.

The SAP Concur survey, which included nearly 4,000 business travelers across 24 markets, identified several factors contributing to this perceived inequality in travel opportunities:

Level of seniority (19%)
Age (18%)
Status as a parent or caretaker (14%)
Geographic location (14%)
Physical appearance (12%)
Frequency of office attendance (12%)

Balancing sustainability and business needs

Despite advancements in digital communication, the value of face-to-face interactions still needs to be improved. While the benefits of business travel are clear, recent events have highlighted the need for thoughtful and responsible travel policies.

In August 2024, Starbucks faced significant backlash after it came to light that their recently appointed CEO, Brian Niccol, would commute to the office via private jet.

This arrangement involved Niccol flying from California to Seattle three days a week, which was criticized for its environmental impact and the message it sends to employees and customers. The situation is particularly problematic given Starbucks' previous commitments to sustainability, including initiatives to eliminate plastic straws and develop recyclable cups.

The Niccol case is a stark reminder of the importance of aligning travel policies with corporate values and public perceptions. It underscores the need for leaders to consider the broader implications of their travel decisions, particularly in an era of increased environmental consciousness and scrutiny of corporate behavior.

The Starbucks controversy highlights a growing challenge for organizations: how to balance the need for in-person meetings with environmental concerns and corporate responsibility. This dilemma is becoming increasingly relevant as stakeholders, including employees and customers, demand more sustainable business practices.

Practical steps towards sustainable travel

Germany-based Katharina Raimann, Sustainability Manager at global technology company Siemens, offers insights into how large corporations can address this challenge.

"At Siemens, we've updated our travel guidelines to explicitly allow for more sustainable travel options, even if they come at a higher cost," she explains. "This change empowers our employees to make environmentally conscious decisions when traveling for business."

This approach demonstrates how companies can take concrete steps to reduce their carbon footprint while recognising business travel's value. Raimann outlines several practical measures that Siemens has implemented:

Prioritizing train travel over flights, even when it's more expensive.
Integrating filters for sustainable hotel options in their booking systems.
Providing clear information on CO2 emissions for each trip.

"By offering both transparency about environmental impact and the genuine option to choose more sustainable alternatives, we're not just reducing our company's carbon footprint," Raimann says. "We're also engaging our employees in the process of making more sustainable choices."

Raimann leads by example in this initiative. She recounts at an event in London: "When traveling from Germany, I chose to take the train. While it was slightly more expensive than flying, it was significantly more sustainable. The Eurostar journey emitted just 190 grams of CO2, a fraction of what a flight would have produced.

At Siemens, we've updated our travel guidelines to explicitly allow for more sustainable travel options, even if they come at a higher cost. This change empowers our employees to make environmentally conscious decisions when traveling for business. By offering both transparency about environmental impact and the genuine option to choose more sustainable alternatives, we're not just reducing our company's carbon footprint. We're also engaging our employees in the process of making more sustainable choices.

Katharina Raimann

Sustainability Manager

Siemens

The rise of 'bleisure' and generational shifts

As the business travel landscape evolves, a new trend is gaining traction: "bleisure" travel: a blend of business and leisure. This shift reflects changing attitudes towards work-life balance and the recognition that travel can serve multiple purposes.

According to UK-focused research, released by spend management platform Pleo in August, 48 percent of workers have become more reliant on business trips to help save money since the cost-of-living crisis, with nearly two-thirds (64 percent) seeing the importance of never being out of pocket thanks to company cards.

This trend isn't just beneficial for employees. "We're supportive of this blended travel concept, and for good reason," says James Keating, Chief Marketing Officer of Pleo. "A recent study by the University of East London showed that when employees can add personal time to their business trips, 61 percent reported increased productivity. Moreover, they felt more trusted by the company and more integrated into the corporate culture."

Keating adds that while "we're certainly seeing this trend most prominently among our Gen Z employees, it's worth noting that the appeal of business travel isn't limited to younger generations."

Allowing employees to extend their business trips for personal time can yield multiple benefits for individuals and organizations. Companies implementing more flexible travel policies may see enhanced employee satisfaction, particularly among younger workers.

For instance, TravelPerk's report reveals that 49 percent of Gen Z desire more frequent work travel, compared to 31 percent of those over 27. Meanwhile, these extended trips can foster professional development through networking, cultural immersion, and skill enhancement, with 70 percent of Gen Z believing business travel improves their networking skills and 65 percent feeling it increases their visibility within the company.

Flexible travel policies can also prove cost-effective by reducing the need for multiple trips to the same location. These extended trips provide valuable face-to-face interactions for remote or distributed teams, strengthening company culture and team cohesion. By embracing this approach, companies can transform business travel from a necessary expense into a strategic employee engagement and development tool.

CopenPay shows direction of travel

Innovative approaches are emerging as organizations seek to balance the benefits of in-person meetings with environmental concerns. One particularly inspiring example comes from the tourism sector but offers valuable insights for corporate travel policies.

In July 2024, Copenhagen's official tourism organization introduced CopenPay, a pioneering initiative that transforms green actions into currency for cultural experiences. While primarily aimed at tourists, this model presents an intriguing possibility for the future of corporate travel.

The program rewards visitors for making sustainable choices during their stay. For example, tourists can earn points by opting for eco-friendly transportation like cycling or using public transit, or by participating in local environmental efforts such as beach cleanups.

These earned points serve as a form of cultural currency, redeemable for various enriching experiences throughout the city. Visitors might use their points to enjoy guided museum tours, rent kayaks to explore Copenhagen's waterways, or sample local cuisine at participating restaurants. This approach incentivizes sustainable behavior and deepens tourists' engagement with the local culture and community.

Central to CopenPay's success is its network of innovative partnerships. The initiative brings together local attractions, businesses, and cultural institutions to offer unique, sustainability-focused experiences. These collaborations create diverse options for visitors to redeem their points, ensuring that sustainable choices lead to memorable and authentic local experiences.

"It is a core task for us to make traveling sustainable," says Mikkel Aarø-Hansen, CEO at Wonderful Copenhagen. "And we will only succeed if we bridge the large gap between the visitors' desire to act sustainably and their actual behavior."

While CopenPay is designed for tourism, its principles could be adapted for corporate travel, creating a more engaging and sustainable approach that aligns organizational needs with environmental responsibility and employee preferences.

Companies can create sustainability rewards programs where employees earn points for eco-friendly travel choices, redeemable for perks like extra vacation days or charitable donations. They can partner with local organizations at frequent destinations to offer community engagement opportunities, fostering global citizenship among employees.

With company-wide challenges and leaderboards, gamification can make sustainable choices fun and engaging. Integrating sustainability considerations into expense management systems can make eco-friendly options more visible and accessible.

Educational components can be woven into the booking process, informing employees about the environmental impact of their choices. Finally, flexible travel policies can accommodate sustainable options, even if they take longer or cost slightly more.

These strategies can transform business travel into an opportunity for positive impact and personal growth, aligning with organizational and employee values while reducing environmental impact.

Business travel trends to watch

The resurgence of business travel in the post-COVID world presents organizations with both opportunities and challenges. While the value of face-to-face interactions remains clear, companies must navigate a complex landscape of environmental concerns, changing employee expectations, and technological advancements.

As pointed out by TravelPerk's Hefer, the shift from office space to travel budgets represents a fundamental change in how companies approach collaboration and team building. This trend, running counter to Gates's early pandemic prediction, underscores the enduring value of in-person interactions in the business world.

By embracing innovative approaches like those demonstrated by Siemens and inspired by initiatives like CopenPay, organizations can create travel policies that align with their values, meet business objectives, and satisfy employee needs. The future of business travel will likely be characterized by a more intentional, sustainable, and personalized approach that maximizes the value of every journey.

As we look towards the future of business travel, several key trends are emerging.

Sustainability-driven innovation: The push for greener travel is driving advancements in sustainable aviation fuels, electric vehicle fleets, and high-speed rail networks. These options offer lower-carbon alternatives to traditional travel methods.
AI and predictive analytics: AI-powered platforms will optimize travel management, providing personalized recommendations and improving risk management. Predictive analytics will enable more accurate forecasting of travel needs and budgeting.
Purposeful travel: Companies will prioritize high-value trips with clear, measurable objectives. Multi-purpose trips combining various business activities will become more common, maximizing the return on travel investments.
Enhanced focus on traveler well-being: Comprehensive health support, including mental health resources, will become standard. Travel experiences will be increasingly personalized to support individual well-being preferences.
Blending of business and leisure: Bleisure travel will continue to rise, with more flexible policies allowing personal time around business commitments. "Workcations" may reduce the frequency of short trips while maintaining face-to-face interactions.
Emphasis on local and regional travel: To reduce carbon footprints, companies may shift towards more local and regional travel, aligning with distributed office models and increasing the use of ground transportation.

As business leaders chart their course in this new era, they must remain adaptable, leverage technology wisely, and always keep the human element at the forefront of their travel strategies. By doing so, they can ensure that business travel continues to be a valuable tool for growth, innovation, and relationship-building in an increasingly interconnected world.

Key takeaway questions

How can your organization better align its travel policies with its sustainability goals and corporate values?
Considering financial and non-financial factors, what strategies can you implement to maximize each business trip's ROI?
How can you better integrate "bleisure" travel into your policies to enhance employee satisfaction without compromising professional standards?
How can you use data analytics to create more personalized and effective employee travel policies?
What steps are you taking to ensure that your travel policies support employee well-being and work-life balance in the post-pandemic era?