US corporate travel grows but costs and climate concerns loom

US: A Deloitte study on 2024 corporate travel in the US reveals that amid steady growth, companies are challenged to balance face-to-face meetings with steep pricing and sustainability considerations.

The 2024 report draws on two Deloitte surveys. The first surveyed 104 US-based corporate travel managers, executives, and travel budget oversight between 16th-28th May  2024. The second survey reached 1,389 US-based corporate travellers and was conducted between 28th May to 3rd June 2024.

Key findings from the report includes:

• Most travel managers expect their companies’ spend to grow in both 2024 (73 per cent) and 2025 (58 per cent). For those projecting gains, expectations average out to 14 and 15 per cent each year.

• Return to office is cited as a driver of increased travel, as companies’ balance of remote, in-office, and hybrid work continues to stabilise.

• While fewer workers travel for sales and project work, those who do are on the road frequently. One in five frequent travellers say they travel for sales or project work more than once a month.

• Most say they enjoy business travel, and many take the opportunity to enjoy the travel without the business – two-thirds of corporate travellers extended a business trip for leisure in 2023. One in seven said they did so three or more times.

• About three in 10 travellers said they never book trips through corporate online booking tools or agents. Most travellers book at least some of their trips through unmanaged channels. Online travel agency (OTA) bookers are most attracted by better deals, while those who go directly to hotel and airline suppliers are seeking an easier process when their travel plans change. Better digital user experience and loyalty points also play significant roles in platform selection.

• Travel managers report significant progress over the past year on sustainability. On the airline side, there is a notable shift to support sustainable aviation fuel over flight-by-flight emissions comparisons. On the accommodation side, certifications are increasingly appearing in the booking path but chain-wide initiatives are receiving more attention.

• Conferences, trade shows, and exhibitions are playing a big role in travel growth, and more than six in 10 business travellers expect to attend at least one in 2024. While fewer say they will take client-focused trips for sales and project work, these types of trips are responsible for considerably more frequency.

The report concluded: “Corporate travel still lags pre-pandemic figures, but it is well along the road to recovery, growing at a rate significantly outpacing GDP growth.

“Even on this upward climb, companies face significant challenges. In the face of high costs and tough supplier negotiations, corporate leaders are balancing travellers’ demand for certain creature comforts alongside the need for more sustainable travel options. As spend approaches pre-pandemic levels, gains are expected to slow down over the next year.”