The landscape of corporate travel in 2024 showcases a diverse dynamic, where the blend of leisure and work, the pursuit of sustainability and well-being, and generational impact are redefining the traditional concept of business travel. In this FCM Travel article, we unveil the key trends in corporate travel for 2024.
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46% of workers aged 18 to 75 plan business travel
With nearly half of the workforce considering business travel, there is a significant engagement in the business realm. However, a generational gap is surprising: only 38% of Generation X workers, born between 1965 and 1980, have travel plans, marking a notable difference in the willingness to undertake business trips.
According to FCM Consulting's latest Quarterly Trend Report, major corporate airlines are projected to have seats offered in the first half of 2024 3% higher than the same period in 2019. Furthermore, 50% of these airlines are scheduled to surpass the number of seats offered in 2019. There has been an average increase of 9 percentage points compared to 2023 seats across all airlines, with North American flight companies showing aggressive growth for 2024.
A third of millennials and Gen Z add leisure days to business trips
Young professionals are leading a trend in corporate travel by integrating leisure into their work trips. Over 30% of millennials and Gen Z plan to extend their business trips to include leisure components, signaling a shift in the traditional perception of purely work-related travel. This trend is connected to the "bleisure" travel trend, as discussed below.
Additionally, 29% of Gen X and 27% of millennials plan to bring a friend along on their business trip, creating a perfect blend of professional and personal life even when away from home.
To gauge hotel occupancy levels, FCM Consulting's Quarterly Trend Report indicates an average of 68% per month in 2023. Corporate daily average rates have stabilized over the last six months. However, hotels are imposing rate increases of 3 to 8% for 2024.
Business meetings move away from major urban centers
The shift of corporate meetings and events to smaller, emerging locations implies a significant change in location preferences, representing an innovation in business travel. This change can be attributed, in part, to the high costs associated with business activities, such as meetings and conferences, in large cities. This drives companies to explore more cost-effective and accessible alternatives, including numerous emerging destinations.
In addition to the economic factor, these emerging destinations present fresh and novel opportunities for hosting events, with a diverse offering ranging from innovative spaces to unique cultural experiences. This not only allows companies to optimize their budgets but also provides the opportunity to explore new contexts and establish connections in less traditional but equally productive environments.
"Bleisure" travel is on the rise: combining work and leisure
The trend of integrating leisure into business trips, known as "bleisure", continues to gain traction. Travelers, especially younger ones, seek to maximize their time outside of work by combining work-related activities with enriching leisure experiences, extending their stays to enjoy attractive and fulfilling destinations.
Furthermore, this trend is enhanced when travelers decide to bring along a friend or family member. This companionship during leisure time complements the experience, allowing them to share moments of relaxation and discovery in fascinating destinations.
The practice of "bleisure" not only offers a more balanced perspective between work and leisure but also contributes to productivity and job satisfaction. By allowing employees to immerse themselves in different and enriching environments, a deeper connection with their work and surroundings is fostered, potentially leading to increased motivation and job commitment.
Sustainability is a growing focus
Certainly, another trend in corporate travel is related to sustainability. Environmental awareness is increasingly influencing travel decisions. Business travelers are opting for more sustainable options, from carbon-offset flights to environmentally-friendly accommodations, reflecting a greater concern for reducing their ecological footprint during travels. According to GBTA, 32% of business travellers across Europe chose to travel by train against 18% globally which is a very positive sign.
Sustainability is no longer merely associated with leisure tourism; it's now a priority in business travel,” says Justine Salvi, Country Leader, FCM Switzerland. “Many of our clients are aware of the environmental impact of their activities, and are looking to promote more sustainable practices among their employees during business travels. This includes choosing more sustainable modes of transportation and selecting hotels that implement policies and actions focused on environmental conservation.
This trend toward sustainability in corporate travel is not only a response to the growing concern for the environment but also a demonstration of corporate social responsibility.
Increased use of technology
Technology in business travel remains a fundamental driver in the evolution of corporate travel. “From event planning to corporate travel management, there is an increased integration of technological solutions to simplify processes and enhance the traveler's experience, offering greater efficiency and connectivity,” says Justine Salvi.”
For example, venue search platforms will help organizers efficiently find and compare event spaces based on their needs, eliminating the need for in-person visits for each option. Additionally, virtual and augmented reality are expected to be more widely used in business travel in 2024 for virtual site visits and training programs.
Lastly, artificial intelligence and machine learning will drive new business travel solutions, analyzing data to recommend hotels and predict flight delays.
Emerging markets are growing
Another trend in corporate travel is that emerging markets, particularly in Asia and Africa, are becoming increasingly attractive business destinations for companies and business travelers. This growth is particularly notable due to economic upturns and business development in these regions.
Companies from various industries are turning their attention to these rising markets, recognizing the growth potential and business opportunities they offer. Additionally, business travelers are showing a growing interest in exploring and understanding these emerging markets, as they provide unique cultural experiences and fruitful business collaboration opportunities.
Business travelers increasingly seek well-being
Lastly, the latest trend in corporate travel is that business travelers are increasingly seeking well-being, a trend accelerated by the impact of the pandemic. The global health crisis has emphasized the need to care for health, both physically and mentally, during business travels, leading travelers to prioritize options that promote their well-being.
Now more than ever, corporate travelers are seeking not only amenities in their accommodations but also services that promote health and balance. From hotels with gyms and spas to wellness programs, exercise facilities, and healthy eating options, a shift is occurring in how these trips are perceived.
In conclusion, these are the corporate travel trends for 2024. As you've seen, well-being, technology, and sustainability take center stage, and it's not hard to deduce that they will continue to shape business travels for many years to come.
