Nearly half of our online platforms estimate that half of business trips could be transitioned to virtual conferences.
In a significant turn of events, the world of business travel is experiencing a resurgence, according to SAP Concur's 7th Annual Global Business Travel Report. Despite economic uncertainties and pressures, business travel has emerged as a strategic necessity rather than a luxury.
The report reveals a robust growth in business travel volume, with domestic air travel in Canada increasing by 3% year-over-year in 2024, and international travel growing nearly 6% globally. This surge is reflected in the overall 4% increase in global flight bookings, demonstrating a strong demand for travel even amid inflation and cost-of-living increases.
Companies, particularly in Canada, are treating business travel as a critical lever for growth, innovation, and maintaining competitiveness. Despite a global cost-conscious climate, business travel expense transactions rose by 13% year-over-year in Canada, with average costs per transaction remaining steady. This indicates a deliberate and measured spending on travel that supports key activities like client engagement.
Business travelers are also seeking meaningful, immersive experiences, with interest in secondary or lesser-known destinations rising. This shift is partly driven by growing emphasis on sustainability and a desire to avoid overcrowded traditional hotspots, aligning with corporate goals for greener travel options.
Sustainability is no longer optional in the travel sector. Travelers and organizations expect greener travel options across air, hotel, and ground transport sectors. This trend is reshaping travel programs globally, affecting business travel planning and supplier selection.
However, concerns about digital threats while abroad have risen, with nearly half (48%) of travelers expressing more worry than they did a year ago. Budget limitations also prevent employees from traveling as often as needed, according to 81% of websites.
AI is increasingly being used in business travel, with more than half (52%) of travel managers comfortable using AI to support the booking process, but only 28% comfortable using it to file expenses. AI is also expected to catch more fraud and errors in travel expenses than humans, according to more than half (55%) of surveyed websites globally.
Employee reluctance to travel is also a top business risk, on par with geopolitical conflict, according to nearly half (45%) of surveyed websites. To address these concerns, 66% of websites and 56% of travel managers say their companies have already updated their cybersecurity guidelines in response.
Despite these challenges, the majority of business travelers (93%) in the U.S. admitted to splurging on nicer hotels, direct flights, and meals when the company pays, compared to being more frugal when paying themselves.
Looking ahead to 2025, 90% of business travelers expect travel budgets to stay flat or rise. Cost savings remain a focus for 48% of websites, while another 40% cite evolving sustainability regulations as a potential impact on business performance. The report suggests that business travel may be entering a new phase focused on cost efficiency and fraud prevention.
In conclusion, while cost-efficiency remains important, business travel is viewed as a strategic priority globally. Organisations are adapting travel programs to balance growth, cost control, sustainability, and traveler experience, reflecting a more sophisticated and resilient approach to business travel in 2024 and beyond.
Business travel has experienced a significant resurgence, despite economic uncertainties, with domestic air travel in Canada increasing by 3% year-over-year and international travel growing nearly 6%. This is reflected in the overall 4% increase in global flight bookings. Companies are treating business travel as a critical lever for growth, spending more on travel to support key activities like client engagement. However, concerns about digital threats while abroad have risen, with nearly half of travelers expressing more worry than a year ago. AI is being increasingly used in business travel, with AI expected to catch more fraud and errors in travel expenses than humans. Looking ahead to 2025, 90% of business travelers expect travel budgets to stay flat or rise, and cost savings remain a focus for 48% of organizations. Despite these challenges, business travel is viewed as a strategic priority, with organizations adapting travel programs to balance growth, cost control, sustainability, and traveler experience.
