Inflation has not only shaken global economies but has fundamentally altered the landscape of聽business聽travel. Remember the good old days of lounging in comfy聽business聽lounges and enjoying lavish dinners on the company without batting an eye? Well, times have changed.
Those on the ground say sky-high ticket prices and tighter company wallets can sometimes make聽business聽trips feel more like boot camp than a perk.聽Business聽travellers are pinching pennies and facing more pressure to make the trip worth every cent. The fluctuating Rand hasn鈥檛 helped 鈥� daily travel allowances barely cover the basics. And you know what they say about all work and no play 鈥� it’s making these trips much less glamorous and more grind.
The change is palpable, according to the .聽Business聽travellers have reported significant budget cuts (40 percent), a surge in reduced overnight trips (32 percent), and a noticeable dip in the quality of accommodations (31 percent). Moreover, the relentless hunt for cheaper fares has been felt by 31 percent of those surveyed.
Understandably, flights were some of the first to come under budget scrutiny. The reported that the average ticket price for聽business-related airfares rose 72% in 2022. The numbers give a sense of the situation, but what’s the reality for a聽business聽traveller trying to balance聽business聽goals with personal comfort?
Any frequent flyer will agree that聽business聽trips can be a hectic whirlwind of meetings and deadlines. But when you have to pick a cheaper, less convenient flight? Crazy early mornings or late nights, long layovers, or having to bounce between multiple airports get added to your workload.
Instead of saving聽energy聽for the big meeting, you’re left dealing with jet lag and travel fatigue. And the time you could’ve spent prepping or chilling? Wasted on navigating the extra travel hassle. Add to this – the discomfort of spending layovers on an airport bench because you鈥檝e dropped from silver to bronze, and the benefits that took some of the heavy聽lifting聽out of travel have vanished.
Companies are also making sure they get a bang for their buck. Instead of a one-day聽business聽trip with a single meeting, travellers now find their itineraries packed. Multiple appointments, visits, reviews, and the odd networking dinner thrown in. The rationale? If we’re spending so much to get you there, we might as well make the most of it. The result? The Q2 2023 Quarterly Trends Report shows corporations are travelling, on average, 20% less than 2019. 聽The unintended benefit – it’s better for the聽environment聽to batch meetings.
It’s a brave new world out there for the聽business聽traveller 鈥� and it鈥檚 forcing many who hold the purse strings to reconsider and revise their travel strategies and policies. Bonnie Smith, GM Corporate Traveller, says that now is the right time to take a strategic rather than reactive approach to聽business聽travel budgeting.
“TMCs are on the pulse of the travel industry,” says Smith. By joining forces with a company鈥檚 administrative team, a TMC can devise a monthly travel budget perfectly suited to an organisation’s specific needs. “Their extensive network and know-how can unlock global deals, allowing travellers to enjoy perks without the premium of聽business聽class flights,” Smith adds.
The expertise TMCs bring to the table can also help recalibrate the company鈥檚 travel policy 鈥� and help to set some ground rules. 鈥淚t’s all about letting the team enjoy their trips without blowing the budget,鈥� she explains.
Smith explains there are simple and easy ways to take some of the 鈥榞runt work鈥� out of聽business聽travel:
- Special rates and perks: With global industry ties from a TMC like Corporate Traveller, travellers don’t need to hunt for the best deals. They automatically get competitive rates, plus perks like lounge access or upgrades.
- 24/7 support and聽safety: Travellers can skip the stress of problem-solving during hiccups. With round-the-clock support, any issue, big or small, gets addressed without the traveller having to handle it all.
- Feedback and updates: A TMC will keep the company鈥檚 travel policy fresh so travellers always have a streamlined experience. Regular tweaks based on feedback mean travellers spend less time voicing concerns and more time enjoying seamless journeys.
- Easy expense management: Thanks to tech and tools, travellers don’t have to dread the post-trip paperwork. Simplified expense tracking means less time documenting and more time focusing on the trip’s purpose.
鈥淲hile all businesses need to have an eye on expenses, it’s equally important to provide teams with the necessary聽resources聽and flexibility when they’re on the聽road. After all, their success during these trips is directly linked to our overall success as an organisation,鈥� adds Smith.
“Overly tight travel rules can demotivate top performers. They need both freedom and the right tools to excel. Balancing costs with travellers’ genuine needs is the key to reaping the full return on investment of聽business聽travel,鈥� Smith concludes.
