Will the pandemic have everlasting effects on business travel? When the global crisis hit, the world witnessed a massive reduction in travel across all sectors. North America’s business travel spending dropped drastically from $396 billion in 2019 to $126 billion in 2020. Spending more than halved across Asia, Europe, Africa, Latin America, and the Middle East. Research by the Global Business Travel Association (GBTA) suggests that this decline amounted to around a $770 billion loss for the industry.
 

The impact of travel restrictions on business travel carried over into 2021 where U.S. corporate spend only reached 20% of 2019 levels by year end. It wasn’t until 2022 that the industry finally showed some significant recovery, meeting 55% of pre-pandemic spending by the final quarter. Now, business travel is continuing along the long road to recovery — but is normality in sight?

3 trends that indicate business travel’s triumphant return 

1. The rise of in-person events 

After years of virtual meetings, online conferences, and webinars, the industry is beginning to see a rise in in-person events again. Skift has reported that “in-person events and conferences are set to drive corporate travel’s recovery throughout 2023” since Deloitte’s 2023 Travel Outlook predicts such gatherings will support the industry in establishing a ‘new normal’. 

Why now? The report suggests that the main reason for the return to in-person corporate events is that virtual gatherings simply can’t facilitate the same level of relationship building — a key element for business success both with employees and clients. It states that current conference software is inadequate, suggesting in-person meetings remain superior. 

With the rise of in-person events on the horizon, travel managers may seek help from online booking tools, which simplify the process of researching and verifying suitable corporate housing for employees. In-city hotels, aparthotels, or short-term rentals may be most suitable for those only staying in the area for a two or three day event. 

1. The short stay boom 

January market research into US short-term rentals shows a 27% increase in property reservations. However, the number of nights being booked is shortening, with a 25% decline in length of stay. Similar trends were also observed across the UK. These findings could be a reflection of changes in the corporate world, as business travel slowly returns, driving down the average length of stay across all travel sectors. This is hardly surprising since nearly 8 in 10 travel managers told the GBTA that they expect their company to increase business trips in the year ahead. 

Short-term rentals are an ideal option for those traveling on business, as they provide extra amenities including kitchen and laundry facilities. But the ‘perfect housing’ is dependent on the individual — working together with your employee when planning a trip ensures they have a great business travel experience. 

1. Drop in remote working job listings

Along with reduced business travel, the pandemic also dramatically impacted how we all live and work. But it seems even these changes are beginning to fade. Recently we’ve witnessed a significant drop (-14%) in the number of remote job listings available, as more and more companies expect workers to return to the office and employees start to miss spending time with colleagues face-to-face. This shift could be causing a spike in business trips, now that fewer people are working from home or living a digital nomad lifestyle, not to mention the number relocations needed to facilitate rising rates of office commuting. 

Corporate accommodation that provides home-like facilities is usually most suitable for those on longer stays, such as relocations. Condos, aparthotels, short-term rentals are all great options, which travel managers and employees can explore on an all-in-one business travel marketplace. 

On top of these rising trends, on-going industry movements such as bleisure and blended travel continue to contribute to recovery of the sector. 

There’s still a long way to go to reach pre-pandemic business travel levels — it may be that, instead, the industry adopts a ‘new normal’. Trends, such as increased in-person events, shorter stays and a drop in remote job listings, all suggest that the industry is moving back in that direction.

3Sixty

3Sixty, the business travel industry’s most secure and intuitive accommodation platform, provides travel managers with over one million pre-vetted, quality rooms and properties around the world for all their business travel needs. 

Are you trying to book accommodation for employees attending in-person events or those requiring relocation for an in-office job role? Find suitable options for all circumstances on our online booking tool.