Reduced travel during the pandemic impacted company culture, employee growth opportunities, customer relationships, and revenue. According to an SAP Concur survey of 100 U.S. finance managers, a vast majority (88 percent) said that their company experienced a revenue loss as a direct result of employees’ inability to travel at pre-pandemic levels. 

At the same time, inflation has increased the price of business travel. The average domestic flight ticket for business travel in Concur Travel this past 2022 holiday season, including November and December, cost $509, up 21 percent from 2021, 41 percent from 2020, and 7 percent from 2019. With many experts predicting some degree of economic downturn in 2023, travel managers should expect business trip costs to remain close to 2022 levels.  

Some organizations have started to tighten corporate travel programs to prepare for cost impacts, but while it may feel reasonable to revert to pandemic protocols, it’s worthwhile to consider alternate options. As we also learned during the pandemic, there’s value in a hybrid approach. 

Businesses should not mortgage the company’s future by freezing all corporate travel for short-term cost gains. Instead, look for ways to balance saving money with investing in the right travel opportunities to drive revenue potential, foster essential business relationships, and support and retain top talent. Here are some business travel trends, I’m hoping to see in 2023:

Trade Real Estate Savings for Culture and Innovation – As companies adapted to a hybrid location approach, some relinquished office space to get back monthly rental savings. Those savings could be reallocated back to operating groups so that they can get their employees together and continue to collaborate and build a company culture. For example, in-person working sessions or summits to induce innovation. Sometimes, team members need to riff off one another in the same room with 100 percent attention on the task at hand. A full day of in-person meetings might easily add more benefit than 20 hours of virtual meetings.

Career Development and Diversity, Equity, Inclusion – Employees see business travel as a way to grow their careers. Nearly two in five business travelers (39 percent) want to travel more, according to our global research. Among those not traveling at their ideal frequency, 23 percent say they’ll look for a new position if their travel schedule doesn’t improve. 

In addition, most companies want to diversify their leadership. New managers and executives need to develop and grow, and one growth area is building relationships with employees, customers, prospects and industry sources. If new leaders can’t travel, they’re set up for failure. Bringing an extra employee along to an important meeting is an investment in future leadership—don’t skimp on this.

Establish Guardrails for Priority Business Trips – Get company leaders together, including finance, to discuss the positive and negative financial impacts of travel. For example, consider the cost of a $500 flight versus a $10,000-plus business deal that can be converted at a networking event with new business opportunities.

If leadership is aligned with the value of some trips, develop criteria that each proposed business trip must meet to ensure it positively contributes to revenue in the long run (e.g., relationship building, new business opportunities, direct profits, talent acquisition). Set a minimum requirement for the criterion to ensure it provides measurable business value.  

Have Employees Plan Ahead to Limit Unnecessary Spend – Use corporate travel policies to help cut back on unnecessary spend. For example, a major source is last-minute travel bookings. In 2020, 27 percent of round-trip airline bookings in Concur Travel were booked seven to 13 days prior to the trip. Nearly one in three (29 percent) were booked two to six days prior. The pandemic exacerbated near-term bookings, thanks to testing and travel restrictions that required a close-in clean bill of health. With those restrictions largely lifted, standard booking policies should be reinstated in 2023.

Concur Travel data indicates the median fare for airline tickets booked inside of six days was 35 percent higher than tickets bought outside of seven days—with larger savings available the further out from departure. So, even if a business trip is deemed a priority, set policies that encourage employees to plan ahead. When attending established conferences or meetings, book them at least three to four weeks ahead of time.

Investigate Hotel Programs – Talk to your travel management company or companies such as HRS, Booking.com or others that manage hotel programs. They take existing preferred supplier discounts and augment them with their network of hotel discounts. They ensure companies are receiving the full benefits, whether it’s free Wi-Fi, free breakfast or other features. It’s worth investigating to see if they can unlock additional savings.

Use Technology to More Directly Review Travel Requests – The best way to manage travel spend is through a direct line of sight into travel itineraries, which can’t be achieved without technology. With travel budgets again being scrutinized, make sure booking tools are set up to match priority business travel requirements and automatically flag trips that are noncompliant with maximum budgets or other travel policies. 

Make sure trips being booked outside of corporate booking tools are being captured and included in policy management. It’s important to use products to ensure that travelers are obtaining negotiated rates, even if booking on airline, hotel and car apps and websites.  Capturing this data is also valuable when negotiating the next round of supplier agreements.

Lastly, don’t lose sight of objectives around sustainability. Ensure that you are putting together a plan to capture all of your data, not just data booked ahead of time with a TMC or booking tool, but also data from rideshare, taxis, employee mileage. Talk your technology provider to ensure that you are getting a complete picture.

There’s no question that budgets are tightening and for good reason, but corporate travel drives a significant source of revenue and goodwill, and companies can’t afford to lose out on the financial benefits of in-person employee, customer, investor, supplier and partner interactions.