Inflation fears and shrinking credit availability are prompting many companies to limit spending on areas like corporate travel. If your organization is approving fewer trips for industry expos, conferences and outside training, the latest data shows you’re not alone – and that’s likely the wise move.
Deloitte predicts corporate travel won’t return to pre-COVID levels until the end of 2024. You may remember just a few months ago some forecasters were calling for “back to normal” business travel conditions in 2023.
Times change quickly as corporations are laying off significant percentages of their workforces. Plus: Companies that’ve set sustainability goals need to reduce greenhouse gas emissions associated with employees’ flights, road travel and hotel utility usage.
Companies that set deadlines to shrink their carbon footprints to near-zero or zero levels are well behind. Many are well behind in ramping down scope 3 (direct) emissions of carbon dioxide and methane, according to a recent Wall Street Journal report.
Zoom calls and Huddle chats are here to stay
Corporate execs surveyed by Deloitte reported:
- In-person, industry-related events is the hottest travel expense for 2023. Corporate spend on live events jumped from the 5th highest spend in 2022 to No. 1.
- International travel spend will jump from 21% last year to 33%.
- Execs say travel to accommodate existing or new clients outweighs trips for team building and internal meetings.
- Travel buyers are renegotiating contracts with suppliers and paying more for hotel rooms and airfare to balance lower expected trip volumes, and
- 33% need to reduce travel by employee by more than 20% to meet sustainability targets.
When it comes to company team chats or interdepartmental meetings, many execs are content to rely on technology rather than bring everyone into the same space. Case in point: 44% of business leaders surveyed by Deloitte say internal meetings and training are “the most replaceable by technology, compared to client rapport building (11%) and client acquisition (7%).”
It’s a good bet most if not all of front line staff aren’t lamenting the lack of on-site meetings. Chief officers and senior managers may miss in-person confabs but they’re going with the flow as the Deloitte survey shows.
