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Reimagining business travel, without all the baggage

Since travel came to a screeching halt in March 2020, many have predicted that business travel might never recover, given the advances of video conferencing and the embrace of work from home policies.

But global business travel spending is expected to surpass 2019 levels this year, according to the Global Business Travel Association’s Business Travel Index released in August — that's two years sooner than GBTA was forecasting the previous year. A Mastercard survey of travel decision-makers , also released in August, found that nine out of 10 believe business travel is still critical for driving growth, and more than half expect to spend more than $1 billion on travel in 2025, up from 11% pre-pandemic.

That’s music to the ears of airlines and convention hotels, but technological advances, changing expectations and new pressures have also altered the business travel landscape in ways that may ease the journey for road warriors and frequent flyers – and the corporate teams who manage their travel. Here are five trends shaping business travel in 2024.

01 'Bleisure' is here to stay

Remote work is here to stay, and some companies have even instituted “work from anywhere” benefits, giving employees the opportunity to stretch out vacations abroad or visits to family. It also means corporate travelers can extend business trips by a few days, giving them a chance to explore more than just the convention hall or hotel amenities. The days of two-day international business trips may soon be in the rear-view mirror, as employees enjoy the perks of flexible office policies. But a distributed workforce can create new challenges when it comes to monitoring spending — a person working from home might have different expenses than a traditional office worker, like buying subscriptions, office furniture and computer equipment, which can make it more difficult for companies to predict and account for spending.

02 Business travel, consumer experience

For companies, combining business and travel is not always smooth sailing — managing expenses and reimbursements can get complicated. And for employees, the ease of paying with a tap or a click in their daily lives is missing from travel and entertainment payments, as anyone who labored over an expense report can attest. That’s why many companies are moving to virtual cards for travel expenses. These cards are created instantly for specific purposes — a business trip, a client dinner at a conference, travel arrangements for a promising recruit — with customized spend controls, such as the amount, time period and type of purchase where the cards can be used, producing detailed data for tracking, reporting and automated reconciliation. They can even be issued directly to mobile wallets, creating contactless travel experiences.

These heightened consumer expectations could also make companies expand the benefits on their commercial and corporate T&E cards — better travel insurance, concierge support, telemedicine offerings and access to airport lounges, for example.

03 AI at your service

Another extension of the “consumerization” of business travel? The AI tools taking hold in the leisure travel sector, including virtual travel agents that can customize itineraries and lock in low fares, are likely to make waves in corporate travel as well. These bots can tailor travel based on T&E policy, budget and employee preferences. And with the cost of business travel rising – CWT’s Global Business Travel Forecast for 2024 shows a 3% rise in average cost per attendee per day for meetings and events, and a 3.6% increase in hotel rates — corporate travel teams can use AI for better price predictions, more proactively managing their budgets. It can also help these teams build more dynamic policies and even adjust spending limits by analyzing past spend on a much more granular level. AI tools can simplify the arduous expense report process for both employees and finance teams by automating the capture and review of repetitive and predictable expenses. Nine in 10 travel decision-makers plan on investing in AI and machine learning to improve processes and personalize travel for their employees, according to the Mastercard survey.

04 Tracking the impact of travel

Many corporations are making concerted efforts to lower their carbon footprint. Nine in 10 travel decision-makers in Mastercard’s survey said they are more focused on tracking environmental, social and governance efforts — greenhouse gas emissions from company travel, for example. Carbon emissions tracking tools that show carbon footprint of business trips and seat selections can drive more environmentally conscious travel decisions. With sustainability at the top of corporate agendas, we can expect companies to seek out ways to help them achieve their sustainability goals. Mastercard’s T&E Consulting Services, for example, helps corporations re-evaluate their T&E policies and procedures, assess supplier performance and improve for the future.  

05 The rise of the chief travel officer

At many organizations, the responsibility for corporate travel is split between human resources, finance, procurement, technology and even security teams. Even if they’re using the same tools and platforms, there’s often a disconnect when it comes to long-term strategy and decision-making. As business travel becomes more automated, larger companies may benefit from a chief travel officer — someone who can work across the organization to streamline processes, discover efficiencies and make the most of these emerging tools, enterprise solutions and corporate card benefits, including travel risk management services, concierge support and telemedicine offerings.

The resurgence of business travel illustrates the enduring value of in-person interactions — the building of relationships, the sparking of innovation, the deepening of trust that comes from sitting across the table or sharing a meal. Technology may have enabled the rise of virtual work, but technology is also making business travel smarter and more seamless than ever before.

This month, the Mastercard Newsroom is exploring how rapidly evolving technology, heightened consumer expectations and economic and societal pressures are changing how we live, work, shop and innovate.  

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Global Business Travel and Events Costs Moderating in 2024, with Continued Modest Increases in 2025

Latest research from CWT and GBTA reveals that while costs will continue to rise, the pace of these increases will be notably slower through 2024 and into 2025

Global business travel and events prices appear to be moderating following the dramatic increases seen in recent years. The 2025 Global Business Travel Forecast , published today by CWT, the business travel and meetings specialist, and the Global Business Travel Association (GBTA), the world’s largest business travel trade organization, reveals that while costs will continue to rise, the pace of these increases will be notably slower through 2024 and into 2025.

This reflects a stabilization in market conditions and a more balanced growth trajectory, according to the report, which uses anonymized data generated by CWT and GBTA, with publicly available industry information, and econometric and statistical modelling developed by the Avrio Institute.

“While the past few years have seen significant volatility in travel costs, our latest data suggests a period of relative stability is on the horizon,” said Patrick Andersen, CWT’s President & Chief Executive Officer. “Businesses can expect to navigate a more predictable pricing environment through 2024 and 2025, allowing for better budget planning and cost management. However, price regularity is fragile. The focus on geopolitical factors, inflationary pressures and ESG concerns remains critical.”

In 2023, the global average ticket price (ATP) was $688, representing a slight decline of -1.6% from the previous year. Europe, Middle East, and Africa (EMEA) recorded an ATP of $785 last year, the highest of any region. North America (NORAM) was the region that saw the steepest growth rate, with the ATP climbing +4.3% to $777. Conversely, the ATP in Asia-Pacific (APAC) slumped -7% in 2023 to $488, following a meteoric post-pandemic rise the year before. Demand for flights remains strong globally. A record 5 billion air passengers are expected in 2024, according to IATA, surpassing the 4.5 billion peak in 2019. Meanwhile supply chain constraints such as aircraft production issues and delays, as well as a focus on profitability, will also keep prices high. The forecast indicates global ATP will increase to $701 (+1.9%) in 2024 and $705 (+0.6%) in 2025. NORAM is expected to record the sharpest increase globally this year with the ATP reaching $804 (+3.5%), followed by $808 (+0.5%) in 2025. The ATP in Latin America (LATAM) is forecast to climb to $673 (+2.6%) in 2024, and $684 (+1.6%) in 2025.

In EMEA, the ATP is projected to increase to $797 (+1.5%) in 2024 and $808 (+1.4%) in 2025, reflecting moderate growth amidst inflationary pressures. For Asia-Pacific (APAC), the ATP is expected to rise to $677 (+2.3%) in 2024, and to $688 (+1.6%) in 2025 as the region continues to ramp up intra-regional travel. HOTEL The global average daily room rate (ADR) rose +3.9% in 2023 to $158, after a +30% rise in 2022. LATAM saw the biggest pricing gains in 2023, with the ADR increasing +10.7% to $93. APAC was not far behind, recording an ADR increase of +7.4% to $131.

Occupancy levels recovered to pre-pandemic levels in some markets, while the benefits from group business travel for meetings and events. However, there is still a lack of new hotel supply. These factors will continue to support elevated prices, with the global ADR forecast to +2.5% to $162 in 2024 and a further +1.9% to $165 in 2025.

ADRs in LATAM are projected to climb to $102 (+9.7%) in 2024 and $110 (+7.8%) in 2025, owing to various factors including healthy domestic and intraregional travel demand and broader inflation trends in the region. The ADR growth in APAC is expected to cool, reaching $136 (+3.8%) this year and $139 (+2.2%) next year. Smaller increases are anticipated in EMEA and NORAM as leisure demand softens. GROUND TRANSPORTATION Car rental companies are offering greater versatility, including airport and railway transfers, as well as one-way intercity transfers. Meanwhile, the cost of buying and operating cars is easing, and fleet concerns have stabilized, so suppliers are keeping rates in check, to stimulate demand. Global car rental prices rose +3% to $44.30 per day in 2023. LATAM saw the most pronounced increase, with prices shooting up +14.2% to an average of $35.30 per day. NORAM and EMEA saw more modest increases, with prices rising to $55.60 per day (+1.3%) and $48.80 per day (+2.5%), respectively. Looking ahead, global price growth in 2024 will likely be tempered, slowing to +2.5%, with an average daily rate of $45.40. A similar growth rate of +2.4% is predicted for global rates in 2025, with prices rising to $46.50. LATAM is forecast to continue seeing sharp price gains of +11% in 2024 and +7.9% in 2025. On the flipside, APAC car rental rates are trending downwards, with prices expected to drop significantly by -6.8% in 2024, followed by a further -3.4% reduction in 2025.

MEETINGS AND EVENTS The meetings and events sector has rebounded strongly post-pandemic, with heightened demand for in-person engagements. In 2023, the average daily cost per attendee fell to $155, down from $160 in 2022, representing a -3.1% decline. This decrease can be attributed to a shift in types of meetings being held. Many organizations opted for smaller, more business-focused meetings, often without costly incentive components, to manage budgets more effectively. This focus on cost control, including selecting more affordable venues and destinations, helped offset rising accommodation and F&B prices. Looking forward, the average daily cost per attendee is projected to increase to $162 in 2024, a +4.5% rise from 2023, and to approximately $169 in 2025, an additional +4.3% increase. This upward trend reflects the sector’s continued recovery and growing appetite for larger and more complex in-person events. As organizations anticipate rising costs, they are advised to plan with a 12-month horizon and consolidate travel and meetings spend to enhance negotiating leverage.

HELPING COMPANIES ASSESS THE IMPACT ON THEIR BUSINESS TRAVEL SPEND To help businesses better understand how these price changes might impact their travel budgets, CWT has created a Forecast Calculator based on data from the report. The tool allows organizations to visualize and quantify how predicted price fluctuations across airfares, hotel rates, ground transportation, and meeting costs might influence their individual travel programs. Leveraging forecast projections, the Forecast Calculator provides a personalized assessment of travel spend, tailored to each organization’s unique travel patterns and objectives. MARKING A DECADE OF INSIGHTS To commemorate this 10th edition of the Global Business Travel Forecast, CWT and GBTA have also produced a special supplement to the report, which will be released in the coming weeks. The supplement envisions three potential trajectories for the future of business travel—Base, Boom, and Bust—between now and 2040. It predicts how key megatrends such as technological advancements, demographic shifts, sustainability pressures, and geopolitical volatility, will shape the way in which business travel is viewed, managed, and experienced in these three distinct scenarios. It also provides strategic recommendations for navigating these changes, emphasizing how organizations can adapt to emerging challenges and opportunities in the evolving business travel landscape. For more detailed information, including regional breakdowns and in-depth insights on pricing trends, please view the full Global Forecast report which GBTA members can also download in the GBTA Hub .

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Business Travel Budgets Face ‘New Normal’ With Prices to Climb Through 2025

Sean O'Neill , Skift

September 19th, 2024 at 4:00 AM EDT

It turns out that 2019 is no longer a good year to compare prices to. That should be a relief to anyone trying to explain why their travel budget looks so different now.

Sean O'Neill

• What strategies should travel managers adopt to handle rising costs?
• What regional variations in business travel costs are anticipated?
• How will global ticket prices for air travel change by 2025?

Select a question above or ask something else

• Business travel expenses are predicted to rise steadily through 2025, surpassing historical averages.
• Travel managers need to adjust budgets and strategies to cope with higher costs across air travel, hotels, car rentals, and meetings.
• Sustainability concerns and regional variations will further influence business travel costs.

Business travel expenses are expected to rise steadily through 2025, surpassing historical averages. Travel managers will need to adjust budgets and strategies to cope with higher costs across various segments, including air travel, hotels, car rentals, and meetings. Sustainability concerns and regional variations will also play a significant role in shaping future business travel costs.

Business travel expenses are expected to steady next year, though at price levels surpassing historical averages, according to an industry forecast released Thursday.

Travel management company CWT and the Global Business Travel Association predicted that prices across various segments will show modest but steady increases through 2025.

The bottom line: Travel managers face higher costs and must adjust budgets and strategies accordingly.

By the Numbers

• Air : Global ticket prices are expected to rise 0.6% in 2025, according to an analysis of tens of millions of bookings by CWT for travelers.
• Hotels: Room rates are forecast to increase by 2.6% globally in 2025.
• Car rentals : Prices are projected to climb 2.4% in 2025.
• Meetings and events : The cost per attendee per day may rise 4.3% to $169 in 2025. This jump reflects increased costs for food, beverage, venue, and labor. Event technology costs are also rising because many events are now hybrid.

What to Watch

• Elevated prices . “Lasting changes on the supply side that have created a ‘new normal’,” said Rich Johnson , VP solutions group at CWT. “So using 2019 as the baseline for spend comparison measurement is no longer helpful.”
• New anchor prices . Labor and supply chain constraints will linger, propping up hotel and airline costs. Johnson said that focusing on trips with the highest return on investment and strategic supplier relationships will be crucial.
• Better budgeting . Expect many corporations and travel managers to adopt “a zero-based budgeting approach.” This involves breaking down trips or meetings, and going through each expense, category by category, to determine from scratch what is essential. It’s more precise than taking last year’s budget and adding an inflation adjustment.
• Normalization . Look for a rebalancing between business and leisure travel demand. “Even though business travel volumes could outpace pre-pandemic levels in 2025, a likely softening of leisure travel demand will keep the pricing environment in check,” said the CWT and GBTA report.
• Sustainability concerns . Investor pressure and new regulatory requirements may also increase the cost of business travel. Expect more fees to support sustainable aviation fuel, carbon offsets, or investments in electric vehicles.
• Regional variations . Some parts of the world will see more significant cost hikes. For example, ground transportation in Latin America is forecast to increase 11% this year and 7.9% next year.

Regional Outlook

• Asia-Pacific : Expect muted price growth in 2024 of 2.3% and a more normalized rise in 2025 of 1.6%.
• Europe, Middle East & Africa : In 2023, this region had an average business trip price of $785, compared to other regions. Prices will rise by 1.5% this year and by 1.4% next.
• Latin America : Price growth is forecasted to be 2.6% this year as airlines have enjoyed healthy demand for air travel in Latin America. However, the region has struggled to add capacity due to an ongoing aircraft shortage. The 2025 prediction is for only 1.6% growth as an average across the region.

Business Travel 2024: Hotels Bet on the New Road Warriors

Business travel is nearly back – but with an asterisk. Road warriors aren’t taking as many trips, longer stays are becoming the norm, and traveler health is a primary focus. So, for those hotels willing to pivot, there’s an opening to snag these lucrative guests.

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Tags: airfares , business travel , corporate travel , cwt , forecast , gbta , hotel rates , inflation , meetings and events , per diem

Photo credit: Plaza Hotel, New York City. Adobe Stock

The comeback of corporate travel: How should companies be planning?

It seems that, finally, the light at the end of the pandemic tunnel is in sight—at least in some parts of the world. In 2020, total global business travel expenses contracted by 52 percent, while managed corporate-travel spending in the United States plummeted 71 percent, or $94 billion. Last year, when we reported  on the impact of COVID-19 on corporate travel, we projected that the road to recovery would be a long and uneven one.

Much has changed since then, thanks largely to progress on the vaccination front. Even though there’s much debate  surrounding the timing of herd immunity in the United States, it’s indisputable that vaccination rates are on the rise across the country. At the time of writing, more than 40 percent of the US population has been fully vaccinated , with more than 50 percent having received at least one dose. Companies are starting to bring employees back to offices. Corporate executives are planning in-person meetings and gatherings with customers and colleagues.

In light of new developments, to what extent will videoconferencing replace business trips? How should corporations prepare for the next phase of business travel? While our insights from last year still hold, we’ve sharpened our understanding of how business leaders could be thinking about the postpandemic role of corporate travel. In this article, we identify four categories of business travelers—the “never left,” the “never returning,” the “fear of missing out” (FOMO), and the “wait and see” segments—and provide recommendations for how key players in the corporate-travel ecosystem can make effective plans in this context.

What’s changed: Increased vaccination is expanding flexible work arrangements

The most significant change shaping our thinking about the return of corporate travel is the rising vaccination rates in the United States and Europe. We project that the United States and the United Kingdom will slowly transition toward normalcy in mid-2021, with the rest of the European Union following shortly after (Exhibit 1).

Notwithstanding the risks presented by new virus strains and limited visibility into the duration of vaccine immunity, rising vaccination rates are ameliorating some of the travel anxiety. Many organizations are now proactively figuring out the future of work —which includes the role of business travel.

For many companies, COVID-19 has proven that more workplace flexibility is possible . Around 70 percent of executives said their companies will employ more temporary workers than before the pandemic, and 72 percent of executives report that their companies have started to adopt permanent remote-working arrangements for a subset of their employees. Nearly 40 percent of the workforce in the United States has the potential to work from anywhere. These signals and others suggest that many organizations are reevaluating working and organizational arrangements , including when, why, and how their employees should hit the road.

There’s no consensus, however, among business leaders about what to do with this newfound flexibility, and many organizations have not yet clearly communicated a vision for postpandemic work: around 30 percent of executives in a recent survey  say they have not heard about specific plans for corporate travel after the pandemic, while another 28 percent described their companies’ plans as vague.

Four key segments in the return of corporate travel

Breaking down corporate trips into different segments can help travel planners and suppliers plan for the return of corporate travel. We’ve identified four different business-travel profiles, each sitting at a different point on the travel-resilience spectrum. Three indicators were used to define each archetype and determine its position on the spectrum: sector, travel purpose, and whether the trip was domestic or international. For travel purpose, if in-person interactions remain critical for a company, then the more resilient such business trips are. Some assumptions were made on how likely it was that some forms of corporate travel would recover rather than be substituted by videoconference technology.

The profile mix varies from company to company, and it’s possible for all four to coexist within the same organization, although some might feature more prominently in some companies and less in others.

• The “never left” segment. On one end of the spectrum, employees for whom travel is deemed essential for conducting business resumed their trips as soon as lockdowns eased. This category accounted for around 15 percent of all corporate travel expenses in 2019 and includes managers in manufacturing companies with a wide distribution of factories and plants and field-operation workers. Those who were reluctant to fly opted for rail and private cars instead.
• The “never returning” segment . On the other end, business travelers that contributed to one-fifth of business travel spending in 2019 present an enticing opportunity for corporations to permanently slash their corporate-travel budgets. Digital adopters who are able to maintain high levels of effectiveness while working remotely may never return to corporate travel. Furthermore, advances made in digital technologies that enhance oversight of outposts have paved the way for corporate travel to be further reduced. For instance, many chain restaurants found ways to minimize corporate travel by replacing in-person visits with virtual alternatives, as well as establishing more local oversight systems. They are likely to want to keep these significant cost savings; although a certain number of business trips will continue after the pandemic even in this segment, they will do so at much lower levels than before.
• The “fear of missing out” (FOMO) segment. The bulk of business travel (60 percent of business-travel expenditure in 2019)—which will likely drive the rebound of corporate travel—will be fueled by the FOMO segment: those traveling to cultivate important client relationships. Small and medium-size enterprises (SMEs) will likely increase corporate travel at much faster rates, as they are not subject to the heightened approval process that large enterprises have to follow. SMEs are likely to trigger a domino effect where one company’s resumption of business trips will catalyze its rivals’ return to work-related travel. Faced with intense competition, different players in the company (leadership, management, staff) coalesce to reinstate corporate travel at scale to seize a first-mover advantage over rival businesses. An April Global Business Travel Association (GBTA) member survey reported that more than 50 percent of respondents are developing or plan to develop a timeline for resuming travel, updated travel policies, or new safety resources and information for travelers.
• The “wait and see” segment. This segment consists of workers in relatively noncompetitive industries and roles; it contributed 5 percent of total business-travel spending in 2019. These corporate travelers tend to come from the public sector, professional associations, and nonprofits. During the pandemic, many professional associations were able to hold virtual events to replace in-person conferences and will likely be more cautious in their return to travel.

Taken together, the trajectories of the four travel categories confirm our earlier projection of an uneven recovery for corporate travel. Overall, we can expect a 20 percent reduction in corporate travel spending by 2023.

In addition, it’s worth noting that even within these segments, business-travel recovery will vary depending on the purpose and distance of the business trips (Exhibit 2). For instance, even for firms in the “never left” segment, overseas travel to attend international conferences has not returned because of government-imposed restrictions due to public-health concerns. Furthermore, given the uneven rollout of COVID-19 vaccines internationally, the return of international travel may be further suspended in regions with limited or delayed access to vaccines due to sustained public-health restrictions and/or disease outbreaks. On the flip side, “never returning” business travelers may still make exceptions for key events that are held regionally.

In the United States, a comparison of a multinational conglomerate’s internal and external travel spend and that of a private health insurer provides an example of how the recovery trajectory may differ from business to business (Exhibit 3). Internal travel encompasses trips taken for intracompany purposes, where employees participate in activities such as training, team building, or inspection of field operations. External travel, on the other hand, refers to trips employees take for engagements outside the company, including in-person meetings with clients and suppliers, trade conferences, and customer sales calls.

The multinational conglomerate we examined, a manufacturer of building products, had a total travel spend in 2019 of around $80 million. As a customer-driven business, the company spends the majority of its travel expenses on external travel. Much of this falls into the FOMO segment, which is already recovering at a faster pace this year relative to internal travel even though the overall travel expenditure remains depressed. The bulk of its internal travel was for the purposes of internal collaboration in 2019, a third of which is expected to be permanently eliminated, while the rest should gradually return over the rest of this year and 2022.

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Approaching the future of corporate travel: Four steps

Charting a safe and effective road map for future corporate travel requires all players to collaborate. Key players in the ecosystem—suppliers (including airlines, hotels, car-rental and rideshare companies), corporate-travel planners, travel intermediaries such as online travel agencies (OTAs), global-distribution-system (GDS) providers, and travelers themselves—need to master four critical skills: leveraging real-time data, planning with agility, aiming for comfort and safety, and communicating with clarity.

Leverage real-time data

Planning for the future can feel like flying through a fog of uncertainty, which makes it even more important for players to leverage real-time data to inform their decision making. Organizations could invest in data capabilities to identify and monitor the first signs of an acceleration in business travel.

Planning for the future can feel like flying through a fog of uncertainty, which makes it even more important for players to leverage real-time data to inform their decision making.

OTAs and GDS providers may be worth exploring as new data sources. Travel intermediaries such as these are uniquely situated to provide aggregate data for each industry. For instance, they can inform a corporate-travel planner how many seats are being booked by the rest of the company’s sector, signaling whether the company is ahead of or behind the curve. Many corporate-travel planners are also concerned about the fluctuations in the cost and availability of tickets, given the volatility of flight schedules during this time. Intermediaries can provide data that suggest which flights are more likely to stay on an airline’s schedule, helping clients build more agility into their decision making. Intermediaries may be able to create a new revenue stream from these data.

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Real-time data also help suppliers of corporate travel, such as air carriers and hotels, become more agile. As corporate travel returns, these suppliers will need to deploy the right resources in real time to match demand, which may shift abruptly. For example, one airline made a costly mistake by being unprepared for the sudden spike in demand for leisure flights over the recent Easter holiday. As recovery will likely be uneven, airlines will have to figure out how to have aircraft, pilots, and crew on standby so they can increase capacity quickly whenever there’s a need. Organizations can meet regularly to discuss data-driven insights and align on next steps.

Embed agility into planning

It pays to have a detailed plan and strategy for different recovery scenarios in place. When demand picks up, many firms may find that they don’t have the time to pause and think through their strategies.

When it comes to organizing business trips for employees, corporate-travel planners will need to take into account four considerations:

• First, the factors that affect whether corporate travel should increase: for example, local and regional infection levels, customer demand, and competitive actions.
• Second, the relevant data sources used to evaluate these factors: these could include public-health indicators, customer surveys, data from travel partners on industry trends and competitor behavior, and real-time pricing from GDSs consistent with typical corporate agreements, even as airline-fare classes go through realignments.
• Third, company policies on business travel: What distance-based policies should staff adhere to? Should they use rental cars, rideshares, taxis, or flights? When should they wear masks or engage in group gatherings? How (and should) companies distinguish between what activities vaccinated and unvaccinated employees can participate in?
• Fourth, information needed by travelers: this includes websites, travel help desks, and messaging.

A US health-products wholesaler and manufacturer provides an example of how these considerations work together. Currently, the company’s factories are open, while corporate offices remain closed and corporate travel is at a standstill. The company recently decided to stage-gate the resumption of corporate travel, starting with executives. Critical sales meetings and conferences will be in the next wave of business trips, followed by general sales and internal corporate activities, and finally, internal training and events. The level of corporate travel varies by state, based on local infection and vaccination rates. The company also set up tracking codes in its customer-relationship-management system to monitor when sales are won or lost due to competitive travel, which involved working with its corporate travel agent to get data on corporate-travel bookings.

The company instituted different policies for each level, including when masks must be worn, the permitted group size for indoor gatherings, and what lodging choices should be made (for example, home shares are avoided for safety and sanitation reasons). The company is developing internal brochures and a communications plan to keep its employees informed.

Personalize experiences based on safety and comfort

Safety and comfort are crucial elements in the travel experience, and they can sometimes pull in opposite directions. More can be done to bridge this gap. Both employers and travel companies could find ways to give passengers peace of mind and improve comfort and convenience. The guiding principle here is giving the traveler greater control over decisions that affect their sense of comfort and security.

For instance, airlines can personalize flight experiences by improving the functionality of their mobile apps to allow passengers to preorder their meals and snacks or make special requests. Hotels may let guests decide on the frequency and timing of housekeeping. They might consider offering initiatives that improve guests’ physical and mental well-being, for example, by offering virtual trainers to guide meditation or fitness practices. Suppliers could also consider offering radically transparent flexibility policies and allow customers a greater range of options with different associated fees for cancellations and changes.

Communicate with clarity

Even the most seasoned travelers have to accept that traveling has changed. Masks have become ubiquitous, and border restrictions, boarding procedures, and hygiene requirements seem to be ever changing. It’s critical that organizations communicate clearly what their corporate-travel policies are at any given moment in time, for every stage of the journey—from pre- to post-trip.

It helps for organizations to be extra proactive in communicating any type of change, whether regarding company-wide strategic policies or more granular details such as the company’s preferred rideshare or car-rental options for corporate travel. When changes in operations are made, companies can take special care to ensure the availability of amenities. Leadership can play a prominent role in modeling how to travel in this new reality by clearly reiterating company policies. Information websites, travel help desks, and easily digestible infographics could all be used to get the message across. Keep channels of communication open and allow employees to give feedback and raise concerns as and when they arise.

Employees, too, will go through an adjustment period as they resume their business trips. Leadership can communicate that it’s OK for them to take it slowly and that they should raise concerns if they ever feel unsafe.

Some corporate travelers will find they have to adapt quickly to the many changes in business travel, while others will have the luxury of easing themselves in over a longer period. Unpredictability will continue to be a fact of life, but one thing is certain: if everyone plays their part well (and smartly, by leveraging the technologies and processes at our disposal), the resumption of corporate travel is possible.

Jenna Benefield is a consultant in McKinsey’s Philadelphia office, Vik Krishnan is a partner in the San Francisco office, Esteban Ramirez is the capabilities and insights team leader in the San Jose office, and Matthew Straus is an associate partner in the Chicago office.

The authors wish to thank Guenter Fuchs, Jennifer Heller, and Jillian Tellez for their contributions to this article.

This article was edited by Jason Li, a senior editor in the Shanghai office.

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