New research from International Workplace Group (IWG) highlights the value of technology for business travel and in the changing flexible workplace – and underlines business travel’s changing nature and frequency.
The report – Hybrid Horizons – was conducted among more than 500 business leaders and highlights how business executives are prioritising strategically important meetings for corporate spending, while routine meetings between global participants are taking place largely online using available technology amid rising costs, environmental concerns, and geopolitical uncertainty.
It highlights that the rapid development of digital infrastructure means functional meetings can now be held online. More than three-quarters (77%) of business leaders say technology has enabled them to continue to conduct pure “business as usual” meetings virtually to drive efficiency.
That’s not to say hybrid working has made business travel redundant. In fact, the majority (87%) of CEOs firmly believe that technology will never replace the value of strategically important face-to-face meetings – and business travel will invariably play a crucial role in strengthening relationships and when signing key commercial deals.
The rising cost of business travel
A third of business leaders cited escalating costs as an influential factor in their post-pandemic travel decisions. Research into the cost of business travel by Harris Williams found that airfares had risen by 38% compared to pre-pandemic prices, and hotel costs had risen by at least 82%. With an expectation of continued growth in 2025, 77% of CEOs note that hosting meetings virtually enables them to reduce the number of business trips, allowing for a focus on crucial face-to-face meetings.
Geopolitical uncertainty
Looking at other macro trends, CEOs say that increasing geopolitical uncertainty had significantly impacted the nature of travel at their companies. One in five say that the current geopolitical climate has significantly impacted business travel, with changes in the global health landscape (19%) and visa regulations (19%) also influencing how they prioritise strategically important travel.
Environmental considerations
As companies look to reduce their environmental footprint, many are more considered in their approach to corporate travel. Three-quarters (75%) of leaders say that the development of hybrid work and the adoption of online platforms have enabled them to reduce the number of environmentally unfriendly trips. For larger organisations facing greater scrutiny over their carbon emissions, corporate ESG reporting and policies have led to leaders being more strategic with their travel plans.
Extending business trips to maximise efficiencies
Three-quarters (75%) of corporate leaders say that business travel is now more efficient – and more than half (61%) say they tend to travel less, but stay longer due to the availability of flexible workspaces which enable them to remain productive between meetings. A quarter (26%) now extend their travels to fit in additional meetings, reducing the need for short visits, while others (23%) have attended industry events or conferences to maximise their trips.
As leaders enjoy greater flexibility in their working patterns, 87% spend the extra time enjoying their destination and experiencing local culture. One quarter (24%) said they had actually combined a work trip with a holiday. In an encouraging move for the whole business, the benefits of travel and leisure are not exclusive to leaders – with 74% encouraging their employees to work from abroad to make the most of travelling too.