After a years-long hiatus, business travellers are wiping the dust off their old carry-ons and saying sayonara to their home offices.
Driving the news: The age-old business trip is seeing a resurgence as companies in Canada and the U.S. move on from virtual meetings and send their employees back into boardrooms and conferences around the world.
- A new report forecasts that Canadian business spending on travel will surge to US$25.9 billion this year, up 13.5% from last year's tally. That increase eclipses the global average of 11.8% and the expected 9.2% jump for the U.S.
- U.S. airlines are also seeing a big spike in business travellers, with United Airlines posting nine of its top 10 corporate booking days in its history so far this year.
Why it matters: Many in the travel industry thought that companies would simply keep up the Zoom meetings post-pandemic, especially as the cost of travelling has gone up. That doesn’t seem to be the case, as travelling for in-person events and meetings is still good business.
- One report from just before the pandemic found for every dollar invested in business travel, businesses see an average of $9.50 in increased revenue.
Zoom out: A boost in workers mixing business and pleasure on their trips has also contributed to the spike in corporate travel, as the “workcation” phenomenon has taken off with more employers offering hybrid work models.
- About 55% of Canadian business travellers say they’re combining leisure with business trips more frequently than they did pre-pandemic.
What’s next: With more corporate jet-setters filling their calendars with a combo of meetings, conferences, and R&R, the global business travel sector is expected to be worth $1 trillion by 2030.—LA