Winning new business and managing existing client relationships are the two dominant business activities motivating organisations to a return to business travel, according to the first phase of a combined multinational ‘State of the Market’ survey by global TMC, FCM Travel Solutions, and sister SME-specialist business travel provider Corporate Traveller.
A total of 1600 business travel managers, bookers and travellers at FCM and Corporate Traveller clients in EMEA (Europe, Middle East and Africa), Asia, the Americas, India, Australia and New Zealand took part in the survey last month.
The study revealed that the main reasons why organisations consider resuming business travel were:
- To win new business (43%)
- To manage existing customer relationships (39%)
- To facilitate conferences/events (23%)
- To move the workforce around different work locations (20%)
- To facilitate internal meetings amongst the company’s people (15%)
- To better manage supply chain (14%)
- To engage in research and/or product development (14%)
“Human connections are an integral part of doing business,” commented Oz Desai, General Manager Corporate Traveller. “Although building relationships online is possible, anyone who has tried to organise a virtual meeting for more than ten people will know that it is simply not conducive to interaction. Presenting a business pitch virtually as opposed in person is fundamentally different, as important elements such as body language and natural interaction are missing. There is nothing worse than being in the midst of a middle of a million-rand pitch and freezing on the screen because of a bad connection. Some interactions just need to be done in person.”
The survey further revealed that the vast majority (70%) of participants expect to increase business travel gradually over a period time with consensus peaking in business travel returning domestically in one to three months (40% of respondents) and internationally in six to twelve months (32% of respondents).
The easing or complete lift of border restrictions ranked as the primary trigger for resuming business travel (70% said this would have significant impact) closely followed by organisational endorsement that it is safe to travel (68% of respondents indicated traveller safety will have a significant impact and must be reflected in travel policy). However only half of respondents believe that their business travel volumes will eventually reach pre-coronavirus levels.
Business travel recovery will be led by Asia and EMEA, according to survey participants in those regions. In Asia, 50% of respondents have already begun booking domestic travel and 37% expect to resume international travel in three to six months. In EMEA, 37% of survey participants expect to travel domestically within one to three months, and 32% anticipate starting to book international trips within three to six months, provided borders have opened. The highest level of uncertainty around when domestic and international business travel will resume significantly was in the Americas with 28% of respondents saying that they did not know when travel would return.
Other notable findings in the State of the Market study’s first phase are as follows:
• Businesses in the mining and construction sectors indicate the fastest return to travel: 64% of respondents in mining sector expect to travel domestically within one to three months and 69% of respondents in construction sector expect to travel domestically and internationally within the same timeframe)
• Construction (39%), training & education (35%) and financial services (34%) sectors indicate increasing business travel within first six months, due to a shorter lead time in arranging business travel
• While a large portion of respondents indicated a need to revamp travel policy post Covid-19, 28% of respondents were unsure what needed to change. Of those that did indicate areas for travel policy change, "health and hygiene" and "duty of care" considerations were the two dominant categories.
• Asked whether changes implemented during Covid-19 will reduce their need for business travel, there was a 50/50 split between participants agreeing or disagreeing
“The study was conducted by FCM’s consulting arm 4th Dimension (4D) in order to give both FCM Travel Solutions and Corporate Traveller greater insight into their clients’ prevailing sentiments on business travel conditions as countries emerge from the Covid-19 crisis,” said Desai. “It’s vital for us to understand if and how our clients will start to travel again, and their primary concerns and objectives when they do so.