The Business Traveler are in focus this week through a new survey releases by American Express: Amex Trendex: Business Travel Edition. The new information delves into the amenities available to the business traveler at airports and hotels, the changing landscape of travel policies, and the state of business travel technology. In addition, American Express identify five emerging destinations for business travel in the United States base on customer spending: Princeton, New Jersey; Durham, North Carolina; Southwest Michigan (Kalamazoo and Grand Rapids); Sacramento, California; and Honolulu, Hawaii.
Business Traveler in Focus — Key Findings:
According to a survey conducts by American Express, it was found that even though most companies cover the cost of business class seats on longer flights (85%), a significant number of business travelers (77%) are willing to pay for their own upgrades to enhance their comfort during work trips. Interestingly, millennials and Gen-Z travelers are almost twice as likely as Gen-X and Baby Boomers to frequently pay for their own upgrades (30% vs. 17%).
Travel amenities play a crucial role in the preferences of business travelers, with 80% expressing excitement about trips that offer airline or hotel loyalty perks. In-flight WiFi (78%) and early hotel check-in (80%) are typically covers by companies on a case-by-case basis. However, gym access, which 27% of business travelers consider a “must-have,” is the amenity that companies are least likely to cover, with 47% not providing coverage.
Blended Travel Trends and Expense Insights
Blended travel, combining business travel and leisure travel elements, is preferred by many business travelers who seek to explore their destination while on work trips. The survey revealed that among travelers who had taken blended trips in the past year, 85% were more conscious of costs due to their personal contribution to the trip expenses. Notably, the survey also showed that 80% of companies allowing blended travel covered both the personal and business aspects of the trip, contrary to the belief of 55% of travelers who assumed personal expenses were their responsibility.
As remote work becomes more prevalent, companies with hybrid or remote employees expect them to come to the office more frequently than in the previous year, according to 72% of surveyed companies. However, there is a lack of consensus on whether business travel costs for remote or hybrid employees should cover. Only 32% of companies cover such costs, while 37% do so on a case-by-case basis, and 30% do not provide coverage at all.
The Business Traveler and The Digital Divide
Business travel technology has undergone significant improvements, particularly in the automation of expense and travel management. The survey found that business travelers consider expense reporting easier than it was five years ago (49%) or even just one year ago (44%). Furthermore, the adoption of artificial intelligence (AI) in managing business travel has increased, with 82% of surveyed companies utilizing AI, a 13% increase from the previous year. AI is now being used for travel and expense policy management (75% vs. 61%), booking travel (61% vs. 47%), and travel recommendations and support (57% vs. 41%). Over half (54%) of companies using AI tools have trained their employees on their proper usage, addressing concerns about its implementation.
“Business travelers and companies get immense value from business travel. Travelers are taking advantage of amenities to make their journeys more convenient and comfortable, corporate policies are adjusting to trends like remote work, and tech investments are improving expense management,” notes Fernando Iraola, Executive Vice President & General Manager, Global & US Large Enterprises, American Express. “Business travel continues to drive connectivity among colleagues and partners, drive business for companies, and is even helping to fuel economic growth in emerging business travel markets.”
Top Destinations for Business Travelers in 2024
The Amex Trendex: Business Travel Edition has also identified five trending US destinations for business travel in the coming year based on hotel transactions of commercial customers. These cities have experienced significant growth year-over-year:
1. Princeton, New Jersey: After facing economic challenges in recent years, New Jersey was recognized as the most improve state for business in 2023 by CNBC. Princeton University and Governor Phil Murphy announces plans to develop the region into an AI hub through collaboration with the New Jersey Economic Development Authority.
2. Sacramento, California: The capital city of California has witness substantial growth in the semiconductor and life sciences sectors. Its relative affordability compared to other parts of the state, combined with new direct routes offered by major airlines and a $1.3 billion expansion project at Sacramento International Airport, make it an attractive destination.
3. Durham, North Carolina: As part of “The Triangle” region known for biotech innovation, Durham has seen the influx of major tech companies, resulting in a thriving downtown and the creation of numerous tech jobs. Raleigh-Durham Airport has also experienced significant growth, with new airlines, destinations, and routes.
4. Southwest Michigan (Kalamazoo and Grand Rapids): Corporate investments across various sectors have fueled growth in this region, with over $5.5 billion in capital invested. The area offers world-class beer and craft beverages, art and culture, and accessible trails for outdoor activities.
5. Honolulu, Hawaii: Post-pandemic, Hawaii has witnesse a rebound in tourism, with an 18.5% increase in tourism spending in 2022 compared to 2019. Despite setbacks causes by fires in Maui, tourism is expects to stabilize in 2024. Honolulu, with its range of accommodations and attractions, attracts businesses for incentive trips and company retreats, offering an exotic destination with the conveniences of the United States.
Methodology
The methodology behind the surveys involves a sample of 1,012 full-time employee respondents who had traveled by air for work at least twice in the past 12 months and managed their own travel expenses. Additionally, 502 full-time business travel decision makers from companies with 50 or more employees participated in the survey. Both surveys were conducts online from June 7-14, 2024.
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