As the world enters its third year of the Coronavirus pandemic, business travel recovery is progressing. While businesses successfully transitioned to working remotely and mastered virtual meetings over the past two years, there’s no question that in-person meetings, events, and networking build stronger relationships. With vaccine rollouts, travelers can once again make use of those valuable tactics. In 2022, World Travel & Tourism Council (WTTC) predicts that business travel demand will continue growing, reaching two-thirds of pre-pandemic levels. Here are six additional business travel predictions that you can use to inform your travel choices over the next year.

Prices will rise but not beyond pre-pandemic.

The trend of increasing business travel demand will be a primary driver of higher prices for airfares, accommodations, and ground transportation. Other factors such as higher labor and fuel costs, sustainability requirements, and limitations on capacity will also feed rising prices. (GBTA*) Of course, COVID protocols and government policies will continue to influence business travel prices, as well.

GBTA forecasts business travel air prices to rise 3.3% in 2022 and another 3.4% in 2023. Hotel rates are expected to go up 13% in 2022 and an additional 10% in 2023. Because rates declined in 2020-2021, air and hotel costs will remain at or below 2019 pricing for the next two years, even with the projected increases. Ground transportation, with a rise of 3.9% in 2022 and 3% in 2023 will likely exceed 2019 prices as rental car companies try to replenish their fleets reduced due to manufacturing shortages. They will also move toward electric vehicles in response to sustainability demands from travelers, companies, and governments. Travel Maestro tip: Book car rentals as early as possible.

Air Travel Trends

Everyone knows that premium economy seating makes a flight more comfortable with the extra legroom, seat width, and greater seat recline. Pre-pandemic, premium seating could cost several times more than an economy seat (Skift) but that price gap has dropped considerably during the travel recession. As air travel demand increases, that discounted price gap is likely to evaporate. Travel Maestro tip: Now’s the time to upgrade.

Travel authority Peter Greenburg notes that cash-strapped airlines mortgaged their valuable frequent flyer programs during the pandemic for operating cash and now they carry a lot of debt. He predicts that airlines will devalue frequent flyer miles to reduce that debt. As early as January it may become harder to earn and redeem miles. Travel Maestro tip: Use accumulated miles as soon as possible to get the most value from them before the airlines start depreciating them.

For business travel destinations, India is poised to break into the top 5 business travel markets by 2022 (GBTA, 2018) while Indonesia, Sweden, and Norway are all seeing strong market growth. China remains the top destination for business travel.

Hotels will do more with less.

Hotels will continue adapting so they can do more with less. Digital technology helps alleviate low staffing, so expect more contactless check-ins via kiosks, and mobile apps for room keys. A digital concierge, a.k.a. voice assistant, might answer common questions, saving front desk man-hours.

Scaling back services by giving guests the option to request housekeeping when they want is a definite trend, as well as a health-safety protocol that will continue. Hotels offering fewer menu items but using locally produced seasonal foods is a win/win for cost, quality, and sustainability.

Expect hotel loyalty programs to up their game by updating their rewards programs with benefits such as rolling over points, matching levels earned on other brands, and upgrade perks.

On the guests’ side of the transaction, alternatives to chain hotels, such as apartments or vacation rentals, are gaining popularity. Millennials, particularly, enjoy the homier feel and accommodations closer to leisure activities.

Corporate travel policies will be updated.

Corporate travel policies should be updated to reflect changing traveler preferences and provide employer duty of care. A solid business travel policy empowers travelers to make choices while allowing the company to control costs and protect its employees.

With the rise of remote and hybrid working, companies’ duty of care responsibilities are expanding to cover all employees, not only during business travel. The pandemic is not over yet, extreme weather events are more frequent, and cybercriminals are a constant danger.

Ideally, a travel policy serves the responsibilities of the company while giving the traveler flexibility. This synergy encourages trust and transparency between the two. Travel Maestro tip: See our infographic on the Essential Elements of a Corporate Travel Policy.

A spotlight is on sustainable travel.

Aviation companies are making investments in sustainable aviation fuel (SAF) to reduce emissions. Aerospace companies are pursuing electric and hydrogen-powered flights to work toward carbon neutrality. As mentioned above, car rental companies are investing in electric vehicles. Organizations are also re-evaluating their travel programs in an effort to reduce their carbon footprints. As a result, travel suppliers are beginning to provide travelers with relevant information at the point of booking so they can make sustainable travel choices.

Will vaccination be the new passport?

There are multiple digital health passes in use today to confirm travelers’ health credentials. Vaccination is mandated for some venues, events, and even countries. Others allow proof of negative tests for admission. There is no global standard, although some sort of health credentials will likely stay in use for an extended period. The tenacity of the pandemic, as well as the individual positions and cooperation of world governments, affect achieving a commonly accepted format but such a document could even transition into some form of global identification, making international border crossing much less complicated. (BCD)

*For a copy of the Global Business Travel Association 2022 Travel Forecast, contact a Covington Business Travel Services Account Manager.