Inside the business travel surge as companies reinvest in face-to-face connections
Business travel experienced steady growth throughout 2024 as companies placed greater emphasis on in-person meetings, industry events, and cross-border collaboration. The shift back to face-to-face engagement highlights the value of corporate travel in strengthening relationships, closing deals, and expanding business opportunities.
SAP Concur's Global Business Travel Survey found that 76 per cent of global business travellers enjoy business trips, and 67 per cent believe travel is critical for career growth. SAP Concur's own data shows clear patterns in local travel demand, reflecting how organisations are prioritising meaningful connections and business development while managing costs. Domestic airline ticket sales surged by 70 per cent from December 2023 to January 2024, with a further 49 per cent rise in domestic bookings in February before a 25 per cent decrease in March, with demand peaking again in October.
The strong start to 2024 underscored a strategic approach to business travel, with companies adjusting their schedules based on seasonal demand and key industry events. However, controlling travel costs remains a top priority for organisations, as airfares fluctuate due to seasonal trends and broader economic factors like fuel prices and inflation. Strategic planning and smart travel and expense management lets companies maximise their presence at critical business moments while balancing budgets and operational priorities.
Managing travel costs as demand and need changes is essential for organisations. SAP Concur's own data shows that domestic airfare prices fluctuated throughout the year, with February reaching an average ticket price of $426 before dropping to $422 in March. July brought some relief as fares decreased to $392 on average before spiking to $447 in October when demand was highest and falling back to $376 by December. These fluctuations likely reflect the impact of seasonal demand, fuel costs, and broader economic conditions, prompting companies to closely monitor travel expenses while balancing the need for in-person meetings and corporate mobility.
The data reflects a similar trend in international travel investment, which remains vital for organisations expanding their global presence. Companies must adapt their strategies to account for fluctuating demand and the importance of maintaining strong partnerships across borders. Organisations prioritise in-person engagement when it matters most, even with virtual meetings remaining a fixture in corporate operations. The busiest travel months, January, February, April, July, and December, show that companies plan travel around key business moments, from annual planning and industry events to year-end meetings.
International business travel followed a similar trajectory to domestic travel. SAP Concur's data shows that ticket sales increased by 53 per cent from December 2023 to January 2024, with a further 31 per cent increase recorded in February. International ticket sales peaked in May before reaching a low in December, though there was a 22 per cent year-over-year (YoY) increase from 2023. International airfares remained stable for most of the year; however, prices peaked in December at $2,759, while June saw the lowest average fares at $2,071.
Many employees also took advantage of travel opportunities to combine business with leisure, engaging in the so-called 'bleisure' travel trend. The flexibility to extend trips, work remotely, or explore new destinations alongside business commitments is becoming more common. Organisations that embrace this approach can expect to see benefits in employee satisfaction, engagement, and productivity, as business travellers return more refreshed and motivated.
The resurgence of corporate travel reflects a clear need for in-person engagement. Companies are prioritising business travel to strengthen relationships, close deals, and build their presence in key markets. Looking ahead, organisations are refining their travel management strategies to keep pace with the sustained growth in bookings, and a centralised approach to managing travel and expenses is essential.
Companies that bring travel, expense, and invoice data into a single system are better able to control costs, track spending in real time, and reduce administrative inefficiencies. Simplifying reporting and automating approvals also improves compliance and reduces manual workloads, giving finance teams more time to focus on higher-value priorities as demand for travel remains strong.
