In a world where global business dynamics are increasingly shaped by remote work, business travel remains a vital tool for accessing new markets, fostering innovation, and driving growth. However, the landscape of corporate travel is undergoing significant changes, with new challenges emerging that threaten to disrupt its efficiency and effectiveness. SAP Concur’s latest research, which surveyed 3,750 business travellers and 600 travel managers worldwide, including 850 respondents from key Asia-Pacific (APAC) countries, uncovers five critical challenges organizations must address to ensure their business travel strategies remain resilient in 2024.
1. The Ever-Present Threat of Travel Disruption
Travel disruptions have become a frequent and frustrating reality for APAC business travellers. According to the SAP Concur study, 86% of travellers in the region were forced to make last-minute changes to their travel plans in the past year due to unexpected delays, cancellations, or the need to re-route. This growing unpredictability is causing significant stress and dissatisfaction among employees, with 82% of respondents opting to add “booking buffers” to their itineraries. These buffers, which involve adding extra time at the start or end of a trip to counteract potential disruptions, are becoming an essential part of travel planning.
However, this approach is not without its drawbacks. The need for extra time reduces the appeal of business travel, with some employees considering it more of a burden than an opportunity. Companies are encouraged to adopt more flexible travel policies to mitigate this issue, allowing smoother adjustments during disruptions. This could include providing private connecting transportation, offering additional turnaround time for bookings, and enhancing travel management tools with features that simplify rebooking when disruptions occur.
2. Growing Reluctance to Travel
Despite the recognized importance of business travel for career advancement, with 72% of APAC business travellers acknowledging its significance, there is a rising reluctance to embark on these trips. The reasons for this hesitation are varied, with 42% of travellers citing safety concerns and 36% pointing to political or social issues at their destinations as significant deterrents. Additionally, the once-popular trend of combining business and leisure travel, known as “bleisure,” is now under threat due to cost-cutting measures implemented by companies.
More than 28% of APAC companies have started reducing the ability for employees to work remotely while travelling for pleasure or combining personal travel with business trips. This shift is creating tension between employees’ desires for work-life balance and the demands of their professional roles. Notably, 22% of employees stated that they would decline a business trip if they couldn’t extend it for personal travel, and 26% would refuse if they couldn’t make adjustments outside of company policy. To address this issue, businesses must find a way to balance cost management and employee satisfaction, potentially by offering flexible travel arrangements that accommodate personal preferences.
3. The Conflict Between Sustainability and Cost
Sustainability has become a key consideration for business travellers, with 28% of APAC respondents indicating that they would decline a trip due to its environmental impact or the inability to choose sustainable travel options. However, this preference for eco-friendly travel is clashing with budget constraints, as companies are increasingly cutting back on paying more for sustainable options. Over the past 12 months, 28% of APAC companies have reduced their investment in sustainable travel, making it more challenging for travellers to align their values with their professional obligations.
Despite these challenges, 31% of APAC travellers reported that their companies prioritize sustainable travel options. However, inadequate travel budgets often undermine this commitment, leaving travel managers in a difficult position to meet sustainability goals without overspending. To navigate this challenge, companies must reassess their travel policies and consider increasing their investment in sustainable options, even if it means reallocating funds from other areas.
4. Unequal Access to Travel Opportunities
While business travel is widely recognized as a critical driver of career growth, there is a pervasive inequality among APAC travellers regarding access to these opportunities. The SAP Concur study revealed that 72% of respondents believe they have not received the same travel opportunities as their colleagues. The reasons for this disparity are varied, with staff citing factors such as their level of seniority (22%), age (18%), and gender (10%) as the primary barriers.
This sense of unequal access can have serious implications for employee morale and engagement. Companies must take proactive steps to ensure that travel opportunities are distributed fairly across all levels of the organization. This could involve implementing transparent policies that clearly define the criteria for business travel and regularly reviewing these policies to ensure they are inclusive and equitable.
5. The Urgent Need for AI Solutions and Education
Artificial intelligence (AI) ‘s rise in travel management creates opportunities and challenges for APAC business travellers. While 95% of respondents expressed openness to using AI-enabled options for arranging travel, only 6% are comfortable with these technologies. This hesitation is largely due to concerns about data privacy, potential biases, and the possibility of AI-assisted bookings conflicting with company policies.
Companies must invest in AI education and employee training to overcome these barriers. By providing clear guidance on how AI tools can streamline travel planning, enhance data security, and improve decision-making, businesses can help their staff feel more confident in adopting these technologies. Additionally, companies should ensure that their AI solutions are transparent and free from biases that could disadvantage certain groups of travellers.
Conclusion: Adapting to a Changing Travel Landscape
As the global business environment evolves, so must organizations’ strategies to manage business travel. The challenges highlighted in SAP Concur’s research underscore the need for companies to be agile and responsive in their approach to travel management. By addressing issues such as travel disruption, employee reluctance, sustainability, inequality, and the adoption of AI, businesses can future-proof their travel policies and ensure that they continue to derive value from their investments in corporate travel.
Visit the official SAP Concur website to explore the full research findings and APAC-specific insights.
Written by: Michelle Warner
