Thursday, August 22, 2024 American Express unveils key emerging trends shaping the business travel landscape in the United States. The report highlights top destinations gaining popularity, including New Jersey, California, and Hawaii, reflecting shifts in corporate travel preferences and patterns. These insights provide valuable guidance for companies and travelers navigating the evolving business travel environment.
In its latest report, American Express has issued the Amex Trendex: Business Travel Edition, providing a detailed examination of the current landscape of business travel. This comprehensive report delves into various aspects, including the amenities business travelers have access to at airports and hotels, the ongoing evolution of travel policies, and the increasing role of technology in the business travel sector. Notably, the report also highlights five US destinations that are rapidly gaining popularity for business travel, offering insights based on commercial customer spending patterns.
Key Findings from the Amex Trendex Survey The Amex Trendex report is based on an extensive survey involving 1,000 US business travelers and 500 US business travel decision-makers. This survey revealed several important trends and preferences among business travelers today. 1.
Business Travelers Value Comfort and Are Willing to Pay for It A significant finding of the survey is that comfort remains a top priority for business travelers, even when it comes at a personal cost. While a majority of companies cover business class seats for long flights (85 percent), a remarkable 77 percent of business travelers have opted to pay out of their own pockets or use personal points to upgrade their hotel or airfare. This trend is particularly pronounced among Millennials and Gen-Z travelers, who are nearly twice as likely as Gen-X and Boomers to make these upgrades frequently (30 percent vs.
17 percent). The importance of travel amenities is further underscored by the survey, which found that 80 percent of business travelers are more excited about a trip when they can take advantage of airline or hotel loyalty perks. Key amenities like in-flight WiFi (78 percent) and early hotel check-in (80 percent) are often covered by companies, at least on a case-by-case basis.
However, gym access, which 27 percent of travelers consider a “must-have,” is less commonly covered, with 47 percent of companies not offering it as part of their travel policies. 2. Blended Travel Encourages Cost-Conscious Behavior Blended travel, which combines business and leisure elements in a single trip, has long appealed to business travelers.
The Amex Trendex report reveals that 80 percent of travelers enjoy exploring their destination when on a work trip. Interestingly, the report also highlights a cost-conscious trend among those who engage in blended travel. When travelers know they will be paying for a portion of their trip, 85 percent are more mindful of expenses during the planning phase.
This trend has benefits for companies as well. Many companies (80 percent) that allow blended travel provide a duty of care that extends to both the business and personal parts of the trip. This is in contrast to the belief held by 55 percent of surveyed travelers, who thought they would be responsible for the personal portion of the trip.
As remote work becomes more prevalent, companies are facing new challenges in defining what constitutes a commute and what qualifies as reimbursable travel to the office. The survey found that 72 percent of companies with hybrid or remote employees expect them to come to the office more frequently than they did last year. However, companies are divided on whether to cover these travel costs: 32 percent cover travel expenses for remote or hybrid employees, 37 percent may cover them on a case-by-case basis, and 30 percent do not cover them at all.
3. Advancements in Business Travel Technology, Driven by AI Technology has significantly improved the business travel experience, particularly in the areas of expense management and travel booking. Historically, managing expenses has been one of the biggest pain points for business travelers.
However, the Amex Trendex report indicates that this process has become easier, with 49 percent of travelers finding expense reports simpler to complete than five years ago and 44 percent noting improvements in just the past year. AI is playing an increasingly central role in enhancing business travel, with 82 percent of companies surveyed using AI tools to manage travel, a 13 percent increase from the previous year. The use of AI has expanded across various aspects of travel management, including travel and expense policy management (75 percent vs.
61 percent), booking travel (61 percent vs. 47 percent), and providing travel recommendations, support, or contingency planning (57 percent vs. 41 percent).
To ensure proper utilization of AI tools, more than half of the companies (54 percent) using these technologies have taken steps to train their employees. This training is expected to mitigate concerns about the appropriate use of AI, allowing companies to fully leverage its potential in improving the business travel experience. For the first time, the Amex Trendex: Business Travel Edition has identified five US cities that are emerging as popular destinations for business travel.
These cities were selected based on significant growth in commercial customer hotel transactions, reflecting their rising appeal among business travelers. 1. Princeton, New Jersey Princeton, New Jersey, has seen a resurgence in business travel, driven by the state’s recent economic improvements.
Named the most improved state for business in 2023 by CNBC, New Jersey has attracted numerous companies to relocate or expand within its borders. Governor Phil Murphy and Princeton University are spearheading efforts to establish the state as a leading hub for artificial intelligence (AI), further boosting Princeton’s profile as a business travel destination. 2.
Sacramento, California California’s capital, Sacramento, is experiencing substantial growth, particularly in the semiconductor and life sciences sectors. The city’s relative affordability compared to Silicon Valley has drawn talent and business interest. Additionally, the ongoing $1.
3 billion expansion project at Sacramento International Airport and the addition of new direct flight routes make this historic city even more accessible to business travelers. 3. Durham, North Carolina Durham, part of North Carolina’s “Triangle” region, has long been known for its biotech innovation.
Recently, the city has welcomed major tech companies, creating thousands of jobs and making Durham a top destination for business in the tech sector. Raleigh-Durham International Airport was the fastest-growing airport in the US in 2023, with new airlines and routes further enhancing travel options for business travelers. 4.
Southwest Michigan (Kalamazoo & Grand Rapids) Southwest Michigan, encompassing cities like Kalamazoo and Grand Rapids, is emerging as a key business travel destination thanks to significant corporate investments in the region. With over $5.5 billion in capital investments, the area is seeing growth in various sectors, including upgraded corporate offices and event centers.
The region also offers a rich cultural scene, with world-class craft beverages, art, and accessible trails for outdoor activities. 5. Honolulu, Hawaii Honolulu has rebounded as a business travel destination following the pandemic, with tourism spending in Hawaii up 18.
5 percent in 2022 compared to 2019. Despite the setbacks caused by the devastating fires in Maui, the state’s tourism sector is expected to stabilize in 2024. Honolulu remains a popular choice for corporate retreats and incentive trips, offering the allure of an exotic destination with the conveniences of working within the United States.
The Amex Trendex: Business Travel Edition provides a comprehensive overview of the current state of business travel in the US. From the evolving preferences of business travelers to the impact of technology and AI, and the emergence of new business travel destinations, this report offers valuable insights for companies and travelers alike. As business travel continues to adapt to new trends and challenges, these findings will help guide decision-makers in creating policies and strategies that meet the needs of today’s business travelers.
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