After a challenging few years for the travel sector, it has been reported that the UK’s business travel spending is expected to reach a record-breaking £68 billion by the end of 2024, exceeding pre-pandemic levels.
This resurgence is a turning-point for UK business tourism. The nation is now the fourth biggest spender in the world, with business trips coming from the United States and Poland.
With travel demand on the rise, Peter Slater, CEO of ground transportation company CMAC Group, warns that many businesses face unique opportunities and challenges shaped by both increasing demand and rising costs. He encourages businesses to respond strategically to the increasing demand for business travel by rethinking how they approach it. This will ensure that their approach better supports employee well-being, balanced budgets, and optimal productivity.
Why business travel is on the rise?
CMAC Group published a report recently that found that 55.4% of respondents believed that face-toface meetings were more effective than virtual ones. An additional 24.9% thought they were much more effective.
Slater explains how virtual meetings were a lifeline for those affected by the pandemic but they are often ineffective when it comes to building relationships, negotiating complicated deals, and networking.
Slater says that a screen is limited in its ability to convey information about relationships and the closing of large deals. “Both business executives and employees are eager to get back to face to face meetings, projects, and events where they could collaborate, understand one another, and achieve quicker results.”
In-person interactions are important for many industries. They can help with key decisions, strategic collaborations, and trust-building. Slater states that “Virtual communication will always play an essential role, but a handshake, a shared conversation, and interacting in person is irreplaceable.”
Balancing rising employee travel costs with employee well-being
The return of business travel comes as many companies are trying to stay within their budgets.
Slater suggests that a focused approach to travel planning will help businesses achieve this balance. “It is about being intentional. Selecting accommodations that are both budget-friendly and provide employees with a restful, comfortable space.”
Slater continues, “Travel is exhausting. While businesses need to be mindful about their travel spending right now and save on costs does not have to mean compromising wellbeing.” Finding providers that prioritize comfort, flexibility and productivity can make all of the difference to employees.
Inbound business travellers: How to accommodate them
Businesses in the UK must adapt to meet the needs of international visitors. Slater says that for international guests it’s important to understand cultural preferences and create a welcoming environment.
“Simple things like familiar accommodations and clear communication on transport options can make their stay productive and pleasant.”
For example, offering tailored travel suggestions, ensuring easy transfers to and from the airport, or even sharing local tips on business customs, or nearby amenities, can create stronger relationships with overseas counterparts.
Slater stresses that:
“Making a good impression on international partners and clients starts with the small details.”
Businesses that are proactive, and go the extra mile for their visitors, are positioning themselves as ideal business partners.
The UK is leading the world in business travel expenditure, and the number of overseas arrivals is expected to increase. Now the focus is on how companies can take advantage of this growth.
Slater concludes that “business travel doesn’t need to be reactive”. When managed carefully, business travel can become a strategic tool for building connections, driving growth, and supporting wellbeing. Companies that can achieve this balance will reap huge rewards.
