Corporate traveling expected to increase as economy recovers
Monday, November 25, 2013
As competition soars for businesses worldwide, it's important that decision-makers are considering the benefits of sending employees away to act on behalf of their companies. Reaching a wider audience typically requires in-person communication, and now that traveling has become simpler, it's easier and often more cost-effective for organizations to staff corporate ambassadors to handle important transactions away from the office.
Economic recovery in the UK leading to rise in business travel
Travel Weekly reported that as economic recovery rises in the U.K., businesses are becoming more comfortable with the idea of off-site interactions. The benefits of corporate traveling are in the ability to establish strong and lasting relationships with new partners and clients, and in order for employers to retain these new contacts, staff members are often required to make frequent and extended journeys to remote destinations.
As these are trips of business, not leisure, decision-makers are also typically expected to provide the employee with the necessary amenities. Corporate housing, for instance, is often part of the travel budget, and in some cases, additional expenses are accounted for, such as meals and airfare.
According to the source, the U.K. is experiencing a rise in the anticipated number of businesses that will confidently utilize corporate travel because of the country's state of economic recovery. As the cost of the aforementioned necessities is often high, companies that were once unable to afford traveling expenses are now fiscally stable enough to participate in distant marketplaces.
Global business travel expected to rise
According to NBC News, the volume of traveling has increased globally as a result of economic recovery. There are barriers in this growth, however, that stem from an increase in the rate of competition among airlines.
"North American airfares are expected to decline in 2014 as a result of heightened competition from low-cost carriers, challenging unemployment levels and corporate travel policies becoming more stringent in regard to business-class travel," noted the American Express Global Business Travel Forecast, according to the source.
On the ground, the news provider reported that more convenient lodgings are being constructed to address the unbalanced growth between a rise in travelers and a lack of business-appropriate housing, which should include board rooms and areas to entertain high-priority guests.
Despite these disparities in the business sector, corporate travelers typically provide their employers with worthwhile investments.