Corporations have largely adapted to the changes brought about by the global pandemic, with remote work becoming more common. However, a new challenge arises for managers: how to handle business travel for those remote or hybrid employees. A study conducted by the Global Business Travel Association found that nearly half of companies have revised their travel policies to address this issue, with 27% having made changes since the pandemic and 21% currently formulating new guidelines. Some of the key concerns include determining which types of meetings are allowed for travel, how often employees can travel to the office, what types of transportation are reimbursable, and how much is allowed for per diems and accommodation.
The issue of who pays for travel when a remote employee relocates to a different location but is needed periodically in another city is a complex one. While some large companies have mandated in-office requirements for certain days of the week, leading to the financial burden of commuting being placed on the employee, other companies may fund travel for employees only required in the office quarterly or monthly. However, this issue is not widespread, and the expectation of a mass migration from high-cost cities to other areas due to the pandemic has not materialized. The Census Bureau and U.S. Postal Service data show that domestic migration resumed its long-term decline in 2021 and 2022.
The rise of blended leisure and business travel is another factor affecting remote and hybrid workers and is prompting policy reviews. A significant number of corporate travelers are extending business trips with personal days, leading to hybrid travel arrangements. In response to these changes, companies are expecting an increase in internal meetings, which are seen as important for fostering creativity and collaboration among employees. Virtual meetings and collaboration tools, while useful, can also lead to employees feeling disengaged and unproductive, making in-person meetings more valuable for cultivating relationships and driving innovation.
Leading corporate travel management companies such as Amex GBT and CWT are offering tools and services to help coordinate team travel for internal meetings in response to the growing demand for such gatherings. While hybrid and remote work models are likely to be permanent features of the workplace, organizations are rethinking how they manage their corporate travel programs to accommodate these changes. Darren Toohey, CWT’s head of Global Sales, believes that while these flexible work arrangements can be beneficial for attracting and retaining talent and reducing operational costs, they also present new challenges that companies must address.
Overall, the shifting landscape of remote and hybrid work arrangements has led to a reevaluation of corporate travel policies and practices. Companies are grappling with the complexities of managing travel for remote employees, blended leisure and business trips, and the increasing demand for internal meetings. As the workforce expects more flexibility and opportunities for collaboration, businesses are adapting their travel programs to meet these evolving needs. The merging of travel management companies like Amex GBT and CWT is a testament to the changing nature of business travel and the need for innovative solutions to support the future of work.
