The business trip is back – but different than before – business

He curses, the gentleman in the suit. The queue of bakers in the station concourse got in his way, and he’s in a hurry, very much in a hurry, with his trolley case, his headset, his work. “Man,” he exclaims, he also shakes his head and hurries on. The little jostling, they are back, and on a large scale, because the Republic is traveling again, especially for work.

That people from different cities regularly drive hundreds of kilometers across the republic to buy cookies in closed rooms in the instead of a mask Before discussing projects by mouth was unimaginable for a long time. The video call, including sound glitches and a funny background, was considered the meeting model of the future. According to association statistics, the number of business trips fell by 80 percent in 2020 alone. Several business travel providers went bankrupt, trolley cases, sleeping masks, coffee in the dining car were insignia of the past.

But it doesn’t seem to be possible without them: In 2021, despite complex quarantine and test rules, there were 30 percent more business trips than in 2020. Since the spring of last year, the numbers have literally exploded. There is no exact data for the entire past year, but the industry agrees on one thing: it will be high. “We always expected a bow wave,” says Alexander Albert, Germany boss of the world’s third largest business travel provider, BCD Travel, and chairman of the business travel committee at the German Travel Association (DRV). The intensity surprised even him.

He sees several causes, including a simple need to catch up. Postponed projects, postponed conferences have accumulated over two years. In addition, there were supply bottlenecks caused by the pandemic and war in Europe: “Especially with the supply chain problems, the need for personal exchange was immense,” says Albert. At the same time, 2022 was a turning point in health policy: many people were vaccinated in the spring, and restrictions were lifted in numerous countries. The latter, says Albert, were decisive. Before that, many employees were forbidden to travel – because the company was afraid of effort and costs, or because countries such as China simply banned entry. And even if people were allowed to travel, the organization was too complicated. “Two weeks of quarantine for a one-day meeting just wasn’t feasible,” says Albert.

For many people, creative exchange works primarily personally

Now that traveling is easier again, people are packing their bags for another reason: the appreciation for direct exchange has increased. This was shown in a study by the Fraunhofer Institute for Industrial Engineering and Organization. Together with the German Convention Bureau, which markets Germany as an event location, the world of work researchers have found that on-site events are felt to be of above-average importance for creative exchange. And this despite the fact that for many people they only account for a small proportion of the working time. “Networking is easier for many in personal contact,” says Stefan Rief, director of studies and institutes. “This also includes, for example, being introduced by someone or making casual contacts.”

In contrast to a tourist trip, a business trip is not planned for a shorter period of time, but for a longer period of time. The consultation time has almost tripled compared to before the pandemic, says BCD Germany boss Albert. From simple questions about the booking process to more complex emergency planning, more people are picking up the phone again. The need for advice was particularly great right after the restart. “Business travelers also had to learn how to travel again,” says Albert. This is gradually leveling off again, but at a higher level.

Desires have also changed. A current survey by the DRV shows that ten percent more business travelers than in previous years are concerned about whether they are safe on the road. The spectrum ranges from major health issues to minor practical issues. “Questions like ‘What happens if I suddenly have a positive corona test on site?’ still keep people busy,” says Albert. Travelers want emergency numbers and information about local risks in advance. At the same time, researcher Rief found out that they want to experience more: “People find it more important than it used to be to immerse themselves in the local environment, to network with what is happening there. Before the pandemic, knowledge transfer was more important.”

Trains and rental cars have been particularly popular since the pandemic

If you pack your things, you are usually on the road longer – no wonder, especially within Germany and within Europe, travelers often decide to take the train instead of the plane. Rental cars have also been particularly popular since the pandemic. “In the rental car, I only breathe my own air,” says Albert. “The classic, that you fly to Paris in the morning for a one-hour meeting and back in the evening, is now a big exception,” says Albert. According to his estimates, day trips account for a maximum of 20 percent of trips. Instead, appointments are combined.

This is not the only reason why business travel has become more expensive: Energy prices and a shortage of skilled workers are also causing travel and accommodation costs to rise. To this day there are hotels where the restaurants or entire floors are closed because there is a lack of staff, says Albert. Many companies in the hotel and catering industry also have to compensate for the costs of loans and lost income in recent years. This explains why the number of trips has fallen, but why sales are already above the 2019 level in some cases. Industry-wide, Albert expects 80 to 85 percent of 2019 sales in 2023.

It is unclear when this will normalize. Albert estimates: 2026. He carefully observed developments in China and Russia, where a large proportion of business trips used to go. In the course of his career he has experienced many upheavals in the industry, such as the Sars virus. “The crises used to come every six to seven years, but now the intervals have become shorter,” says Albert. The fact that more and more developments at the other end of the world determine how many people in this country get into business class has long been part of everyday life. “This shows above all how globalized we all live.”

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