Business travel shifts focus on strategic meetings

The latest research from International Workplace Group (IWG), the world’s largest provider of flexible workspace solutions under brands like Regus and Spaces, highlights significant changes in the nature and frequency of business travel. As companies adapt to a post-pandemic world, rising costs, geopolitical uncertainties, and environmental concerns are reshaping how executives approach corporate travel.

The study, which surveyed over 500 business leaders, underscores a shift in priorities. Executives are now reserving business travel budgets for high-stakes, strategically important meetings, while routine discussions among global participants increasingly take place online. Over three-quarters (77%) of respondents credited advancements in digital technology for enabling routine “business as usual” meetings to be conducted virtually, improving efficiency and reducing the need for travel.

However, technology has not eliminated the need for in-person meetings. A significant 87% of CEOs affirmed that face-to-face interactions remain irreplaceable for critical moments such as signing major deals or strengthening partnerships, where trust and relationship-building are paramount.

Financial considerations are a key factor influencing travel decisions. A third of business leaders cited escalating costs as a significant concern, with airfares up 38% and hotel prices climbing by at least 82% compared to pre-pandemic levels, according to research by Harris Williams. With costs expected to rise further in 2025, 77% of CEOs indicated they would continue to leverage virtual platforms to limit business trips, focusing travel on essential engagements.

Geopolitical uncertainty has also reshaped corporate travel patterns. One in five leaders reported that geopolitical tensions, alongside changes in global health regulations and visa policies, have significantly influenced how their companies plan and prioritize travel. These factors add another layer of complexity to the decision-making process for international travel.

As businesses intensify their commitment to sustainability, environmental concerns are playing a growing role in shaping travel policies. Three-quarters (75%) of leaders noted that hybrid working models and online meeting platforms have enabled them to cut back on environmentally unfriendly trips. Large organizations, in particular, are feeling the pressure to align corporate travel policies with environmental, social, and governance (ESG) goals, making every trip count.

Efficiency has become a cornerstone of modern business travel. Flexible workspaces, such as those offered by IWG, are enabling leaders to stay productive between meetings. Three-quarters (75%) of respondents reported that business travel has become more efficient, with over half (61%) traveling less frequently but staying longer. Many are extending their trips to include additional meetings (26%) or attending conferences and industry events to maximize the value of their journeys (23%).

Business travel is also evolving to include elements of leisure. More than 87% of corporate leaders are using extra time to explore their destinations and engage with local culture. A quarter (24%) have combined work trips with vacations, embracing the “workcation” trend. Encouragingly, this shift isn’t limited to executives—74% of leaders now support their employees in working remotely from abroad to take advantage of travel opportunities.

“Advancements in digital technology, coupled with rising international travel costs, geopolitical uncertainties, and environmental concerns, have transformed the landscape of business travel,” said Mark Dixon, CEO of International Workplace Group. “Executives are now prioritizing travel for the most strategically important meetings, such as major business deals or nurturing significant relationships. For these occasions, technology can never replace the value of in-person interaction.”

As the corporate world continues to embrace hybrid working and digital innovation, business travel is becoming more selective, efficient, and sustainable, signaling a lasting departure from pre-pandemic norms.