Has online communication reduced the need for business travel in your company?
Corporate travel took a big blow in 2020 as global business travel expenses reduced by 52%, and corporate travel spending in the US decreased by 71%, or $94 billion.
Companies are beginning to scrutinize the hidden cost of business travel. According to Vincent Lebunetel, an average of 6.9 hours are lost for every trip, and this lost time is equivalent to $662 per trip. While lost time cannot be eliminated completely, companies can control it through effective online communication.
Zoom shares surged to record highs in 2020, giving it a market value of over $50 billion as there were major shifts toward remote working, online conferences, and virtual meetings. Even before the pandemic, Zoom users reported a 24% reduction in corporate travel. Other video conferencing platforms, such as Lifesize and Microsoft Teams, also experienced significant increases.
Where is Business Travel headed?
Some business travelers are getting back on the road again thanks to COVID vaccines. However, in a recent survey, about 30% of executives said they don’t have specific plans for corporate travel after the pandemic. Overall, we should expect a 20% reduction in corporate travel spending by 2023.
Also, as of August 2022, Zoom has seen its stock almost tumbling back to pre-COVID levels recording a market value of $33.97 Billion.
Post-covid business travel recovery may vary depending on the purpose and distance of each trip.
Has your company reduced the corporate travel or is it back to pre-covid levels?