According to the latest report from the International Workplace Group (IWG), the nature of business travel has undergone a permanent shift, driven by advancements in technology and changing global dynamics.
The study reveals that routine meetings between international teams are now predominantly held online, with 77% of business leaders stating that virtual tools have made their operations more efficient. Despite this, the research shows the enduring importance of in-person connections, as 87% of CEOs agree that technology cannot replace the value of face-to-face interactions for building relationships.
“Executives are now prioritising travel for the most strategically important meetings such as major business deals or nurturing significant relationships with partners. For these types of occasions, technology can and will never replace the value of in-person transactions for the most valuable meetings, ” said Mark Dixon, CEO of IWG.
Several factors influence the evolution of business travel. Rising costs, geopolitical uncertainty, and environmental concerns shape how companies approach travel planning. Flexible workspaces also play a key role, allowing 61% of executives to extend business trips to maximise productivity. Over a quarter of leaders (26%) use these extensions to schedule additional meetings, while 23% attend conferences or industry events to optimize their time.
The report highlights that businesses prioritise travel budgets for strategically significant purposes. Escalating expenses remain a major concern, with a third of CEOs citing them as a factor in reducing travel.
Environmental awareness further drives change, with three-quarters (75%) of CEOs stating that hybrid work models and virtual meeting platforms have helped reduce travel’s ecological footprint.
These shifts are making business travel more focused and efficient, with 75% of respondents reporting improving how they plan and execute trips.