100 years ago, women made their way into roles traditionally taken by men. Nowadays A.I is finding its way into roles traditionally taken by humans. What will the next wave bring? Whatever seismic shift comes next, “Leaders must prepare for a range of potential futures and incorporate agility into their strategic planning,” posits 2040: Baseline, Boom or Bust, a new report that analyses the potential influence of climate change, digital transformation, disruptive technologies like AI, skills shortages, demographic shifts and geopolitical volatility on the evolution of business travel and meetings. According to the current trajectory nearly 18% of the global workforce will engage in business travel by 2040. That figure could rise to 22% if companies fully integrate sustainable practices and advanced technologies, predicts the report.
Stephanie DeNote, Vice President, Product Management, CWT highlights workforce trends as the crux of policy decisions in the near and longer term, “I think a lot of the changes we see happening across our industry today are aligned with demographic shifts in the workforce,” she says, “The oldest millennials are in their late thirties or early forties and likely taking on senior leadership roles, while the older Gen Z-ers are at the start of their careers. Travel companies are clearly adapting their products and services to meet the needs, preferences, and expectations of these travelers.”
Over the next decade and a half, technological, social and climate forces will spur a rise in gig and freelance employment, remote work and the popularity of combining business and leisure travel compelling some travel managers to rethink their strategies for the long-haul. Understand and integrate these three trends to boost employee well-being and organizational agility.
Bleisure Boom: Rise in demand for combining business and leisure travel
“The interest in bleisure travel appears to have soared in the aftermath of the pandemic,” says DeNote, “With travel prices—and the cost of living in general—having increased significantly over the past few years, the prospect of adding a few leisure days to a work trip has become even more attractive to travelers.”
Research from Future Market Insights reveals that the bleisure tourism industry accounts for over 30% of the global business travel market which stands at USD 709.2 billion today and on its way to a whopping USD 4,219.5 billion by 2034.
The growth in combining business and leisure is encouraging some typically business-focused hotels to extend their amenities to cater for families, experiences and leisure time leading to a positive effect on work-life balance. Organizations should, however, consider several factors, “Companies need to consider the implications of bleisure travel for their duty of care, risk management, costs, data tracking and reporting requirements, among other factors, when designing their travel policies and deciding if and when to allow it,” says DeNote.
Nice Gig: Freelancing and contract work on the up
Another major workforce trend is the growth of the gig economy characterized by short-term or freelance work. The World Bank estimates there are already between 154 million and 435 million online gig economy workers globally, making up 4.4% to 12.5% of the global workforce. The higher estimate includes those who engage in gig work as secondary or supplementary employment. As the gig economy expands, freelancers and contractors might travel more frequently for short-term projects and client meetings, leading organizations to consider their approach to catering to guest travel for non-employees, consultants, guest speakers and potential candidates.
Far and Away: Remote work to become the norm
“By 2040, as companies become more reliant on digital platforms for communication and collaboration, the necessity for physical presence diminishes potentially leading to a reduction in travel related to routine business engagements, and as more companies adopt a remote-first approach,” reads 2040: Baseline, Boom or Bust, “Flexible work schedules are also transforming travel habits, allowing employees to travel outside traditional business hours and thus altering typical travel patterns.”
The total number of digital nomads has ballooned to over 35 million, a trend that could negate the need for frequent travel. However, it could increase demand for flexible, short-term accommodations and co-working spaces at various destinations, transforming how and where business activities are conducted.
“Flexible and hybrid work models are here to stay as most employees today expect at least some degree of flexibility,” says DeNote, “However, many companies are still trying to find the right balance between in-office and remote working. But it does raise its own set of challenges and considerations, and it is prompting companies to rethink how they manage their corporate travel programs. Relying heavily on virtual meeting and collaboration tools can lead to employees feeling disengaged and unproductive. It’s therefore unsurprising that we have seen a rise in travel for small meetings, as organizations want to ensure their employees have some regular in-person face time to foster greater creativity and collaboration. In light of this trend, we have introduced new features in our myCWT web and mobile apps designed to simplify team travel. For example, travelers can share a live view of their itinerary with their colleagues, which updates in real time when any changes are made to the bookings. The recipients can then join the trip and book the same flights and hotels in the shared itinerary with just a few clicks.”
Remote working brings with it compliance concerns. Employers and their travelers could be at risk of fines and sanctions if they do not have the correct immigration and tax protocols in place. CWT has partnered with a leading global specialist in business traveler compliance management, “For our clients who have subscribed to this service, we can provide a data feed of their travel bookings to our partner’s platform, which automatically assesses individual trip data and proactively alerts nominated stakeholders, travel managers, and their travelers to specific tax and immigration compliance requirements pre-trip. This eliminates the headache of navigating these complexities and helps keep travelers and their employers fully compliant in the evolving landscape of a mobile workforce,” adds DeNote.
Gig and freelance work, remote work and combining work and leisure travel are set to grow in popularity.
Read 2040: Baseline, Boom or Bust for strategic insight into the future of work and travel and how they can improve your travel policy.
