The Irreplaceable Value of Business Travel

Why Business Travel Is So Important

Samantha Shankman

•July 29, 2024•

6 minute read

As in-person meetings and events regain traction, the importance of face-to-face interactions in building relationships and closing deals becomes ever more apparent.

With business travel projected to reach 95% of its pre-pandemic levels by the end of the year, according to the U.S. Travel Association, its importance is clearer than ever. Data from major airlines like Alaska Airlines and Delta Air Lines supports the state of this recovery with reports of increased business traffic — all of which reflects the enduring importance of face-to-face interactions in driving business success.

Benefits of In-Person Meetings and Events

In-person meetings and events offer unique advantages that virtual interactions cannot match. These gatherings foster stronger relationships, increase engagement, and create more lucrative business opportunities.

Here are some key benefits highlighting why face-to-face interactions remain essential in 2024:

1. Human Connection and Networking

In-person meetings foster human connections, camaraderie, and collaboration, which are challenging to replicate virtually. These interactions are crucial for networking and building stronger relationships.

Why it matters: Strong relationships are the foundation of successful business ventures. The personal touch of in-person interactions can lead to trust and rapport — essential elements in forming lasting partnerships and alliances.

2. Higher Engagement and Impact

Attendees at in-person events are generally more engaged, thanks in part to unique sensory experiences like food presentations or art installations. These elements encourage mingling and spark conversations that are less likely to occur in virtual settings.

Why it matters: Higher engagement leads to more meaningful participation and better retention of information. This can translate into more effective decision-making, enhanced productivity, and better outcomes for businesses.

3. More Lucrative Deals

In-person meetings often yield higher financial returns than remote or hybrid formats. A recent survey found that 80% of respondents were against using video conferencing to close deals in 2024, reaffirming the financial and relational value of face-to-face interactions.

Why it matters: The ability to negotiate and finalize deals in person can result in more favorable terms and stronger agreements. The trust and confidence built during in-person meetings often play a crucial role in closing lucrative deals.

4. Tailored Experiences

In-person events allow for more customized and immersive experiences. Event planners can create environments that resonate deeply with attendees, which can result in positive memories and spark new knowledge that’s beneficial for both participants and their organizations.

Why it matters: Tailored experiences can lead to higher satisfaction and loyalty. Attendees who have memorable experiences are more likely to return and recommend events to others, amplifying the reach and impact of these gatherings.

5. Conversion of Online Communities

Converting online interactions into in-person experiences strengthens community bonds and fosters a sense of belonging. This transition can drive increased participation, collaboration, and innovation within communities.

Why it matters: Bringing online communities together in person can lead to increased loyalty and engagement, as well as a stronger sense of identity and purpose within the community. In-person events can also serve as a catalyst for new ideas and initiatives, helping to propel the community forward.

Learn how Navan’s Group Travel tool helps facilitators, travel planners, and executive teams organize offsites for corporate groups.

The Role of Business Travel in Company Growth

Companies are once again recognizing business travel as a key driver of growth, according to The State of Corporate Travel & Expense 2024, a report by Skift and Navan.

In 2019, 90% of travelers agreed that business travel was vital for company growth, and 80% believed in-person meetings were more effective than video chats. These numbers, which dipped during the pandemic, have now returned to pre-pandemic levels, instilling confidence in the power of business travel.

Another interesting trend to emerge over the last five years is employees’ growing enthusiasm for blended travel — a concept that combines business and leisure travel. Employers are increasingly supportive of employees extending business trips for personal time, sometimes even contributing funds to enhance their travel experiences.

Modern Travel and Expense Management

In the past, the traditional platforms that companies used to manage travel bookings and expenses often led to dissatisfaction among travelers, travel managers, and finance leaders due to their lack of user-friendliness and inability to support dynamic travel policies.

However, there is growing enthusiasm for modern platforms that integrate travel, corporate cards, and expenses. These platforms simplify payment processes and improve expense tracking. The use of corporate cards over personal cards has increased, benefiting both employees and finance teams by easing the reimbursement process and enhancing expense forecasting.

Here are some fundamental changes and how they enhance the value of business travel today:

1. Integrated Platforms: Modern T&E tools now combine travel booking, expense tracking, and corporate card management into a seamless platform. This integration streamlines processes, reduces administrative burdens, and improves compliance rates.

2. Enhanced User Experience: User-friendly interfaces and mobile apps have empowered travelers, making it easier for them to book trips, manage expenses, and access support. This sense of control and convenience increases satisfaction and productivity among employees.

3. Real-Time Data and Analytics: Advanced analytics provide real-time insights into travel spending, helping companies better manage budgets and optimize travel policies. This data-driven approach allows for more strategic decision-making.

4. AI and Automation: AI and automation have revolutionized the business travel experience by simplifying tasks such as expense reporting, receipt capture, and policy compliance. These AI-driven tools can flag policy violations and suggest cost-saving opportunities, significantly enhancing efficiency and reducing costs.

5. Personalized Travel Options: Modern tools offer personalized travel options based on employee preferences and company policies, which leads to a better travel experience while maintaining control over costs. This balance between employee satisfaction and cost management ensures a more satisfying travel experience.

6. Enhanced Security Features: Security enhancements, such as virtual cards and secure mobile payments, not only protect against fraud but also ensure safer transactions, providing a sense of security and peace of mind for both travelers and finance teams.

7. Sustainability Tracking: Many T&E tools now include features to track and report on the environmental impact of business travel. This capability is not just a feature, but a strategic tool that supports corporate sustainability goals and helps companies make more eco-friendly travel decisions that align with the growing focus on sustainability in the business world.

8. Seamless Expense Reimbursement: Faster, automated reimbursement processes reduce the financial burden on employees, who no longer have to wait long periods to get reimbursed for travel expenses. This improvement boosts morale and reduces frustration.

These advancements in T&E management tools have made business travel more efficient, cost-effective, and enjoyable. By leveraging these modern solutions, companies can maximize the benefits of business travel while minimizing the associated challenges.