The increased global turmoil of recent months, with power struggles between the USA/CHINA/INDIA/BRICKS, ongoing conflicts, and the experiences of climate change with heatwaves, droughts, heavy rainfall, hurricanes, and storms, is expected to continue into 2024. Additionally, the possibility of new pandemics looms, creating increased uncertainty for your company’s travelers.
At the same time, we are witnessing the effects of AI, improved video capabilities, virtual and augmented reality, and now AI-Pin (HERE), which will explode communication possibilities, forcing companies to rethink their travel policies and communication strategies.
Furthermore, these challenges offer your company the opportunity to initiate changes that will strengthen your business:
SUSTAINABILITY: Each Danish citizen emits 12 tons of CO2 annually, and a trip to the USA alone increases that individual’s carbon footprint by 20%. Your customers will intensify their focus on your carbon emissions, and the EU already demands that you disclose your data and actions from 2025 onwards.
ECONOMY: Your company is already feeling the consequences of rising energy prices and inflation. Transportation and accommodation expenses have already increased by 16% since 2019, and this trend is expected to continue in 2024 due to increased taxes. Denmark’s tentative efforts to tax flights will hopefully expand and be used to offset the 4-6% of global CO2 emissions represented by aviation. In addition to direct transportation costs, expenses for insurance, vaccinations, and other indirect costs have already risen and will continue to increase significantly.
THE JOURNEY ITSELF: Climate issues, strikes, and unrest are leading to worse travel conditions for your travelers. Flights are rerouted to avoid conflict zones, and weather conditions, strikes, and technical failures make travel more cumbersome and demanding.
ADMINISTRATION: Most companies already have a capable travel manager and reliable suppliers. However, in 2024, the rapid advancements in technology, transportation, and regulations will make it challenging and time-consuming just to stay updated and informed about these changes. Compulsory changes will impact and influence each supplier, and new and unknown players will conquer the travel market, a trend that is already underway and will accelerate in the coming years.
HOW CAN YOUR COMPANY PREPARE FOR 2024?
Due to cultural and social factors, physical travel cannot be entirely avoided. Many cultures demand physical presence, and companies with multiple offices in different countries exchange better knowledge and opportunities face to face.
Therefore, you should create a new travel policy based on the experiences you have already gained with your customers, suppliers, and your offices. Conduct a survey and form workgroups with experience in your travels. Start from the assumption that physical travel is not always necessary. Here are some areas to consider:
• Which video systems and other communication solutions are best for your company internally and externally?
• Should physical trips include better travel conditions (business class and better hotels) and the opportunity for slightly longer stays for sightseeing?
• Is insurance and security sufficient for all the destinations you visit? Illness, for example, can lead to family members traveling to the destination, resulting in significant additional costs.
• Which apps are suitable for each destination and local knowledge?
• Which suppliers align with your sustainability and security strategy?
• Allocate resources to evaluate your existing travel suppliers and the market.
• Make travel booking easy and assist with some questions before and a brief survey after the trip. For example:
Before the trip:
o Are there other customers or partners, you can visit at the destination?
o What is the return on investment (ROI) for this trip?
o What is the risk level at the destination?
After the trip:
o Are you satisfied with the suppliers?
o Are there knowledge about the destination and the people you visited, that you would like to share with your colleagues?
o Are you aware of better suppliers for this destination?
We are, of course, available, and willing to help. We can also be your part-time partner, ensuring updates and knowledge sharing in the field of travel.
