As the role of CFOs continues to evolve, business travel remains a crucial element for connecting with stakeholders, building relationships, and collaborating with dispersed teams. In 2024, CFOs seeking to expand travel budgets should be attuned to shifting industry dynamics, according to a state of corporate travel report by expense travel and corporate card provider Navan.
The report highlights an intriguing trend where 81% of business travelers express a desire for a financial incentive if they contribute to cost savings—an expectation that only 67% of companies currently meet. This underscores the need for organizations to align their travel policies with evolving employee expectations.
Despite ongoing advancements in virtual collaboration, the majority of travelers anticipate hitting the road in various capacities over the next 12 months. A significant portion (34%) expects to travel between three and five times, while 27% plan on traveling between six and ten times in 2024.
Beyond conferences, executives highlight the importance of regular offsite in-person connections with coworkers, with 77% expressing enthusiasm for such interactions. This figure has seen a consistent 7% increase over the last two years, indicating a growing willingness among employees to engage in face-to-face collaboration as the pandemic recedes.
The concept of "bleisure," combining personal and professional travel, continues to be relevant, with over 68% of travel and finance managers still covering some or all of their employees' personal expenses during bleisure trips. However, challenges persist, as 55% of travelers report their companies providing some stipend for personal time during travel, leaving room for addressing issues like travel restrictions, associated costs, and injury liability.
In terms of cost optimization and expense management, CFOs may witness an increasing adoption of artificial intelligence (AI). Nearly 60% of travelers express trust in AI for handling "straightforward" tasks related to business travel. However, only 30% are comfortable trusting AI across all aspects, including flight changes, rental car bookings, and loyalty program management.
While efficient and personalized technology is seen as beneficial, the data suggests that frequent business travelers still prefer to retain control over the majority of their travel plans. As organizations navigate the complexities of corporate travel in 2024, aligning policies with employee expectations and leveraging technology for streamlined processes will be key for CFOs overseeing travel budgets.
