Will reducing emissions impact corporate travel?

A growing number of companies have demonstrated that they can achieve their objectives seamlessly by substituting in-person meetings with video conferencing

Corporations have once again initiated a shift in employee mobility, and it is only a matter of time before travel expenses return to 2019 levels. However, the landscape of corporate travel today is markedly different from four years ago.

Key takeaways

• The introduction of IATA's new distribution capability (NDC) and direct airline bookings has placed significant strain on intermediaries, leading to the emergence of new players in the market. Additionally, technologies such as personalization and generative AI have heightened the expectations for travel providers;
• Another notable shift is in the allocation of travel budgets, including the use of a corporation's air travel funds. Many large corporations have not allocated the same percentage of revenue to travel as they did in the past.
• One of the key challenges to the recovery of corporate travel is sustainability. Many Fortune 1000 companies have publicly committed to reducing greenhouse gas (GHG) emissions and have made pledges towards initiatives such as science-based targets (SBT) and limiting Scope 3 emissions.
• Reducing air travel is a direct path for corporations to cut GHG emissions and costs. Evaluating each trip's necessity and environmental impact helps companies make informed choices. While not all sustainability actions yield immediate cost savings, such as opting for direct flights or eco-friendly accommodations, when combined, these measures can reduce the need for overall trips.

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