DIn the past year, German companies sent their employees on business trips far less frequently than before the corona crisis. However, the average costs per trip rose significantly, as shown in the annual balance sheet of the Association of German Travel Management (VDR). “Less is more today,” said VDR Vice President Inge Pirner, summarizing the mixed findings.
According to this, around 8.4 million employees packed their suitcases on behalf of the company last year. This is a significant increase of 54 percent compared to the previous year. At the same time, the number is still 35 percent behind the 13 million business travelers in the pre-corona year 2019.
At 75.1 million, the number of business trips was 62 percent below the level of the record year 2019, when 195.4 million were counted. Business travelers from the public sector packed their suitcases more often than average: the growth rate here was 99 percent.
Quelle: Designer/Getty Images/Digital Vision Vectors; Infografik WELT
Only a few believe that the pre-crisis level will be reached again at some point. In a survey conducted by the association, well over 50 percent of companies stated that there would be fewer business trips in the long term. By far the most important reason given by the around 800 companies surveyed was that video and telephone conferences from providers such as Zoom now offer good alternatives. 70 percent also mention the sharp rise in costs.
Trend towards higher-value ticket classes and hotel categories
In fact, the average cost per trip rose by eleven percent to 371 euros last year. Compared to the pre-crisis year 2019, this is even a cost increase of 19 percent. One reason, in addition to the general rate of inflation, which is reflected above all in transport costs, is the trend towards higher-quality ticket classes and hotel categories.
During the pandemic, the mindset also prevailed in medium-sized companies that employees should at least be placed in business class for essential but potentially dangerous journeys. This has been maintained in many companies.
Source: Infographic WORLD
Business trips also take longer today, on average 2.4 days. The proportion of pure day trips, which was still 70 percent in 2019, fell for the first time. In 2022, only 45 percent of trips across all company sizes took place without an overnight stay. In the case of large companies with international business, every fourth business trip now lasts 4 days or more.
The reason for this lies in globalization: the number of overnight stays abroad almost tripled in 2022 compared to the previous year. Overseas destinations such as the USA have become increasingly important for German companies. After the strict corona lockdown was lifted, significantly more customers and business partners in China were visited again last year. Even more trips went to India, whose most important European trading partner is Germany. 1700 German companies are present on the subcontinent. India is the second most important business travel destination outside of Europe after the USA. In contrast, significantly fewer company employees traveled to Great Britain, which is apparently due to Brexit.
The transport and accommodation industry can usually compensate for the lower number of business travelers with the number of vacationers, which is increasing sharply again. Nevertheless, with the business travelers, a solvent customer group is missing – especially outside of the holiday season. Business travelers spent last year from 147 to 154 euros per person and day of travel. This is significantly higher than the average spending on vacation, which is 95 euros per person per day.
The bottom line is that the travel and accommodation industry has lost billions in sales. While the cost of German business trips in the pre-crisis year was EUR 55.3 billion, companies spent less than half that amount last year, at EUR 26.9 billion.
Quelle: Designer/Getty Images/Digital Vision Vectors; Infografik WELT
When companies are asked about the reasons why they will be reducing the number of employees traveling in the future, the first option mentioned is video calling. 70 percent refer to the high costs. In addition, many companies see the possibility of simply bundling appointments better. Climate protection is only mentioned in fourth place when it comes to the cancellation of travel applications. But social considerations and the balance between work and private life also play a role. Today, about one in four companies cites safety or health concerns as the reason.
There is still no reliable data on the CO₂ emissions caused by business trips. However, the European Union will soon make companies more responsible: in the coming year, the “Corporate Sustainability Reporting Directive” will oblige them to report more than before on sustainable action and management.
Change to the train, electric cars as rental cars
After all, 67 percent of companies already state that they pay more attention to sustainability in their business trips. According to a survey, 64 percent have already switched from plane to train on domestic German routes, and another 19 percent are planning this step. According to this, 46 percent already prefer to use electric cars as rental cars or in their own fleet. A further 31 percent would like to follow this trend in the near future. 42 percent paid a levy for CO₂ compensation, and another 27 percent intend to do so.
A statistical overview of the business travel segment is made more difficult by the fact that the boundaries to holiday travel are sometimes blurred. The option of “work and travel” is often given as an instrument for binding employees to the company: business trips can be extended as vacation trips. According to the VDR analysis, there is also an increasing number of options for taking family members with you.
Small and medium-sized companies are also becoming increasingly professional when it comes to organizing business trips. A company credit card is used partially or mainly as a means of payment in 74 percent of companies. According to the VDR analysis, 31 percent of the companies don’t touch their employees’ wallets at all. This pattern is similar in small and medium-sized companies to that in large companies: “If other payment methods were mentioned, it was mainly cash from the company’s treasury.”
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