A global economic recession knocking on everyone’s front door is a major threat to the recovery of the travel industry next year. Increasing interest rates, and rising energy and food prices has resulted in higher transport, accommodation and staffing costs. For the travel industry, we are already seeing airline ticket and hotel prices skyrocket as a result.
These costs are passed onto consumers who are equally affected by higher costs of living – and doing business. A cost-of-living crisis will undoubtedly lead to protest movements, civil unrest and travel-disruptive labor action.
There may be storm clouds on the horizon, but it’s not enough to send us back to March 2020. A survey by Destination Analysts found that nearly 75% of American respondents believed travel was a “worthwhile” investment, even if the economy were to contract.
Yet business travel will continue to come under scrutiny as companies double down on expenses to ensure ROI and work to meet increasingly important sustainability goals.
Business travel will continue to adapt in 2023 – travelling during off-peak times, more purposeful international meetings, swapping air for rail transport for regional destinations and using more price comparison tools.
Trip approval tools, long buried away and coupled as part of expense platforms, saw a resurgence during the pandemic and will continue to be necessary. With the growth of administrative hurdles and destination requirements, it has never been more important for businesses to have an up-to-date view and effective travel management as we venture forward into 2023.