According to a recent survey, business travel is on the rise in India, with 67% of Indian businesses expecting an increase in corporate travel in 2023. Furthermore, a staggering 77% of businesses are planning to boost their travel budget for the same period, compared to the previous year.
The survey, which assessed the travel habits and preferences of over 500 Indian businesses, revealed that 79% of respondents rely on business travel data analytics to streamline travel booking and expenditure processes. This highlights the increasing significance of technology in the travel sector.
In the wake of the pandemic, innovation in travel technology has become a priority. As indicated by the survey, 43% of financial decision-makers consider the implementation of improved software for expense and travel management as a crucial innovation.
Regarding payment methods for travel expenses, the most common approach, adopted by 66% of companies, is to maintain company accounts with third-party booking systems. However, a majority of businesses (61%) reported using multiple payment methods, with 57% providing employees with company credit cards for travel expenses.
The survey, titled ‘Revival of business travel: An India perspective,’ was conducted by American Express India in collaboration with the Centre for Economics and Business Research (Cebr). Focused on larger businesses, the study aimed to shed light on the resurgence of business travel in the country.
Key findings from the survey include:
- Approximately 53% of businesses revealed that over half of their employees undertook international or domestic work trips in the second half of 2022.
- Employees from government/public sectors, marketing, sales, real estate, professional services, and pharmaceuticals were identified as the leading groups engaging in work-related travel. Notably, 64% of government or public sector employees embarked on international or domestic work trips.
- Despite the rebound, the virtualization of meetings and events remains a factor inhibiting a complete recovery of business travel.
- Attending, hosting, or presenting at conferences, presentations, or events emerged as the primary reason for business travel, selected by 41% of businesses.
- Mumbai was the most frequently visited city for domestic business trips (50% of respondents), while the United States (44% of respondents) emerged as the top international destination.
- Agriculture, manufacturing, construction, utilities, and engineering industries topped the list with the highest average travel budgets, with each business allocating an average of INR 70 lakhs per year.
- A total of 92% of businesses have an existing travel policy, and an additional 6% are in the process of formulating one. When asked about the components of their travel policy, 46% of businesses prioritized cost limits for bookings, including hotels, airfares, and ground transportation.
- Financial decision-makers also mentioned considering special exceptions or rules for more expensive cities (43%) and including routes and approval processes for trips exceeding typical limitations (43%) in their travel policy.
Manish Kapoor, Vice President and Head of Global Commercial Services (GCS) at American Express Banking Corp., India, commented on the survey report, saying, “The sentiment is upbeat for corporate travel in India. While the past two years resulted in a temporary decline in business travel, domestic travel has resumed and almost surpassed the pre-pandemic level. International travel is also picking up, and we can expect a sustained recovery. With increased average ticket prices expected to remain high in the medium term, Indian companies will be exploring technologies and should adopt smarter solutions for better cost efficiencies.”
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