The future of business travel in a post-pandemic world
Economy and WorldArticleMay 26, 2023
The workforce is mobile again. Your people are likely traveling domestically and abroad to in-person training, team meetings, client visits, conferences and other events. But the world, and the international business travel environment, looks very different now than it did in the years before the COVID-19 pandemic. As a result, your travel risk management programs and duty-of-care policies need to look different now, too.
Coming back to a different world
The World Health Organization announced the end of COVID-19 as a public health emergency on May 5th, and May 11th marked the official conclusion of emergency measures in the United States. International business travel already had been rebounding, but the recent declarations are another symbolic shift in the transition to post-pandemic, “new normal” environments.
In 2020, most business travel was relegated to C-suite executives. As the world started reopening, leisure travel rebounded first, but business travel began increasing again in 2021 and 2022. There has been a tremendous increase from last year to now, and business travel is expected to fully rebound by the end of 2024. According to the U.S. Travel Association, outbound travel from the U.S. has performed remarkably well this year,1 and according to the Global Business Travel Association, business travel buyers estimate that their international bookings have recovered to 63% of pre-pandemic levels.2
However, business travelers hitting the roads, rails and skies again are encountering a much different global environment compared to 2019. According to the World Economic Forum’s 2023 Global Risks Report, produced in partnership with Zurich Insurance Group Ltd. and Marsh McLennan, conflict and geo-economic tensions have triggered deeply interconnected global risks. Several of the top global risks cited in the report — including erosion of social cohesion and societal polarization, widespread cybercrime, geopolitical confrontation, and natural disasters and extreme weather events — all have a direct impact on the international travel landscape.
Although business travel is generally quite safe, things can happen in such a volatile environment. From lost passports to earthquakes, the spectrum of things that can go wrong is wide. On one end, travelers caught in the wrong place at the wrong time may need evacuations from war zones or locations affected by protests, terrorist attacks and natural disasters. On the less dramatic end, risks are just as present, and in many cases are increasing. Risks vary from country to country and travel risk managers are seeing more street crime, cybercrime, altercations with aggressive and unruly travelers. In addition, there are also issues with criminal rings and corrupt authorities that target tourists and business travelers.
Travel trends create more risk
Businesses are eager to send their people back out to take advantage of international opportunities, but evolving travel trends and habits are leading to new and challenging risks.
Cost is a big influencer. Travel has become extremely expensive, which means companies are extending the length of trips. Finance teams keeping a close eye on budgets are seeking less expensive accommodations. But cutting corners can create more dangerous traveling conditions and potentially lead to bad outcomes.
The rise of “bleisure,” extended trips that blend business and leisure activities, also creates more complex risk scenarios, especially when additional downtime and family members are involved.
Sustainability trends also are affecting business travel planning. As companies consider their carbon emissions and look for ways to reduce their environmental impact, they may encourage alternatives to air travel without considering the consequences. Rail travel, for instance, presents different risks. Train stations are often less secure than airports, and pickpocket episodes and robberies occur more frequently on trains. Scooters might seem like an easy and environmentally friendly way to get around a city, but accident and injury threats exist there, too. And encouraging electric vehicle rentals means travelers need to have basic knowledge about charging and operating those vehicles.
COVID-19 can’t be completely forgotten, either, as it still creates lingering issues, especially in overseas hospitals. For instance, it’s still common for travelers who enter a clinical setting with a minor injury or ailment to get sick with COVID while being treated.
Keeping your people safe and supported
The travelers being sent out to navigate this new environment have changed, too. Although people are excited to travel again for leisure, many are nervous when it comes to business trips. In fact, many companies are struggling to find people willing to travel overseas or to certain locations. Experienced travelers are rusty, young people are fearful, and female travelers and minority groups have concerns about their safety and other specific risks.
In a February 2023 Opinium survey3 of UK business travelers commissioned by World Travel Protection, the top 10 travel concerns were:
- Travel disruption and delays (76%)
- Catching COVID and having to isolate (69%)
- Losing a phone or laptop, being hacked (68%) and using an unsecured Wi-Fi network (68%)
- Geopolitical threats, such as war, terrorist acts or tensions between countries (67%)
- Being a target of crime (67%)
- Being harassed or disrespected because of gender or sexuality (62%)
- Losing a passport (61%) and being caught in a political protest (61%)
- Being caught in a natural disaster (58%)
- Experiencing high anxiety (58%)
- Experiencing racism (57%)
Younger travelers were more concerned about the risks of business travel than older travelers, with 79% concerned about catching COVID; 77% concerned about geopolitical threats; and 72% concerned about being caught in a natural disaster.
With anxiety running high, businesses need to be prepared to support their people and address their concerns. In many cases, employees are going back to employers to make sure they can be counted on to deliver assistance for dangerous scenarios that may arise and to provide resources to manage mental and emotional stress.
Many organizations are responding by taking an employee-centric approach. In addition to reviewing destinations and activities, they’re gaining insights on the ethnicity, age, fitness, gender, sexuality, mental health and experience levels of their traveling population — and they are educating, or re-educating, their people to better prepare them to deal with unexpected situations and navigate the new environment.
Proactive, holistic approach to mitigating risk
To develop travel risk management programs that account for emerging risks and deliver the support employees are seeking, start with a holistic review of your policies — all the way down to the basics. Think about what went into your risk assessment and risk treatment plans before the pandemic and how the landscape has changed. Look for gaps, clarify gray areas and revisit your policies to ensure you’re meeting duty-of-care requirements in this new environment.
The International Organization for Standardization (ISO)’s framework for travel risk management, ISO 31030, can help you take actionable steps to evaluate and manage your travel risks effectively. The guidance provides a formal approach to the development, execution and evaluation for an organization to expose its risk gaps. It also covers policy development, program implementation, threat identification, risk assessment and mitigation strategies.
Also, keep in mind that balance is key to developing a successful employee-centric approach. Duty-of-care policies with vague motherhood statements about supporting employees can lack substance. But overly directive guidance can be difficult to get approved through legal departments. Aim for balanced policies that fulfill your duty-of-care responsibilities while also educating employees about making good choices when on the road.
Tap into advanced tools and resources
There isn’t a one-size-fits-all approach to travel risk management. Implementing agile and robust solutions can help you assess and mitigate your organization’s unique travel risks.
Digital capabilities for tracking and communicating with travelers are advancing. Apps also can identify and monitor nearby incidents, such as a mugging or a flood, and provide real-time updates so itineraries can be quickly adjusted. Travel service providers are now providing higher-quality intelligence, security expertise and data that can be customized to highlight the risks you’re most concerned about and the way the information is delivered to travelers.
But don’t rely on technology alone. Provide fundamental learning resources and training to employees before they start traveling. Consider e-learning modules, for instance, which can be customized to your audience and needs. Spend more time on level-setting and pre-travel briefings to help your travelers understand the new environment. And bring in outside expertise when you need it. Pre-trip consultations with experts who can investigate locations from a security and medical standpoint can be lifesaving.
There’s much to consider in this new environment, and travel risk managers play an increasingly important role in their organizations. Building your knowledge and digital capabilities, focusing on doing right by your people and filling gaps in your policies will help keep your travelers safe and help your business mitigate emerging travel risks.
Learn more about World Travel Protection.
Learn more about International Programs from Zurich.
Andy Zoller is the U.S. Head of International Commercial Insurance at Zurich North America, where he's responsible for Zurich's holistic international value proposition and go-to-market strategy.
Rodger Cook is the General Manager of Global Security Services at World Travel Protection, a wholly owned subsidiary of Zurich Insurance Group Ltd.
1 Szyf, Aaron. “International travel’s gradual return in an increasingly competitive global market.” U.S. Travel Association. 05 May 2023.
2 Global Business Travel Association. “GBTA Industry Poll Reveals Key Drivers Poised to Shape the Path Ahead for Global Business Travel.” 26 April 2023.
3 Gill, Robert. “Younger travellers more worried about risks of business trips.” Business Travel News Europe. 22 March 2023.