Business travel has long been the engine driving global commerce, forging connections, and opening doors to new opportunities. Yet, as we navigate the post-pandemic landscape, the traditional business trip has morphed into something quite different. AI in business travel

Companies and travelers alike are redefining what it means to travel for work, and American Express‘s latest Amex Trendex report provides a deep dive into these transformative trends. From emerging travel destinations to the rise of AI, the report paints a picture of a business travel landscape in flux—where change is the only constant.

Emerging Destinations: Beyond the Usual Suspects

The Shift Toward Non-Traditional Hubs

When you think of business travel, cities like New York, London, and Tokyo probably spring to mind. However, the Amex Trendex report reveals a surprising shift: business travelers are now flocking to less traditional destinations. Cities like Princeton, New Jersey; Durham, North Carolina; and Southwest Michigan are emerging as the new hotspots for corporate travel.

Why These Cities?

What’s driving this change? Each of these cities has its unique appeal. Princeton, for example, is becoming a hub for AI research, thanks to the synergy between Princeton University and the New Jersey Economic Development Authority. Sacramento is pulling in tech talent with new airline routes and a massive airport expansion. And Honolulu, once seen as purely a leisure destination, is now a prime spot for corporate retreats. These shifts highlight a broader trend: business travelers are seeking out cities that offer not just business opportunities but a compelling lifestyle too.

Top 5 Emerging U.S. Business Destinations

1. Princeton, New Jersey: AI research hub.
2. Durham, North Carolina: Tech boom fueled by airport expansion.
3. Southwest Michigan: Mix of corporate investment and culture.
4. Sacramento, California: Tech talent magnet.
5. Honolulu, Hawaii: Exotic yet convenient for corporate retreats.

Blended Travel: The Work-Leisure Combo

What Is Blended Travel?

Blended travel, where business meets leisure, has skyrocketed in popularity post-pandemic. It’s the practice of extending a business trip to include some personal downtime—a concept that’s particularly appealing to younger generations like Millennials and Gen Z. AI in business travel

The Appeal of Blended Travel

Why the surge in blended travel? For one, it makes financial sense. According to Amex Trendex, 80% of business travelers love exploring their destination when traveling for work, and 85% of those who took a blended trip last year reported being more cost-conscious when planning their travel. When travelers are footing the bill for part of the trip themselves, they’re more likely to seek out cost-saving opportunities, from booking cheaper flights to staying in more budget-friendly accommodations.

The Employer-Employee Disconnect

However, there’s a notable disconnect between how businesses and travelers view their responsibilities when it comes to blended travel. While 80% of companies that allow blended travel believe their duty of care extends to both the business and personal parts of the trip, only 55% of travelers agree. This gap suggests that there’s still a need for clearer communication and policy definitions to ensure that both parties are on the same page.

Benefits of Blended Travel

• Cost-Conscious Behavior: Travelers tend to be more frugal when they’re paying part of the expenses themselves.
• Employee Satisfaction: The ability to mix work with leisure can significantly enhance employee satisfaction and well-being.
• Increased Productivity: A relaxed employee who enjoys their destination is more likely to be productive and engaged.

The Quest for Comfort: Willingness to Pay

Comfort Over Cost

As business travel evolves, so do the expectations of travelers. Comfort is now a top priority, and many business travelers are willing to dig into their own pockets to ensure a better experience. The Amex Trendex report found that while a large percentage of companies cover business class seats on longer flights (85%), 77% of business travelers have paid for a hotel or airfare upgrade out of their own funds or by using personal points.

Generational Differences in Spending

Interestingly, this trend is particularly strong among Millennials and Gen-Z, who are nearly twice as likely as Gen-X and Boomers to frequently pay for upgrades (30% vs. 17%). This willingness to invest in personal comfort extends beyond just upgrades. Many travelers get more excited about their trips when they can take advantage of airline or hotel loyalty perks. However, there’s a gap between what travelers desire and what companies are willing to cover. For instance, gym access is a top amenity sought by business travelers, but 47% of companies do not cover it, despite 27% of travelers considering it a must-have.

The Price of Comfort: What Are Travelers Paying For?

• Airfare Upgrades: Many travelers prefer to upgrade their seats for added comfort.
• Hotel Upgrades: Access to better accommodations or specific amenities often comes at a personal cost.
• Loyalty Perks: Benefits like free Wi-Fi, gym access, and complimentary meals are high on the priority list.

AI’s Growing Influence on Business Travel

The AI Revolution in Travel

Technology has always been a key player in business travel, and now, the influence of artificial intelligence (AI) is growing rapidly. The Amex Trendex report highlights that 82% of companies are now using AI to manage business travel, a significant jump from 69% the previous year.

How AI is Transforming Business Travel

AI is being used in various aspects of travel management, from policy management to booking travel, and even providing travel recommendations and contingency planning. For instance, AI can streamline the booking process, ensure compliance with travel policies, and offer personalized travel suggestions based on previous trips.

The Role of AI in Enhancing the Travel Experience

American Express has been at the forefront of using AI and machine learning to improve the business travel experience. Starting back in 2010, the company used AI for risk management processes, including fraud prevention and underwriting. Today, AI is also helping to personalize customer experiences, particularly for tech-savvy travelers and card members. The goal? To deliver personalized rewards and services at the traveler’s fingertips, making every journey smoother and more enjoyable.

Training and Adoption: A Must for AI Success

However, with the increased use of AI comes the need for proper training. The report found that more than half of the companies using AI for business travel have taken steps to train their employees on how to use these technologies effectively. This ensures that AI tools are used to their full potential, reducing the likelihood of errors and increasing overall satisfaction.

Key Areas Where AI is Making a Difference

1. Policy Management: AI ensures compliance with company policies.
2. Booking and Recommendations: AI personalizes the booking experience and offers tailored suggestions.
3. Risk Management: AI enhances security and reduces fraud in business travel.

The Rise of Personalization in Business Travel

The Demand for Tailored Experiences

As business travelers become more discerning, the demand for personalized experiences has skyrocketed. Companies are increasingly expected to cater to individual preferences, whether it’s through customized travel itineraries, personalized loyalty rewards, or tailored in-flight services.

How Companies Are Responding

To meet these demands, many companies are leveraging data-driven insights to offer more personalized services. For instance, frequent travelers might receive tailored offers based on their past behavior, such as upgrades, exclusive access to lounges, or discounts on preferred airlines.

The Benefits of Personalization

• Enhanced Satisfaction: Personalized experiences lead to higher traveler satisfaction.
• Loyalty Building: Tailored services can foster brand loyalty among business travelers.
• Increased Efficiency: Personalized recommendations can save time and make the travel experience more seamless.

The Future of Business Travel: A Look Ahead

Adapting to a Changing Landscape

As we look ahead, it’s clear that business travel is not just recovering from the pandemic—it’s evolving in new and exciting ways. From the rise of emerging destinations to the growing popularity of blended travel, the landscape is shifting. And with the continued integration of AI and a focus on personalization, the future of business travel promises to be more efficient, enjoyable, and tailored to individual needs than ever before.

The Role of Technology

Technology, especially AI, will continue to play a critical role in this evolution. As companies adopt more AI-driven tools, the way we plan, book, and experience business travel will change dramatically. AI’s ability to streamline processes, reduce costs, and enhance the travel experience will be a game-changer. AI in business travel

Preparing for the Future

To thrive in this new era, companies and travelers alike need to stay ahead of the curve. This means embracing new technologies, being open to change, and continuously looking for ways to improve the business travel experience.

Key Takeaways for the Future

1. Stay Agile: Flexibility and adaptability will be key in navigating the changing landscape.
2. Embrace Technology: AI and other technologies will be essential in improving the travel experience.
3. Focus on Personalization: Tailored experiences will set companies apart in a competitive market.

Conclusion: Embracing the New Normal in Business Travel

The world of business travel is undergoing a significant transformation. As emerging destinations rise to prominence, blended travel becomes the norm, and AI continues to revolutionize the industry, one thing is clear: the business trip of the future will be vastly different from what we knew before. But with these changes come new opportunities—opportunities to make business travel more efficient, enjoyable, and aligned with the needs of modern travelers. American Express, with its deep understanding of these trends and its commitment to innovation, is well-positioned to lead the way in this new era.

As we look forward, it’s an exciting time for business travel. Companies that adapt to these changes will not only survive but thrive, offering their employees travel experiences that are both productive and enjoyable. And for the business travelers themselves, the future promises a more comfortable, personalized, and technologically-enhanced journey.

Enjoyed this? Let your friends know!