Business travel: attention to costs and ESG factors reduce them in one out of two companies

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In Europe, business travel is declining sharply in almost one in two companies (44%). This is what emerges from the International People Mobility Report by Aon, a multinational professional services company, which surveyed 400 companies in 18 industrial sectors. If in the past years, the well-being and safety of employees represented the key elements influencing mobility in the workplace, today the important factors have become first of all costs and then ESG factors. Only in third place are workers’ well-being and safety. The cause? It is mainly due to factors such as financial stability and other geopolitical issues.

The impact of Covid and geopolitical crisis

“While the daily impact of Covid is less acute in most regions, new critical issues have emerged such as the situation in Russia and Ukraine, the energy crisis, global inflation and talent shortages. All these factors are shaping the near-term future of international mobility needs,” explains Michel Teunisse of Aon’s International People Mobility team. Giuseppe Faragò, chief commercial officer of Aon adds that «recognizing the new needs of the workforce when they are away or abroad is a fundamental step in understanding the current world of work and how it will change. Companies must guarantee an adequate level of occupational safety even in these cases». Among the important things to foresee are certainly «insurance solutions ranging from business travel policies with 24/7 medical assistance and travel inconvenience coverage, to support programs for workers residing abroad on behalf of Italian multinationals», he continues Faragò.

Remote work

Data from the Aon report also shows significant changes in immigration policies affecting global mobility. For example, some countries could become more restrictive in terms of immigration, while others introduce policies to attract more skilled workers and entrepreneurs. Working from a tropical island is less common and even more complicated than it was during the pandemic. Governments have enacted laws and updated policies regulating remote working internationally, while employers have become less flexible with remote workers. 50% of employers say international remote working at their company is an option, down from 63% last year. There was significant growth in travel opportunities across every function between 2022 and 2023 corporate. Travel no longer focuses solely on business and executive needs, but recognizes other important aspects of business, such as education and training. Despite this, there are limits: for example, almost one in five organizations (19%) has not yet defined when to reintroduce travel for training. Other solutions are preferred to travel, such as videoconferences.