Business Travel Expected to Rebound in India in 2023: A Report by American Express and Cebr
The COVID-19 pandemic has brought about a significant decline in business travel worldwide, including in India. However, as the world adapts to the pandemic and vaccination rates increase, businesses are showing signs of a rebound in travel. According to a recent survey report titled “Revival of business travel: An India perspective,” commissioned by American Express and conducted by the Centre for Economics and Business Research (Cebr), 67% of Indian businesses expect a rise in business travel in 2023. Additionally, 77% of businesses are expecting to increase their travel budget in 2023 as compared to 2022.
The Role of Technology
One of the significant findings of the report is that technology has become essential for the travel sector. Around 79% of Indian businesses surveyed use business travel data analytics to assist with travel booking and expenditure. The travel technology sector is continually innovating, and in the post-pandemic period, 43% of financial decision-makers surveyed said that the use of better software to manage expenses and travel is a key innovation.
Increase in Travel Budget
The report reveals that 77% of businesses are planning to increase their travel budget in 2023, showing a positive outlook for the travel industry. According to Manish Kapoor, Vice President and Head, Global Commercial Services (GCS), American Express Banking Corp, India, “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.”
The most common method used by Indian companies to pay for travel expenses is through company accounts with third-party booking systems, used by 66% of businesses. However, most companies reported using multiple methods, with 61% allowing employees to pay and expense and 57% providing corporate credit cards for travel expenses.
Overall, the report suggests a positive outlook for the business travel industry in India. With the rebound of domestic travel and the gradual pick-up of international travel, businesses are optimistic about a sustained recovery. The role of technology in managing travel expenses is becoming increasingly important, with companies adopting smarter solutions for better cost efficiencies.