For the first time, American Express identified five trending destinations on the rise for business travel in the U.S. based on commercial customer spending: Princeton, NJ; Durham, NC; Southwest Michigan (Kalamazoo and Grand Rapids); Sacramento, CA; and Honolulu. The “Amex Trendex: Business Travel Edition” explores business traveler access to amenities at the airport or their hotel, the evolution of travel policies and the state of business travel technology.
Five Trending Destinations
Princeton, NJ: After a few years of economic challenges, New Jersey was named the most improved state for business in 2023 by CNBC and, according to Choose New Jersey, it helped 37 companies relocate or expand to the “Garden State” last year. Governor Phil Murphy and Princeton University announced ambitions to be the next AI hub through a new collaboration with the New Jersey Economic Development Authority that intends to bring together researchers, industry leaders, private sector companies and other collaborators to explore this rapidly emerging technology.
Sacramento, CA: California’s capital has witnessed substantial growth in the semiconductor and life sciences sectors, with some talent drawn to the city over Silicon Valley and other parts of California because of the relative affordability. With several major airlines adding new direct routes to Sacramento International Airport and a $1.3 billion expansion project beginning this year, getting to the city is likely to be even easier.
Durham, NC: One of three cities that make up “The Triangle” region historically known for biotech innovation, Durham has a strong downtown and recently welcomed some of the biggest tech companies in the world, generating thousands of tech jobs and making the city a top destination for anyone that does business with the tech sector. Raleigh-Durham Airport was also the fastest-growing U.S. airport in 2023 according to the Department of Transportation and added four new airlines, 25 new destinations and 49 new routes, expanding the options for "Triangle" travelers.
Southwest Michigan (Kalamazoo and Grand Rapids): This region has seen corporate investments across segments in recent years, driving substantial growth in the “Great Lakes State.” The region currently has over $5.5 billion of capital money invested in it, with projects ranging from upgraded corporate offices, event centers, and more. Both cities offer world-class beer and craft beverages, art and culture, beautiful and accessible trails for biking, running or walking and more.
Honolulu, HI: Travel to Hawaii rebounded after the worst of the pandemic, with tourism spending up 18.5 percent in 2022 vs. 2019, and while last year’s fires in Maui set tourism back across the state it’s expected to level out in 2024, according to Hawaii’s Department of Business, Economic Development and Tourism. With a wide range of places to stay, entertain and meet, Honolulu is a popular destination for incentive trips or company retreats that offers the appeal of an exotic destination with the conveniences of working in the United States.
Other Survey Results
Based on a survey of 1,000 U.S. business travelers and 500 U.S. business travel decision makers, American Express found:
Even with business-class seats mostly covered, travelers are willing to pay out of pocket for an upgrade. The Amex Trendex found that business travelers are looking for comfort and willing to pay for it. While many companies pay for business class seats on longer flights (85 percent) at least on a case-by-case basis, more than three-quarters (77 percent) of business travelers have paid for a hotel or airfare upgrade for a work trip out of their own pocket or with personal points. Millennials and Gen Z are almost twice as likely as Gen X and Boomers to do this frequently (30 percent vs. 17 percent).
Travel amenities are important to business travelers, and eight in 10 (80 percent) get more excited about a trip when they can take advantage of airline or hotel loyalty perks. For the most part, amenities like in-flight Wi-Fi (78 percent) and early hotel check-in (80 percent) are covered by companies at least on a case-by-case basis. Gym access is the top amenity that business travelers are looking for but that companies are least likely to cover: 27 percent of travelers named it a “must-have” but nearly half (47 percent) of companies do not cover it.
Blended Travel Makes Travelers More Cost-Conscious
Blended travel has always appealed to business travelers, who like to explore their destination when traveling for work (80 percent), but the Amex Trendex found that there’s a tangible benefit for companies too: among travelers who took a blended trip in the past year, 85 percent are more cost-conscious when planning one because they will be paying for part of it. Most companies surveyed (80 percent) who allow blended travel report that their duty of care covered both the personal and business part of the trip, as 55 percent of travelers surveyed believed they should be responsible for the personal part.
The rise of remote work means that some employees are commuting longer yet less frequently or even on an ad-hoc basis, but almost three-quarters (72 percent) of companies with hybrid or remote employees expect them to come to the office more frequently than they did last year. This leaves companies grappling with what’s a commute and what’s reimbursable travel to the office, and they are currently split on what to cover: just under one-third (32 percent) cover travel costs for remote or hybrid employees to travel to the office, 37 percent may cover on a case-by-case basis, and 30 percent don’t cover at all.
Business Travel Tech Has Improved
The automation of expenses and T&E spend management has been transformative for business travelers and companies alike. Expense management, historically the biggest headache for business travelers, has improved: according to business travelers, doing expense reports is easier than it was five years (49 percent) or even one year ago (44 percent).
AI has the potential to make even more parts of the travel experience better and companies are increasing their adoption of it: 82 percent of companies surveyed are using AI to manage business travel, up 13 percent from last year (69 percent). More companies are using it for travel and expense policy management (75 percent vs. 61 percent), booking travel (61 percent vs. 47 percent), and travel recommendations, support or contingency planning (57 percent vs. 41 percent) compared to 2023. More than half (54 percent) of companies using AI tools for business travel have taken the step to train their employees on how to use them, which may help to mitigate concerns some companies have about proper use of AI.
“Business travelers and companies get immense value from business travel. Travelers are taking advantage of amenities to make their journeys more convenient and comfortable, corporate policies are adjusting to trends like remote work, and tech investments are improving expense management,” Fernando Iraola, executive vice president and general manager, global and U.S. large enterprises, American Express, said in a statement. “Business travel continues to drive connectivity among colleagues and partners, drive business for companies, and is even helping to fuel economic growth in emerging business travel markets.”
The business traveler survey was conducted among a sample of 1,012 respondents who are employed full time, traveled by air for work two or more times in the past 12 months and submit their own travel expenses. The business travel decision-maker survey was conducted among a sample of 502 respondents who are employed full-time as business travel decision makers for companies with 50 or more employees. Both online surveys were live on June 7-14.
The Trending Business Travel Destinations were selected based on American Express commercial customer transactions at U.S. hotels, looking at growth over a 12-month period between April 2022 and March 2023 and April 2023 and March 2024.
This story originally appeared on www.hotelmanagement.net.
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