5 Major Costs of Traditional Approaches to Business Travel

Business travel is back on the agenda. But many companies are still relying on outdated approaches that create hidden risks.This insight explores the key reasons why business travel training is becoming essential for modern organisations — and what it can help you avoid.

For others, those responsible for people and safety, business travel training is becoming an essential part of their business operation. Employees are now back to travelling to meetings, conferences and exhibitions and visiting remote offices.

Recent research highlights the urgent need to get this right:

  • 92% more likely to be obese – Employees who travel for work 21+ nights per month are 92% more likely to be obese than those travelling 1–6 nights (Harvard Business Review).
  • 83% of women experience safety concerns – 8 in 10 women reported feeling unsafe or encountering a safety issue during business travel (Global Business Travel Association).
  • $3.9 million average cost of a data breach – Working outside secure office environments while travelling raises cyberattack risks, with each breach costing an average of $3.9 million (IBM).
  • 34% report anxiety and stress – Over one-third of business travellers say work travel negatively affects their mental health, with 29% citing exhaustion and 30% homesickness (Travel Daily News).
  • Only 18% of travel policies address women’s safety – Despite the risks, fewer than 1 in 5 organisations have travel policies that account for female-specific safety concerns (Forbes).

 

However, forward-thinking companies have been investing in better travel management and business travel training for some time.

Even before the outbreak of Covid-19, business travel was a major contributor to work-related stress. That is far from the only problem caused by some traditional approaches to work travel.

Why Business Travel Training Matters

In the course of developing resources to help organisations improve their employees’ travel-preparedness, we’ve learned that five aspects of traditional approaches to travel have the potential to undermine an organisation’s values and performance. Below we’ve shared an overview of these aspects, to provide a starting point for HRs and travel managers looking at this issue.

1. Business travel impacts employee wellbeing

Writing in the Harvard Business Review, epidemiologist Andrew Rundle reports his finding that frequent business travel is associated with a wide range of negative health outcomes, including obesity, anxiety, depression, alcohol dependency and insomnia.

This is unlikely to come as a surprise to anyone familiar with the strains of frequent long-distance travel. Lost sleep, unhealthy meals, greater difficulty maintaining healthy routines. While Covid-19 has highlighted the link between travel and infectious disease, it has always been the case that frequent travellers have an increased exposure to disease.

For companies in the U.S, this means higher employee insurance claims. For companies everywhere, it means reduced wellbeing and lost productivity.

2. Business travel raises safety concerns, and the risk is not spread equitably

Frequent business travellers are more vulnerable to crime. These risks, and the associated stress, impact women more severely than men. A survey by the Global Business Travel Association found that as many as 8 in 10 women have experienced safety concerns during work-related travel. Organisations determined to make their working environments safe for all their employees cannot afford to ignore this disparity.

3. Business travel can undermine data security

Business travel frequently involves working outside the office, whether it’s at a hotel, airport or client site. Beyond the virtual security net of the office, employees are more vulnerable to cyber-attack of all kinds, from phishing to hacking.

These attacks can potentially be very costly to their employers. A recent study by IBM found that the average cost of a single data breach is $3.9 million.

4. Business travel has an impact on a company’s reputation

Employees travelling on business represent their organisation wherever they are. When your employee arrives at a client meeting relaxed and fresh, they’re likely to make a better impression than if they arrive exhausted from a red-eye flight. Similarly, employees who are prepared to navigate cultural differences are better placed to avoid giving offence.

More broadly, the way an organisation as a whole approaches travel can be leveraged to reputational advantage. Taking care of your carbon footprint can strengthen your brand and create good will.

5. Business travel impacts employee recruitment and retention

Given the health and wellbeing issues raised above, it’s not surprising that frequent business travel, if it’s not properly managed, can push employees to look for alternative roles.

Conversely, where business travel training is well-managed, and employees feel prepared and supported, frequent travel can be a perk which helps organisations to attract and retain talent.

How to Deliver Effective Business Travel Training

A two-pronged solution can tackle all these problems. The first prong is effective travel management: organising employee travel to avoid the worst impacts. The second prong is effective business travel training. There are lots of ways to implement this, but we’re advocates for interactive elearning tools, which are engaging and empowering as well as informative.

At Real Projects, we’ve been putting together a suite of business travel training courses which any organisation can use to guide their people towards safer, smoother business travel. You can see our suite of courses by contacting hello@realprojects.co.uk to arrange a demo.

You can also explore our off-the-shelf elearning library for ready-made training that fits your LMS.

Business Travel Training: FAQs

What are the major forms of costs facing a business?

Major business costs include wages, rent, raw materials, travel, tech, insurance, training, and marketing. These fall into fixed costs (don’t change) and variable costs (change with activity levels).

What is the travel cost approach?

It’s a method for estimating value based on how much people spend to reach a location or event. In business, it’s used to measure the cost of travel for staff and calculate ROI on travel activities.

What is the biggest expense when traveling?

The biggest travel costs are usually flights, followed by hotels. For businesses, costs also include meals, transport, insurance, and time away from work.

What is the cost of traveling?

Business travel costs vary by distance, location, and length. On average, a domestic business trip costs over £1,000, and an international one can exceed £2,500 per trip per employee.

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