Business travel has always been the backbone of the global economy, connecting companies to customers, partners and new opportunities. However, as the world continues to adapt to post-pandemic realities, the business travel landscape is undergoing significant transformations.
American ExpressThe latest issue of Amex Trendex highlights these changes, offering insights into emerging destinations, evolving travel policies and the role of technology in improving the business travel experience.
The rise of emerging destinations
When we think of business travel, we usually think of New York, London and Tokyo. However, this year’s Amex Trendex report reveals a surprising shift towards less traditional destinations that are increasingly attractive to business travellers.
For the first time, Amex has identified five trending U.S. destinations based on business customer spending: Princeton, New Jersey; Durham, North Carolina; Southwest Michigan (Kalamazoo and Grand Rapids); Sacramento, California; and Honolulu, Hawaii.
Photo: Honolulu, Hawaii. Courtesy of Cosmin Serban / Unsplash
Although not generally considered hubs for business travel, these cities are now experiencing substantial growth due to a variety of factors.
Fernando Iraola, executive vice president and general manager of global and U.S. large enterprises at American Express, explains: Business traveler“These cities are becoming hubs for certain industries and educational institutions, which explains their growing popularity for business travel.”
Graphic: Courtesy of American Express
Iraola said the report highlights Princeton's rapid emergence as a leading hub for AI research, driven by dynamic collaborations between Princeton University and the New Jersey Economic Development Authority, while Sacramento is attracting tech talent by introducing new airlines and a substantial $1.3 billion expansion of its airport.
Similarly, Durham's tech boom shows no signs of slowing down, with continued growth attributed to the expansion of Raleigh-Durham International Airport.
Photo: Courtesy of Raleigh-Durham International Airport.
Meanwhile, southwest Michigan is increasingly recognized for its attractive mix of corporate investment opportunities and rich cultural offerings, and Honolulu is increasingly becoming a premier destination for corporate retreats, offering a unique blend of exotic appeal and modern American amenities while successfully overcoming recent challenges.
Changing preferences: the mixed travel trend
One of the most significant trends highlighted in the Amex Trendex report is the rise of blended travel, the practice of combining business and leisure on the same trip.
Although the concept is not new, its popularity has increased since the pandemic, especially among younger travelers.
According to the report, 80% of business travelers enjoy exploring their destination when traveling for work, leading to a tangible benefit for businesses: 85% of travelers who took a blended trip in the past year said they were more cost-conscious when planning their trip.
Photo: Courtesy of Artem Zhukov / Unsplash
According to Iraola, this makes sense. “When travelers know they will have to cover part of the trip themselves, they are more likely to look for cost-saving opportunities,” he explains.
There is, however, a disconnect between how companies and travellers view their responsibilities. While 80% of companies that allow mixed travel say their duty of care covers both the personal and business aspects of travel, only 55% of travellers believe they should be responsible for the personal portion. This discrepancy highlights the need for clearer communication and policy definitions to ensure both parties are on the same page.
Photo: Fernando Iraola, American Express
“We have seen a significant increase in blended travel, where business travellers combine work and leisure,” adds Iraola. “Our research shows that 67% of business travellers are interested in this trend. It is particularly popular with younger generations such as Gen Z and Millennials. Interestingly, over 80% of companies now support blended travel as part of their policies. This trend is also leading to cost-conscious behaviour among travellers, as they often pay for part of the trip out of pocket.”
Iraola also highlighted the importance of duty of care in this context. “Our study highlights a gap in understanding duty of care for mixed travel. While 80% of companies feel responsible for both the business and personal part of the trip, only 55% of travelers share this view. This reveals the need for clearer communication and policies regarding mixed travel.”
Willingness to pay for comfort
As business travel evolves, so do traveler expectations. Comfort has become a top priority, and many travelers are willing to pay out of pocket to ensure a better experience.
The Amex Trendex report found that while many companies cover business class seats on longer flights (85%), 77% of business travelers have paid for a hotel or airline upgrade out of pocket or with personal points.
Photo: Allegris Business Class. Courtesy of Lufthansa
This trend is especially pronounced among Millennials and Gen Z, who are nearly twice as likely as Gen X and Baby Boomers to pay for upgrades frequently (30% vs. 17%).
This willingness to invest in personal comfort goes beyond simple upgrades. The report found that eight in ten (80%) business travelers are more excited to travel when they can take advantage of airline or hotel loyalty benefits. Yet there is a gap between what travelers want and what companies are willing to offer.
For example, access to a gym is the most sought-after amenity among business travelers, but 47% of companies do not offer it, while 27% of travelers consider it a “must-have.”
The growing influence of AI
Technology has always played a crucial role in business travel, and the Amex Trendex report indicates that this influence will only grow with the increasing adoption of artificial intelligence (AI).
According to the survey, 82% of companies are now using AI to manage their business travel, up significantly from 69% last year. This includes using AI for managing travel and expense policies (75% vs. 61% last year), booking travel (61% vs. 47%), and providing travel recommendations, assistance, or contingency planning (57% vs. 41%).
Photo: OpenAI. Courtesy of Zac Wolff / Unsplash
“American Express has been using AI and machine learning for decades, since 2010, to improve its risk management processes, including fraud prevention and underwriting,” Iraola said. “As technology has advanced, we’ve applied AI to personalize the customer experience, especially for tech-savvy travelers and cardholders. Our goal is to deliver personalized rewards and services at their fingertips.”
The continued integration of AI into business travel processes promises to streamline operations, reduce costs, and improve the overall traveler experience. However, as companies increasingly adopt AI-powered tools, Iraola points out that there is a growing need to train employees to use them effectively.
According to him, the Amex Trendex report reveals that more than half (54%) of companies using AI for business travel have taken steps to train their employees, helping to alleviate concerns about the appropriate use of these technologies.
Photo: Courtesy of Rob Wilson / Unsplash
“Internally, AI improves productivity and processes,” Iraola says. “We are committed to continuing our investments in risk management and operations while maintaining the high level of service that sets us apart.”
“It’s important that we integrate AI into human touchpoints because, as our data shows, customer satisfaction is higher when there is a combination of the two,” Iraola says.
The Changing Business Travel Landscape
Looking ahead, it’s clear that business travel isn’t just recovering from the pandemic: it’s evolving. New destinations are emerging as key players in the business travel world, combining work and leisure has become more than a trend, and technology, particularly AI, is reshaping the way companies and travelers approach business travel.
The insights provided by Amex Trendex offer a glimpse into the future of business travel, where personalization, convenience and employee satisfaction will likely take center stage. As we approach our 175th anniversary, American Express is poised to continue leading the way in delivering innovative travel solutions that meet the evolving needs of today’s business travelers.
American Express Platinum Card / Photo: RYO Alexandre/Shutterstock
“We are extremely proud of our 175-year heritage, including how we have always supported business travelers,” said Iraola. “As we approach this important milestone, we are excited to continue to innovate and improve the travel experience, especially for the younger generation who now expect amenities such as airport lounges to be a standard offering, not a luxury.”
Through continued innovation and a deep understanding of the changing dynamics of business travel, American Express is well positioned to navigate the future and help businesses and travelers get the most out of their travels.
