How Much Work Travel Takes Over Personal Time?

Business travel is a lucrative trillion-dollar industry, with the US and China being the biggest spenders. In the US, business travel from domestic and international travellers amounts to around $387 billion in annual revenue, with 12% of US travel being for business. Americans make over 400 million long-distance business trips per year, with the majority of these trips being by automobile. Business passengers represent 75% of an airline's profits, despite only being 12% of their total passengers.

Business travel in the US

Business travel is an integral part of the corporate world, providing opportunities for face-to-face meetings, attending conferences, and exploring new markets. In the United States, business travel constitutes a significant portion of overall travel. Americans make over 405 million long-distance business trips annually, accounting for approximately 16% of all long-distance travel. This equates to about 1.1 million people travelling for business every day in the US.

A preliminary analysis of the National Household Travel Survey (NHTS), conducted in 2001-2002, provides insights into the characteristics of business travellers and their trips. The survey found that the majority of long-distance business trips in the US are within 250 miles of the traveller's home, with nearly three-fourths (74%) falling below this distance and most of them within 100 miles. Longer trips, exceeding 1,000 miles, account for only about 7% of all business journeys. The median one-way distance for business trips is 123 miles, compared to 114 miles for pleasure travel and 103 miles for personal or family trips.

When it comes to transportation, personal vehicles are the dominant mode of travel for business, making up 81% of all trips. Air travel comes in second, accounting for about 16% of business trips. However, as the trip distance increases, the preference for transportation shifts. For shorter trips, personal vehicles are almost always the choice, with 97% of 50 to 99-mile trips and 94% of 100 to 249-mile trips being made by car. Between 250 and 499 miles, the use of personal vehicles decreases to 67%, while air travel rises to 31%. Beyond the 500-mile mark, air travel becomes the primary mode of transportation, capturing 64% of trips in the 500 to 749-mile range and an even higher percentage for longer distances.

Business travel is not evenly distributed across regions in the US. The West attracts 7.4 million more inbound business trips than it sends to other regions, while the South has 7.7 million fewer inbound trips than outbound. The South is the largest destination for outbound business trips from each region and is also the largest generator of inbound business travel to other regions.

Demographically, the typical business traveller in the US is likely to be male, working in a professional, managerial, or technical position, aged 30 to 49, and earning a higher income than the national average. Men account for more than three-fourths (77%) of business trips, while in non-business travel, the distribution is closer to equal, with men taking 54% of the trips. Professionals in managerial, technical, or similar fields make up over half (53%) of all business trips, despite representing only about 40% of the general population. Sales or service workers account for 28% of business trips.

Travel percentages in job descriptions

Many job postings indicate the amount of time an employee can expect to spend travelling for business. It is in a company's best interest to be specific about the amount of travel time expected of employees. This allows applicants to make an informed decision about the role and ensures that the company doesn't risk handing a candidate a job description during the interview process and discovering that the candidate wants to limit their business travel.

Job postings may include percentage ranges to define the overall amount of travel. For example, applicants may be asked whether they can handle zero travel, 5 to 15%, 20 to 40%, 50%, 60 to 75%, or 75 to 90% travel. Travel for telecommuting positions may vary, but 50% of the employee's time might be considered extensive.

The type of travel and the time spent on location should also be considered. Extensive travel could mean spending several weeks working at a customer's site, or it could refer to long flights or driving long distances. If employees are expected to use their own vehicles, reimbursement rates for mileage, wear and tear, and gas should be included in the job description.

In the United States, Americans make more than 405 million long-distance business trips per year, accounting for 16% of all long-distance travel. The majority of these trips are taken by car (81%) and are within 250 miles of home. Business travel is most common among those in professional, managerial, or technical positions, and men account for more than three-fourths of business trips.

Business travel statistics

Business travel is a lucrative market, contributing billions to the GDP of many countries. In this response, we will be looking at some statistics on business travel, primarily in the US.

The Business Travel Market

The business travel market is worth an estimated $933 billion as of 2022. It is expected to experience a CAGR (compound annual growth rate) of 13.2% between 2021 and 2028, with a projected value of $2.1 billion by 2028. This growth is despite the negative impact of the COVID-19 pandemic, which saw a significant drop in business travel.

Business Travel in the US

Business travel in the US from domestic and international travellers amounts to around $387 billion in annual revenue. It is a vital part of the US economy, contributing $547 billion to the country's GDP in 2016 alone. That figure is approximately 3% of the total GDP.

Share of Travel

Business trips currently account for roughly 12% of total US air travel, but they make up to 75% of airlines' profits. This is largely due to the booking of first-class tickets and the higher spending of business travellers.

Business Travellers

There are over 400 million business travellers in the US every year, with 1.1 million people travelling for business daily. This number has been increasing, with a noticeable rise from 185 million in 2020 to 460 million in 2022.

The typical business traveller tends to be male, aged between 35 and 54, and working in a professional, managerial, or technical position. They often have incomes well above the population average, with 56% earning at least $127,000 per year.

Business Trip Characteristics

The average business traveller takes around 6.8 trips per year, with millennials averaging 7.4 trips. These trips are mostly short, with the average domestic trip lasting three days and the average international trip lasting 5 to 6 days.

Business travel is often associated with long distances, but the majority of business trips are actually taken to destinations within 250 miles, and 84% do not cross census region boundaries. The personal vehicle is the dominant travel mode, comprising 81% of all trips, while air travel accounts for about 16%.

Business Travel Spending

Business travel can be expensive, with the average three-day domestic trip costing between $990 and $1,293, and the average international trip costing $2,600 or more. Companies spend roughly $799 per person per day during a business trip, with the most significant expenses being lodging (34%), food (20%), and airfare (17-27%).

Business Travel Policies

Despite the high costs and importance of business travel, many companies lack comprehensive travel policies. Only about 60% of companies have a corporate travel policy, and even then, compliance can be an issue. 72% of corporate travel managers have not achieved their desired travel policy compliance level, and only 50% of business travellers follow their company's travel policy. This lack of compliance can lead to increased costs and challenges in managing travel expenses.

Business travel spending statistics

The average three-day domestic business trip in the US costs between $990 and $1,293, while the average international trip costs $2,600 or more. Companies typically spend 17-27% of their travel budget on airfare, with the average domestic flight costing around $470. Food expenses can account for over 20% of a business travel budget, while the most significant expense is often accommodation, making up around 34% of total costs. Companies spend approximately $799 per person per day during a business trip.

The COVID-19 pandemic significantly disrupted business travel, causing a sharp decline in the number of business trips and travellers. However, the industry is expected to recover, with a projected CAGR of 13.2% between 2021 and 2028.

Business traveler statistics

Overview

Business travel is a trillion-dollar industry, with the US and China being the biggest spenders. In 2019, business travel made up nearly one-third of tourism spending in the US, contributing more than one trillion dollars to the economy and supporting around 2.7 million jobs. While the COVID-19 pandemic caused a significant drop in international business travel, the industry has been gradually increasing since then.

Traveler Demographics

Americans make over 405 million long-distance business trips per year, with about 1.1 million people traveling for business daily in the US. The typical business traveler is likely to be male, aged 30-49, with a higher-than-average income, and working in a professional, managerial, or technical position. However, the number of female corporate travelers is growing, with 45% of business travelers in the US being women. Millennials are also increasingly traveling for work, with 40% of them choosing jobs that offer travel opportunities.

Travel Preferences and Booking Behavior

Business travelers prioritize proximity to their meeting destinations when booking accommodations, even if it costs more. They are also increasingly adopting mobile booking, with 79% using their mobile phones to book trips. However, many wait until the last minute to book, causing issues with policy compliance and budget management.

Travel Costs and Expenses

On average, business travelers spend $1,018 per trip, with accommodation costing around $146 per night in the US. Businesses are paying about $200 more for flights in 2024 compared to 2019. Food is another major expense, accounting for over 20% of travel budgets in 2023. The most expensive US city for business travel is New York, with daily costs averaging $799, followed by Geneva and Zurich.

Sustainability and Safety

There is a growing focus on sustainability in business travel, with companies adopting more sustainable practices and travelers seeking eco-friendly options. However, safety and security remain a concern, with 37% of business travelers experiencing travel-related anxiety and 46% lacking a corporate travel safety plan.

Frequently asked questions