The demand for business travel is up some 11 per cent this year, and the Global Business Travel Association projects it’s just going to keep growing. But it’s not all smooth sailing for those travellers. A recent Corporate Traveller survey conducted by YouGov found that 70 per cent of air travellers have experienced disruptions, including delays, cancellations and lost luggage. It’s not just a minor inconvenience; it’s a serious problem, especially as the Government of Canada has just allocated $50 million to Destination Canada specifically to attract major international conventions, conferences and events to this country. Here’s what else you need to know about business travel in Canada.
Costs Take Off
Although costs were expected to decrease post-pandemic with the higher number of travellers, the exact opposite has happened thanks to a combination of factors, including labour woes, fewer airlines (Lynx Air and Swoop have shuttered; WestJet has absorbed Sunwing Airlines) and plane delivery delays caused by production problems at aircraft maker Boeing. All of that means fewer seat capacity and higher prices, though there is reportedly some relief in sight.
Business Travel is Big Business
Global business travel industry spending is expected to hit a record US$1.48 trillion by the end of 2024, and surpass US$2 trillion by 2028, according to the 2024 “Business Travel Index Report” produced by the Global Business Travel Association, which surveyed 72 countries, 44 industries and 4,100 business travellers across five global regions.
Travel Delays in Canada
Flight delays and disruptions are on the rise. The Corporate Traveller study shows that among business travellers who have experienced such disruptions, a staggering 91 per cent report an adverse impact on their business plans and 12 per cent state that the disruption had a significant adverse impact.
Frequency of Travel Disruptions
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- 10% of travellers experience regular disruptions
- 27% encounter occasional issues
- 33% rarely face problems
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Common Causes of Travel Disruption
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- 63% Flight/travel delays
- 32% Flight/travel cancellations
- 31% Missed connections
- 29% Lost or delayed luggage
- 22% Overbooked flights
- 17% Overbooked accommodation
- 9% Denial of departure or entry (i.e., visa expiry)
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Reasons for Flight Delays
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- 43% Mechanical faults
- 43% Severe weather
- 19% Administrative errors
- 17% Transport worker strikes
- 15% Health emergencies
- 15% Incomplete paperwork
- 13% Critical security concerns
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Regional Disparities
Ontario:
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- Most overall disruptions 76%
- Second most frequent delays 63%
- Fewer missed connections 26%
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British Columbia:
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- Second most overall disruptions 72%
- Most mechanical issues 53%
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Alberta:
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- Third most overall disruptions 67%
- Most flight delays 74%
- Most missed connections 43%
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Quebec:
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- Fewest overall disruptions 49%
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Source: Corporate Traveller/YouGov
