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International Business Travel, Management of Global Business Travel

International business travel.

For many businesses across the United States, commerce is a global activity and with an international economy comes the challenge of doing businesses in other countries around the world.

Global travel is not without its risk and the coronavirus pandemic has shown that from a business perspective, organizing travel and ensuring the safety of your staff has raised a whole new set of challenges and issues, many of which not all businesses were prepared for.

As global business travel starts to increase again, both employees and businesses are looking at ways that they can still travel internationally for business, whilst maintaining safety and ensuring that any fast-moving changes and situations are managed effectively and easily without incurring the cost of having to rebook or cancel at short notice.

International Business Travel Risks

When it comes to traveling internationally for business, just like with leisure travel, it isn't without some potential risk. While the majority of business travel is carried out without a hitch it's always a good idea to be prepared for the worst.

Some of the travel risks that travelers need to watch out for include staying safe in unfamiliar locations, keeping travel documents secure and maintaining health, which has become paramount in recent times.

Other risks that affect international business travel are last minute changes to a person's schedule, such as cancellations and problems with bookings. Modern business travelers need to have a set of dynamic policies and tools they can rely on to ensure that they can quickly adapt to any challenges that arise.

The good news is, there are plenty of things a business can do to insulate itself from issues with international travel and to help maintain the health and safety of their employees when traveling on behalf of their organization.

One of the key improvements a business can make to their business travel program to help mitigate the majority of these potential travel problems is to use an effective travel policy .

How International Business Travelers Can Protect Themselves

When traveling abroad it's always a good idea to have a travel insurance policy to cover potential issues. As a business traveler, your personal travel insurance policy might cover you for business trips, but it's worth double-checking the policy with your provider prior to travel to avoid expensive mistakes. The company you work for might also cover you under a business travel insurance scheme, but you should again check with your employer to find out what is, and what isn't covered. For example, it's never advisable to travel without a health care policy in case of illness or accident.

It's also a good idea to familiarize yourself with the location of the nearest U.S. embassies so that if the worst happens and you lose important documents like your passport, you'll know where to go to resolve the issue.

Although employees may take a pragmatic approach to traveling safety, employers have a duty of care to their personnel, which means as a company you might be looking at ways to keep your employees safe when they're out traveling for your business. Ultimately, the best way this can be achieved is by implementing a comprehensive travel risk management program and by creating travel policies to maintain travel compliance and ensure traveler safety.

Coronavirus Pandemic's Impact on Global Corporate Travel

Over the last few years, the Covid-19 pandemic has caused huge problems traveling internationally. Even at a domestic level, the road warriors who travel around visiting customers and businesses across the U.S. have found that state to state, U.S. travel still has its own unique restrictions and challenges to deal with.

For business travelers looking to travel to a foreign country in many locations, travel restrictions have been put in place to stop unnecessary travel. As the coronavirus vaccine has been rolled out, some of these travel restrictions have started to lift and travel plans are starting to be made again.

When it comes to international business travel, it's always a good idea to check the status of the country that you're going to, so you can ensure that you can travel by meeting any restrictions that are in place. The Egencia ® Travel Advisor tool can quickly and easily identify issues in various locations around the world. In addition, you can find travel advisories for trips during COVID-19, including regulations for destinations, and safety and health guidelines.

Benefits of International Business Travel

Even though business travel has reduced over the last few years, and with the targets to reduce carbon emissions, many businesses are looking at ways to reduce expensive (and emission producing) business trips where possible. However, while some business meetings can be held via video conferencing services, it can be difficult or impossible to carry out some business functions virtually. Often, you just have to be there!

There are a number of benefits of face-to-face meetings with colleagues or clients, and these include:

Being able to read body language. It can be difficult to pick up on the non-verbal cues when speaking virtually. Humans have the ability to pick up on subtle micro expressions that people give off, and adapt accordingly. This can help with competitiveness and closing deals that might otherwise be lost if those micro expressions are not picked up on - which is hard to do virtually!

Building relationships. Many customers prefer face-to-face meetings as business often isn't just about what you can offer as an organization but also about relationships and finding people and corporate philosophies that are in synergy together. This is much easier to do in person, where small talk and more natural interactions can occur between people and teams.

Improve focus and concentration. When in a face-to-face meeting you tend to have the full attention of the people that you are speaking to. When on a video call, you might find that people in the meeting aren't paying as much attention. They could be looking at social media, answering emails and not being fully engaged. In a face-to-face meeting the likelihood of this happening is significantly reduced.

Easier to deal with different time zones. International business can take place across lots of different time zones. When trying to organize a call or video meeting, it can mean that someone somewhere, will have to accommodate an out-of-hours calendar invite that might come at a very inconvenient time. For global organizations this can mean that someone will have to have a call or meeting very early in the morning, or very late at night. This can reduce productivity and effectiveness if people are tired. This can also mean that people are keener to get the meeting over and done with faster, so meetings can be rushed.

A face-to-face meeting means time zones won't matter because everyone will be one the same schedule. Of course, an international flight can introduce the dreaded jet lag, but this can be compensated for by proper scheduling of the flight and adequate rest.

For the individual business traveler, there are also benefits to be had from traveling internationally. For instance, it can make a job more interesting and engaging as you get to explore and see new cultures and locations.

International travel can make a job more varied, as you'll often experience new things, activities and meeting new people. For many employees this is the sort of thing they look for in a role, and it can make for a happier employee. When the employee is restricted to a conference phone call or video meeting, often from their own homes or satellite office, the day-to-day can become boring. International travel is a way to keep employees engaged, happy and most importantly efficient and effective.

With the ability to use laptops and mobile computing devices when traveling and when using air travel, there's a lot less employee downtime, so in many cases an employee can still carry out work when on a long-haul flight.

International Business Travel Management

Some companies leave the booking of international travel to the employees to handle, but this is not always the best use of their time, nor is it the most cost-effective way to travel.

That's why many companies use a travel management company such as Egencia to simplify and streamline business travel. Egencia help businesses manage travel risk and help to ensure traveler wellbeing no matter where they travel to. Egencia's travel management solutions also help support your business and plan for the future.

You can set up travel policies for your employees and you can keep in contact with your team globally to keep them informed and ensure their safety when out on business using our travel risk management tools and services.

Future of International Business Travel

When it comes to international business trips, the future holds interesting challenges for travel managers. The coronavirus pandemic has shown that a dynamic approach to business travel is needed. This can be hard to maintain when managing your own business travel program. This is why many companies turn to Egencia to help support their business travel program.

In addition to the need for more dynamic business travel solutions , many organizations are looking for ways to reduce their carbon impact on the environment and areas such as business travel, and especially international business travel are under the spotlight as this is an area where savings can be made. This is where Egencia's travel policy solutions can help, from ensuring only direct flights are booked, but also by ensuring travel options that are environmentally friendly are used more often.

So, whether you're looking for dynamic business travel solutions, need help setting up travel policies for your employees, or want to reduce your carbon footprint, we can help you fine tune your International travel. Visit Egencia.com to find out how we can make your global travel run smoothly.

Looking for better business travel solutions? Get in touch with us.

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Corporate Travel Companies Are Bulking Up: ‘Getting Bigger Is Critical’

Justin Bachman, Skift

April 10th, 2024 at 10:06 AM EDT

Pressure from travel suppliers who want better merchandising tools and lower costs are compelling travel management companies to consolidate.

The big players in the world of managing corporate travel are gearing up to get bigger: Amex GBT’s $570 million bid for CWT and the sale of Direct Travel to an investor consortium are two of the latest examples of the race to bulk up through mergers. 

The trend is driven largely by two factors: Travel suppliers – primarily airlines – seeking greater efficiencies in their distribution channels and the enormous capital required to invest in the technology to sell to and service travelers around the world.

“I think fundamentally customer needs are driving consolidation in the industry,” Amex GBT CEO Paul Abbott told Skift. “I think supplier needs are also changing. Suppliers want their distribution channels to deliver a modern retailing experience,” he said.

For example, airlines are moving a growing share of their fares from the traditional global distribution system model to a direct NDC (New Distribution Capability) platform. And agencies are under pressure to adopt it. 

CWT merging into Amex GBT is “a perfect example of how it’s really only the big players that have the capital to do it,” Mike McCormick, a travel consultant and former head of the Global Business Travel Association, said on April 1 on the Travel Again podcast.

The largest corporate firms, such as Amex GBT, BCD Travel and Navan, have been forced “to really make big investments in technology and continued investments” given the aggressive push by American and others, McCormick noted. 

Navan, for example, last month touted its deeper integration with United Airlines to support that carrier’s pricing strategy for fares, along with other self-serve tools and more personalization for travelers.

“Getting bigger is critical in terms of  a lot of the airline changes and negotiation, and always pressure on earnings and commissions and business in general,” McCormick said.

Investing For the Next-Generation of Travel

Investor Steve Singh, the founder and former CEO of Concur, is managing director of Madrona, the Seattle-based venture capital firm that is among the four investment firms that acquired Direct Travel Inc. on April 2. 

Singh told Skift the investor group is keen to create a “next-generation” travel management company that would offer a seamless connected trip in which all of a traveler’s airline, hotel, meeting, ground transport, and appointment bookings would be integrated, allowing for far simpler itinerary changes. For now, it’s an aspirational goal, one the industry has long wanted but that has proven tough to attain. 

Travel management companies sell multiple technology platforms to serve customers and “the result is that it is very expensive to build and run a TMC,” Singh wrote in a blog post explaining the investor group’s view of how the managed-travel industry should evolve. 

“The fact that these legacy solutions are built on GDS platforms that are not open and not extensible makes the goal of delivering an incredible client experience at a better value proposition even more challenging.”

“As someone who has logged tens of millions of flight miles, I would love a system that allows me to reserve a hotel from the time I arrive in a town to the time I need to leave, not from 3 p.m. to noon,” Singh wrote in his post.

What’s Next for Travelers

Amex GBT customers may see a greater focus on particular industry verticals, such as energy, U.S. government, mining and marine industries for CWT. Those areas tend to present greater complexity and transaction value, along with higher customer retention rates, Amex GBT told investors March 25 explaining the CWT deal.

Abbott said successful travel-management companies will increasingly need both software and services — not just one — that are married effectively.

“You have to have the best technology and the best people, you have to integrate it better than anyone else, and you have to deliver that consistently on a global basis,” he said. “And that’s hard and it requires significant investment and significant expertise.”

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Tags: airlines , amex gbt , business travel , concur , corporate travel , cwt , navan

Global airlines are governed by strict 'freedoms of the air' dating back 80 years. They've created some funky routes.

• Global airlines are governed by nine "freedoms of the air," drafted 80 years ago in 1944.
• These dictate how airlines can operate in foreign nations, with some more complicated than others.
• The fifth freedom can give airlines a competitive edge and help capitalize on demand.

Over the past 100 years of shuttling people around the globe in metal flying machines, the world's aviation network has grown into a vast web of intersecting routes that connect nearly every corner of the globe.

Because of the complexities of crossing international borders, commercial carriers follow what is known as the "freedoms of the air" — or the right for an airline to operate within a nation other than its own.

These building blocks of aviation make international connectivity possible. 

According to the International Civil Aviation Organization, or ICAO , there are five official freedoms and four other "so-called" rights, that have been outlined in agreements between countries. ICAO is an agency of the United Nations that sets standards for the global aviation industry.

Drafted in 1944 during what is known as the Chicago Convention, the laws were written as world governments relaxed their grip on airline networks and pricing. This liberalization, however, meant countries with bigger airlines would likely dominate the skies — prompting them to implement strict route regulations.

The governing freedoms not only promote more competition and choice but also allow airlines to optimize routes and increase efficiency, according to FlightRadar24 . 

Most international carriers except for a very small few follow the basic freedoms of allowing airlines of one state to fly over or land in another, and vice versa.

Open Skies agreements simplify these international routes, like the one between the European Union and the US that allows any airline registered in either market to fly between the two.

Some freedoms are more complicated, but provide interesting and diverse route options to travelers.

The fifth and eighth freedoms of the air

Beyond the first four freedoms, there is one more officially recognized right, as well as the four "so-called" rights. The latter four were not officially drafted during the 1944 Chicago Convention but are regularly accepted and practiced worldwide.

According to ICAO, the fifth freedom gives an airline of one nation the right to fly between two other countries, so long as the one-stop routes start or end in its home country and all parties agree.

Among the most well-known fifth freedom routes are Emirates' flights from New York-JFK to Milan and Newark to Athens, both flying onward to the carrier's base in Dubai.

Similarly, Singapore Airlines flies between New York and Singapore via a stop in Frankfurt , and Australian flag carrier Qantas flies between Sydney and New York via Auckland, New Zealand, according to Google Flights.

United Airlines' delayed fifth freedom route will fly between the US mainland and Cebu, Philippines, via Tokyo starting in October, the carrier told Business Insider on Monday. It was supposed to start in July — before the FAA launched an investigation after a string of safety incidents at United.

These unique routes can be efficient for airlines trying to serve destinations that a plane can't reach nonstop, like Emirates' fifth freedom between Mexico City and Dubai via Barcelona or Latam Airlines' route between Sydney and Santiago, Chile, via Auckland. 

Still, carriers will make stops on otherwise attainable direct flights because they can capitalize on the high-demand market on both legs — filling more seats and making more money.

Customers may also view carriers like Emirates and Singapore as a more luxe offering than the competing US and EU carriers across the Atlantic.

On the other hand, an airline that wants to serve a low-demand market can better fill the plane by adding a fifth-freedom leg to a nearby city, like Dutch flag carrier KLM's flight between Amsterdam and Santiago via Buenos Aires. 

Among ICAO's most interesting "so-called" rights is the eighth freedom, which gives an airline the right to fly between two cities in a country that isn't its own— but the domestic leg seats cannot be sold as the entire journey must start or end in the foreign airline's home nation.

Related stories

Qantas used to fly an eighth freedom route between New York and Sydney via Los Angeles — but only those originating or destined for Australia could fly on the domestic cross-country leg, Forbes reported.

Also no longer flying, per Cirium data, African carrier Air Senegal, for example, launched a flight from Dakar to Baltimore with a layover in New York in 2021. The domestic leg seats couldn't be sold.

Here's a closer look at the freedoms of the air.

"Five Freedom Agreements"

First Freedom

This allows an airline of one nation to fly over another without landing.

Second Freedom

This allows an airline of one nation the right to land in another territory for a technical stop. Think refueling or an inflight mechanical issue that prompted an unplanned emergency landing.

Third Freedom

This allows an airline of one nation to carry passengers to a foreign state, and vice versa.

Fourth Freedom

This allows the airline of one nation to take on passengers originating in another. The fourth freedom is simply the reverse of the third freedom.

Fifth Freedom

This allows an airline of one nation to carry passengers between two countries other than its own so long as the route starts or ends in the carrier's home state.

"So-called" rights

Six Freedom

This allows an airline to carry passengers from one nation to another via its home state. This represents the typical hub-and-spoke network used by global airlines.

Seventh Freedom

The seventh freedom is similar to the fifth freedom but takes out the limitation of where the route must start or end. Instead, an airline has the right to fly between two nations other than its own without flying onward to its home base.

The EU's single-aviation market, for example, grants airlines the right to fly to and from any EU country, like Ireland-based Ryanair that flies between Rome and Vilnius, Lithuania.

Eighth Freedom

This allows an airline to fly between two cities in a foreign country so long as all passengers originate or are destined for the airline's home state.

Ninth Freedom

This cabotage freedom allows an airline of one nation to fly between two points in a separate single country. This does not exist in the US, but it does in the EU — like easyJet's back-and-forth nonstop between Paris and Nice, for example.

Watch: Why Singapore Changi Airport was just named best in the world

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Airlines struggle with lack of planes as summer travel set to hit record levels

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Apple denies violating US court order in Epic Games lawsuit

IPhone maker Apple on Friday denied violating a court order governing its App Store and urged a California federal judge to reject a request by “Fortnite” developer Epic Games to hold it in contempt.