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Running head: AN ANALYSIS OF BUSINESS TRAVEL 1

An Analysis of Business Travel: A Closer Look

Kayla L. Wysocki (Czapracki)

Wilkes University

August 2017
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Abstract

Travel is a goal many people wish to achieve in their personal life. On a similar note, business
travel is a hot topic in todays working society. When it comes to the job market, because of its
glamorous image, a job seeker may be inclined to seek out a career that includes frequent
business trips. Travelling is typically considered a perk to an individual employee in their job or
career. Air travel is a staple in todays economic atmosphere, and the industry is growing
rapidly. Globalization continues to benefit the worldwide economic situation as well as
consumers. Research suggests that there are unbeatable benefits to a company who expands
globally, but a closer look is necessary to explore all the facets that go into making globalization
successful as well as sustainable. Also, what about the companys traveling employees? There is
still much speculation over the effects travel has on a persons health, lifestyle, and relationships.
Further investigation will explore the economic benefits that global expansion has on companies
as well as the global economy, and will also explore the effects that this travel has on the
individual employees doing the traveling as well as their families. Ultimately, this research is
intended to look at the current global business industry and provide an analysis of the risks,
challenges, and opportunities presented within the mysterious and growing industry of business
travel.
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An Analysis of Business Travel: A Closer Look

Globalization: as weve come to know it today in business, is the process of developing


worldwide influence in order to operate on an international scale. The world benefits from this
process in several ways. Globalization can foster cultural awareness and acceptance, increase
access of goods and services to consumers, and of course widens markets to make companies
more profitable. Thanks to public policy and technology, the world is now interconnected like
never before. Borders of countries are now no longer an economic setback. However, domestic
growth should not be without mention. A company or business must have a successful platform
within America or its domestic country typically before venturing outwards.

In order to make globalization and growth within the domestic area possible, current
industries must rely heavily on technology as well as domestic and international relations. So
that business can establish positive relationships in other states or countries, business travel by
employees is required. Business travel is the act of travelling via some means of transportation,
to a destination that is either domestic or foreign for the purposes of work or business. A
business traveler then receives wages for work performed, and travel expenses are usually paid
for by the employing company. Being a company that allows employees to travel for growth
opportunities can create effective results and profit possibilities. Business expenses for the
company can add up quickly when analyzing travel costs, hotel fees, and other reimbursements.
Therefore, companies must make smart investment decisions before proceeding.

Although companies, society, and economies can benefit from this process, it is
necessary to see if the employee benefits as well. One may assume that the stereotypical image
of a business traveler includes frequent international trips by air. However, according to the
Bureau of Transportation Statistics, the majority of long distance trips are taken by vehicle, and
most destinations are within 250 miles of the employees home. This may seem like a fairly
simple and easy trip, but when travel is lengthy and frequent, it can create obstacles for both
company and employee alike.

In a personal sense, travel is considered one of lifes peak experiences. Living a


traveling lifestyle can seem glamorous, especially with the use of social media amplifying its
paramount pictures and moments. However, it is important to point out that travel does not come
without risk. Whether it be in a car, bus, train, or plane, a person choosing to travel is putting
themselves at risk through several concrete physical channels. Some of these channels include
being injured or harming their physical health, the risk of a transportation accident, and even the
risk of terrorism or crime occurring during travel or at the destination.

Although the consequences arent quite noticeable initially, frequent travelers can also
incur several negative mental and social effects as well. It is necessary to explore if these risks
and effects are appropriately transmitted to the traveler before taking on the task. A person who
is consistently away from home, their family, and their normal life routine can suffer negative
outcomes in those areas. Elements such as mental health, well-being, relationships and
friendships can be negatively affected and will be evaluated. Although business travel is a large
industry, not many works attempt to explain any type of categorized framework to address
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emotional issues, family hardships, work and stress reactions, or physiological and psychological
health.

Past growth of the industry will be analyzed, and future growth will be forecasted. The
rest of the work will delve into details about the current state of business travel, and the impacts
it can have on a company, both positive and negative. This is then followed by the impact it can
have on the travelers health, family life, and relationships. For a person who is already in this
line of work or considering it, it is crucial to understand the benefits and risks of travel from an
industry point of view, as well as a personal point of view. Global business and the travel that
ensues will continue to have an imperative impact on todays economy, and is an ever-growing
industry. Therefore, it is appropriate that the work concludes with an analysis of the challenges
and opportunities so that companies, shareholders, travelers, jobseekers, and layperson alike can
see both the benefits as well as the disadvantages of the entire industry.

Current State of Business Travel.

Industry. Business travel is not a new phenomenon, and it has been occurring for many
centuries via many different methods. It is safe to say that the history of business travel, and
even tourism alike, has not been extensively researched and does need more insight. The
beginnings of travelling for business could be narrowed down to trade routes walked by foot
back in ancient times to purchase goods and services. Over time, travel has become civilized as
well as specialized for specific purposes, roads and air routes have been created and improved,
safety measures were implemented, and the industry has slowly grown to be very popular,
efficient, and important. Business travel can be undertaken via many outlets, including; car, bus,
air, rail, ferry, cruise liner, and buses/coaches. The most popular methods are typically by
vehicle or aircraft.

Looking back, the travel industry has visibly grown quite extensively since the
introduction of the automobile, commercial aviation, and transportation in general. Since then, it
has been human nature to continue to expand and explore, in a business as well as a personal
sense. People are traveling more for vacations or personal reasons, just because the current low
industry costs allow them to do so. Also, more recent generations want to see the world like
never before. In the business world, the growth of travel use to this point is impressive, and the
future forecasts show that there really are no signs of the industry slowing down. This growth
can be studied on two levels; domestic, and international. Domestic growth uses business travel
often, with flights or trips via vehicles to interact with several entities within the country.
International travel is used much less when compared, but is nevertheless continuing to grow.
Americas international presence is undoubtedly known across the world as businesses continue
to establish headquarters in other countries.

The current contributions of both domestic and foreign business travel are substantial.
The American economy, as well as the global economy, receives many direct benefits from the
industry. According to the U.S. Travel Association, reports indicate that in 2016 domestic and
international business travel spending totaled $307.2 billion. Quantitatively, this equates to
457.4 million business trips logged by U.S. residents in 2016. It has even been reported that
without tax revenue generated by business and tourism, each household in the U.S. would have
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to pay an extra $1,250 in tax dollars. In regards to international travel, spending directly
sustained 1.2 million U.S. jobs and yielded $32.4 billion in wages (US Travel). The industry
supports economic growth on every level. According to the US Travel Associations Travel
Trends Index, future growth projections remain steady overall, despite uncertainties of the
economy, world health issues, terrorism, and other obstacles. However, if a company is
concerned about the turbulent political environment, there are other options available to avoid
physically traveling. Since the development of communications technology, videoconferencing,
and programs such as Skype, these services are used and even suggested when travel isnt
convenient or an option. Among other travel tricks, using e-services is marketed to companies as
a way of slashing travel costs (Morris, 2016). However, most business professionals establish
better relations and rapport during face to face meetings. Meeting face to face is important in
establishing a relationship and creating a level of trust. According to an Oxford Economics
survey, 25% of current customers and 28% of revenue would be lost to competitors without face-
to-face meetings (Oxford Economics, 2013). Despite the growing use of alternative
technological methods, business travel is still an important and necessary factor of growth within
a company, and is projected to continue on a positive trend. In the future, as countries develop,
many up and coming nations will also begin to participate or increase their participation within
the global marketplace. A nation that does not participate is at a definite risk of lowering their
standard of living and economic position.

The workforce is also expected to continue to grow. One of the most prominent
employees entering the industry today are millennials. With new millennial employees flooding
the business sector, employers must be aware of this important group. Millennials are typically
classified into the people born between 1980 and 2000. For employers, understanding the
expectations and needs of this age group is imperative to their success. Millennials will comprise
half of the global workforce by 2020 (Amex Global Business). It is thought that this specific age
group embraces flexibility, ease, and luxury. They are also thought to value experiences, as well
as traveling. Companies must be cognizant of differences in preference between age groups in
the workplace. On the other hand, airlines, travel agencies, and the like, need to be
accommodating to all age groups and preferences as well. Despite age, when something is of
value and good quality, satisfied consumers tend to become frequent users of said product.
Because of this, travel companies offering different methods of transportations must still
continue to focus on soothing the travelers stress, offering superior service, and separating
themselves from the competition. Because of these more demanding traits displayed by the
Millennial group, in the future society may even see a more common use of luxury jets and
private aircraft usage outside of the norm. The Wall Street Journal has even partnered with
company NetJets, claiming that their service is The Future of Business Travel (WSJ). This
company boasts experience, innovation, and flexibility for even the most senior of executive
business travelers. Employing companies will need to evaluate and possibly update their travel
strategies overtime if concerned with retention of millennial employees.

Another group of individuals taking the business travel sector by storm now, as well as in
the upcoming years, are Asian business travelers. According to the Global Business Travel
Association (GBTA), Asian Pacific markets are expected to be a large contributor to global
travel. In 2015, China had surpassed the U.S. in regards to business travel spending. American
contributions are expected to fall short to Chinas as well for 2016s calculations. In 2016, the
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U.S. Travel association also forecasted that the top five high growth markets over the next 5
years are predicted to be China, India, Argentina, South Korea, and Taiwan respectively. Four
out of these five projected countries are of Asian origin. In addition, the IATA forecasts that the
biggest drive of demand within air travel to be the Asia-Pacific region. This region is expected
to be the source of more than half the new passengers over the next twenty years (See Figure 1).
China is expected to displace the U.S. as the worlds largest aviation market around 2024 (IATA,
2016). For several years it has been indicated by several leadership, business, and economic
colleagues that the Chinese economy will overtake the United States. From 1970 until the year
2000, the American contribution of total economic global output has been steady. Since the year
2000, it has been declining. The predictions are finally holding true. With the help of a booming
automobile industry, this has given China the perfect chance to supersede American
contributions (Patton, 2016). To combat this occurrence and explain the reasoning, further
research is recommended in regards to Americas declining efficiency and output.

Economic global benefits. Although there seems to be a tendency towards domestic


protectionism, global business and the travel that ensues remains a critical influence of success
for businesses and economies alike. There is a symbiotic relationship between the U.S. and other
countries with whom we interact with on a business and economic level. Domestic expansion
can benefit the American economy directly, and therefore the global economy indirectly. When
a business expands globally, it is at that point that a single American company has a direct and
positive effect on a foreign country, which strengthens the foreign economy, and therefore the
global economy as well. When one country is prospering, it affects much more than meets the
eye. Because of our countries power, the health of the United States plays a key role in
determining international, political, and economic stages of the world. When an American
company ventures abroad, other countries typically welcome our contribution to their economy.
If a U.S. company loses business abroad, their foreign economy typically suffers. Some can
argue that this practice is considered outsourcing if the company hired foreign workers, however
companies seeking to strengthen global ties and expand their market do not have many other
options. Despite what Americans view as cheap labor, American companies in foreign
countries are helping by increasing the number of jobs available while also keeping their pay at a
competitive rate with other jobs in that locality. Note the difference between globalization of a
company or industry for universal benefit, versus simply producing products outside the U.S. in
order to save on labor costs.

Economic theory generally discusses land, labor, and resources as factors of production.
General and unskilled factors can be acquired by any company. However, it is specialized
companies that use skilled labor, capital, and strong infrastructure that will have the competitive
advantage. Competitive advantage is generally known as a condition that allows a company to
be in a favorable business position. It is this specialization that allows key factors to be created,
rather than inherited. Essentially, firms that are more specialized and harder to duplicate become
more valuable over time. This expansion of specialized firms into foreign territory can then
benefit both countries involved. Production has become extremely efficient by means of
interdependent trade between countries. Technology allows us to connect with other countries
and producers by means of international specialization, as well as cross sourcing and enabling
the U.S. to supply and receive products from all over the world. Basically, all global trade
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industries can directly affect the business travel industry, so it is important to form and maintain
these relationships.

Global players. There are several global players involved in the industry that are key to
its current success. Forbes analyzed the GDP growth, GDP per capita, trade balance, and
population to conclude what the top five areas are where business climate is the best as of 2016.
These top five areas include Sweden, New Zealand, Hong Kong, Ireland, and the United
Kingdom. The United States is currently 23rd on that list, which has been moving lower
consistently for the last decade. In contrast, according to the U.S. Travel Association, the top
international markets specific to the U.S. are Canada, Mexico, United Kingdom, Japan, and
China. Looking at the business climates not specific to the U.S., Sweden in particular is
successful due to several key economic factors. The country has implemented deregulation, as
well as cuts to welfare to encourage employment and allow for tax cuts. The country is home to
several well-known brands, but also many technology startups as well. Second, New Zealand
has encouraged economic success by transforming their highly regulated economy into a robust
free market. Many entities that were government administered were privatized, and it now ranks
highly in investor protection. Hong Kong, as well as all of China, is steadily contributing to the
global economic output. Ireland is attractive for investors and companies due to the low
corporate tax rates. The United Kingdom was measured before their exit from the European
Union, which could have detrimental effects on their economy in the future (Forbes, 2016).

Not only are business environments and the countrys economic climate important factors
to being a global player in the business world, the company itself is also very important.
According to Business Travel News in 2016, the top ten companies with most tickets purchased
for business travel either domestic or international are as follows; IBM, Deloitte, Boeing, GE,
PwC, Apple, Accenture, EY, McKinsey & Co., and Lockheed Martin. These companies have
large corporate travel programs and are the major companies using the business travel industry
currently. The industries they represent are technology, aviation/transportation, tax and audit
services, and company logistics and analytics. All of these industries are very important to the
American economy as well as global. One of Americas key exports is aviation technology.
According to MITs Observatory of Economic Complexity, the U.S. is the worlds second largest
export economy. Planes, helicopters, and space crafts, as well as computers are listed as our
nations top exports. Looking specifically at the top contributor, IBM, although they are number
one in regards to purchasing tickets and engaging in their own business travel at a high rate, they
are also a major influence to the entire industry. According to IBM.com, they boast industry
leading solutions for your travel organization. In the travel industry, the company offers
programmatic solutions for airports, freight and logistics, rail, as well as hotels and travel
services. In regards to air travel, the company assists airlines with customer loyalty sales and
service, traveler core systems modernization, and asset management and maintenance. The
company also participates in data collection and analyzation which it then houses on its website
for the public to view. Whether it is offering trends & insights, case studies, or solutions for the
future, IBM is very much an innovator, and an important asset to the logistics of the travel world
today as we know it.

As far as mode of transportation, corporations have their options. Some companies may
own a specific travel vehicle or even several, or choose to use a rental car service. This is a
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scenario where management would need to coordinate to do a cost benefit analysis to decide
which method is best and most efficient. If travel is frequent and extensive, it may be more
sensible to purchase a company car. If travel is intermittent and sporadic, it may make more
sense to use a rental company as needed. According to Money Magazine in 2017, the top rental
services in the industry currently are Alamo, Enterprise, and Budget. These companies focus on
low costs in comparison to competitors, quality service, and convenient locations. Enterprise in
specific gives discounts the longer the period of the rental. Several other companies are listed
behind the top 3 such as Hertz, National, and Avis (Leonhardt, 2017). Companies and managers
must make strategic cost decisions in advance of the trip if trying to save on overall costs. If the
option is left to the employee who then submits a travel voucher for reimbursement, this would
not be the most efficient choice for the company, however it would be the best experience for the
employee. Also, if deemed necessary, there are also several private companies offering luxury
cars for business travel. In regards to air travel, the top used airlines currently are United
Airlines, Delta, and Jet Blue (Martin, 2016). Each airline offers a corporate travel program that
promotes and rewards loyalty. Currently, United is rolling out its new Polaris Business Class
Experience. Polaris boasts laydown seats, luxury amenities, meal choices, beverages, and
access to the aisle from each seat. In addition, the Polaris experience will also extend to select
airports in the form of a lounge. The airport lounges also house daybeds, workstations, and even
showers. The experience is higher than that of first class, but one step shy of paying for a private
flight. This is a major overhaul for the airline, the first in years in an attempt to square up to the
industry standards. The focus of Polaris is respond to the demands of the weary business
traveler image. This creation was a market response in reaction to their competitors, especially
Delta One, as well as several overseas luxury airlines which all offer similar services. There are
also several lesser known private companies competing for business that offer more private and
personalized flights, if afforded or necessary.
Employers. Expanding within the domestic country, as well as the world, opens up
several new opportunities for business growth. It allows market access to specific target markets
or niche groups, opportunities for business connections in different locations, and exposure to
new ideas, language, or culture. Although domestic expansion is a great benefit to the American
people and economy, globalization has the ability to benefit several countries. International
relations will be the key to success of the future in business, as well as right down to the most
basic human interactions. Right now, countries operate within their own constraints and
globalization is still a fairly new concept that is growing. However, in the future, unity will
become a more prominent and important feature as global issues loom, we all must face them
together. Global warming, fair trade, humanitarian issues, war, religion, all impact every
country, every business, and every person. With this in mind, employers and companies alike
must remember this when making strategic business decisions. The world could be a stronger
and better place as society expands and intertwines. In a 2016 study done by Global Economic
Dynamics that analyzed 42 countries over the span of 24 years, it was found that all countries
involved benefitted from globalization during the time period. The organization created a
globalization index consisting of economic, social, and political interconnectedness. On average,
a one point rise in the globalization index resulted in a 0.35% increase in the growth rate of real
per capita GDP. This suggests that interconnectedness has increased across the world, it has
been a net-positive for all those involved. However, developed industrialized nations did benefit
more than the others (Petersen, 2017).
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In order to be successful when dealing with foreign markets and relationships, it is also
important to mind differences in preferences throughout different areas. Not only must managers
learn to cope with time differences, you also must adapt to others leadership or communication
styles. Exchange of information is more successful and efficient when both parties involved are
comfortable and satisfied. Cultural differences and language should be carefully minded as well,
as to avoid offending a business partner or a society. Another key to success, is the sharing of
knowledge and practices. When entering into a partnership, it is intended you want your partner
to succeed so that the company in question may succeed as well. Distribution knowledge, as
well as what knowledge is relevant to the consumer should be shared openly. International
relations and business depends largely on the basis of trust, as in any relationship. Making the
effort to establish and continue a trusted relationship will lead to more successful business
transactions, customer retention, and profit in the long run (Ali, 2017).

When making decisions, the most important managerial tool is the cost-benefit analysis.
A cost-benefit analysis is a simple tool which every person most likely uses in their everyday
lives. However, it could be defined as a weighted approach to evaluating the net benefits versus
the costs of undertaking a project or making a decision. For example, in a successful company, it
could be said that expansion should be undertaken when the company is mature, and has enough
capital to fund the project. Assuming the long run future benefits outweigh the short-term costs
of material, labor, etc, the decision is easy since it will profit the company overall. However,
there are several other cost issues that arise from the process of business travel. If a company is
allowing travel, it should be sure to be deemed absolutely essential to avoid unnecessary costs.
There are several alternatives to engaging in travel, such as communication via telephone or
video conference. When in-person travel is required, it is important to engage in cost -benefit
analyses to decide the details. Not only is having an employee travel an immediate liability to
the company, but the monetary costs involved including transportation, hotels, and meals can add
up. Making decisions in regards to insurance and liability is an important managerial decision.
The company should have a workers compensation policy in place, as well as possibly issue
travel insurance for the employee. Workers compensation is an essential protection tool whether
the employees engages in travel or not. This insurance is purchased by the employing company
to protect employees from workplace injuries, as well as the company from further liabilities. It
can provide medical, disability, survivors, or rehabilitation benefits. On another note, travel
insurance is more often used when traveling internationally where other countries may not
cooperate with the domestic insurance company. Employers should ensure this protection is in
place before the allowance of an employee to travel, as to protect against liabilities and legal
action. Another cost analysis is needed in order to choose which company to engage in business
with in the most cost-efficient manner. If multiple employees travel, usually a group employee
travel insurance plan is more cost effective than a single person. Decisions need to be made
about what such benefits to include, such as accidental death and dismemberment, or even the
loss of baggage. In regards to hotel lodging and meal expenses or reimbursements, details would
need to be appropriately discussed with the accounting department. Some business expenses are
tax deductible and may benefit the company in the long run, and some would be treated as
employee wages which may increase liability of the company. An exploration of IRS
regulations is necessary, and a strategic cost analysis would need to be made in order to decide
what is the most efficient manner. One of the biggest issues companies seem to battle with today
is choosing the right travel agency, if any. A company involved in frequent travel may instead
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opt into hiring a full-time travel agent as a company employee. If travel is sporadic, it may be
more beneficial to infrequently use a travel agency to make the arrangements. There are several
corporate travel agencies vying for company business, and again, the most cost-efficient choice
should be made while ensuring not to sacrifice the comfort or safety of the employee.

Investing in your employees has proven benefits. Without wholesome employees,


business cannot prosper or succeed. Hiring a person alone comes with several necessary
investments such as training, the manpower needed to help develop skills, as well continued
investments such as health or pension benefits. Employees are a companys core investment
when it comes to production and profitability. Companies like Sage North America have been
created in response to the demand for these services. This company specifically offers tools and
training on recruitment software, applicant tracking, and performance reviews so that employees
can be more easily managed, and therefore more easily retained. Sage claims that every $1
invested per employee yields $10 in profit, and the cost of replacing one employee making $17
an hour is $10,500. These figures are eye opening, and therefore this issue should be important
to managers in order to achieve the best business results for their company (Sage.com).
Managers and companies can use these tools to invest in long term employee betterment and
monitoring, but sometimes that is not enough. Some companies may choose to hire outside
vendors to teach employees new skills occasionally as an incentive to increase their
performance. However, employees can benefit from inadvertent employee investment as well.
This is investment that occurs unintentionally during and after business travel that results in
personal growth, which then flows back to the company. To explain, it is insinuated that
traveling can broaden an employees horizons, increase their general knowledge, hone social
skills, in addition to many other factors. Of course, no change occurs overnight, but the
employee may become more productive, feel refreshed, or even have a newfound outlook on life.
This is simply a benefit that is retained by both the employee as well as the company long after
the trip has ended.

Business travel, even company mandated, on occasion can make employees feel valued
and important. To most, being chosen to be trusted to represent the company in a new or
different location is a reward of sorts. In regards to rewards, the newest idea that has been
configured into the business travel world is incentive travel for employees. Some companies
choose to take this reward of a trip or a cruise, and turn it into a competition to best benefit the
company. This is most often seen in sales-based positions for meeting sales or recruitment goals,
but is still effective. By offering trips as rewards for meeting goals instead of specifically for
completion of a work-related task can help to reduce burnout and increase company morale.
However, managers should be weary of top earners who continuously meet goals and gain
incentives. This can have a negative effect on lower performers causing feelings of
discouragement. It is important to make all employees eligible, and continue to recognize all
employees for their positive contributions to reinforce positive behavior. Some companies do
this simply through positive managerial recognition, cash rewards, or even merchandise.

Employees. Who is the typical traveling employee? According to a study done by the
Bureau of Transportation Statistics, The typical business traveler is likely to be male; work in a
professional, managerial, or technical position; be 30 to 49 years old; and have an income well
above the population average. Men account for more than three-fourths (77%) of business trips.
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This compares to nonbusiness travel where men take 54% of the trips and women 46%.
Technical, managerial, and professional occupations account for over half of all business trips.
Sales and service workers account for about 25% of trips taken. In regards to age groups, about
55% of all business trips were taken by people aged 30-49, and people in their fifties only took
about 18% of the trips. There is an inverse relationship between age and the amount of business
travel done. Typically, the more a person ages, the more the use of business travel declines.
Also, trips are typically made by those with incomes that exceed the $47,500 national average.
Because of this, it could be argued that the higher the salary or position an employee holds in a
company, the more likely they are to be engaged in business travel.

Traveling for a portion of ones job offers flexibility. Flexibility is an extremely


important factor in the workplace today that employees value. Work options can vary, but can
give people the chance to try to reach a work/life balance. This is especially important when
considering the millennial worker currently in, and continuing to enter the workforce. It allows
for a change in work environment, overall schedule, and can stimulate and increase cognitive
skills. Many prospective employees will shy away from a desk job in favor for something more
diverse and variable. Traveling gives employees a chance in order to effectively communicate in
new situations, as well as having to plan, organize, and adapt to new situations. New
environments can expose a person to a different way of thinking about their current job, and can
even create a comparative advantage compared with those employees who had not traveled.

Flexibility can expand opportunities as an employee, and make a person more responsive
to change. Also, it could be believed that when business travelers travel to a new destination, it
may create an inkling to want to invest in that specific spot themselves. If the company or
business person had not been exposed to that area, it may never have been thought of to expand
business operations to that area. This could be viewed as a good chance to encourage investment
in yourself or individual endeavors. Traveling and exposure to new societies in general hones
adaptation skills, and increases knowledge of global culture. These newly acquired skills and
knowledge could benefit the company, as well as the employee on a personal level. Being able
to work in a fluid environment and juggle shifting priorities as a valuable asset, and is something
employers look for and will appreciate.

Impact on Company.

Global Expansion. The long-term outlook of the industry is positive. Laws of


economics state that eventually the global market profit will plateau, but for now there is still
growth that needs to occur before reaching that equilibrium. The global expansion of a company
would increase the cost of operations in the short run, but long run benefits would need to be
assessed to ensure the company is operating at their profit margin, and that the risk was worth the
investment. Individual countries have realized that all countries can work more efficiently
together, and we need each other to create a harmonious society. It is a concept of nature for
things to expand and grow outward, and the same theme applies to the future outlook of
globalization within the business industry. To date, globalization has grown since the beginning
of its creation, and will continue to do so. A company who is looking to increase profit,
customer satisfaction, and overall brand recognition should without a doubt be participating or
looking to participate in global expansion. However, all things take time. Changes in the
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industry and on a global level move very slowly, but overall remain a positive trend.
Technological interconnectedness is important and plays an imperative role in the process of
future globalization, but workloads such as sourcing, logistics, manufacturing, and construction
can take time. The study of business, finance, and technology is currently in high demand, and
as many entrepreneurs make their way into the business world, our global society is sure to find
that the best is yet to come.

However, there are some risks involved with expanding on a global level. Making the
decision to take your business to the global level does not come without obstacles. One must
consider; the legalities of operating in the other country, how delivery will occur if across a
border or overseas, currency issues, cross-time zone business operations, and language and
culture barriers. Also, international law and foreign governments can be difficult to understand,
and the levels of technology and market intelligence can vary. Culture of a foreign country
should be respected as it can define everything a specific business does, from things like
marketing and advertising all the way to how and when employees take lunch. A company must
thoroughly research and understand the proper business transactions within the country prior to
conducting any business in order to maintain positive and respectful relations. Gathering market
intelligence may prove difficult in countries that may not have formal records or data collection.
It is important to gather as much information as possible in order to be successful. Technology
and logistics can prove difficult as well. If conducting business with an undeveloped country, it
is important to keep in mind the internet may not even exist, and customers may not even be able
to read or write. Lack of infrastructure and transportation routes can also be an obstacle in trying
to reach a target market and physically transport goods.

With globalization comes increased competition. The competition of a domestic


company also varies greatly from the competition of a global company. Global competition is
typically more dynamic and complex than domestic competition. As the amount of consumer
choices grows, the fiercer the struggle is between suppliers to gain market share. Although
sometimes tough to contend with from an operational perspective, competition is an important
factor in any facet of business and operations. Consumers want to acquire goods much more
quickly and efficiently than ever before, so it is important to keep production costs down as well
as keep a quick response time to competitor moves. Competitor products are direct threats and
will need to be monitored accordingly. Porters Five Forces is a great business analysis tool in
assessing industry competition. This theory analyzes the bargaining power of consumers, the
bargaining power of suppliers, the threat of new entrants to the market, the threat of substitute
products, and discusses rivalry amongst competitors (Harvard Business School). For example,
when looking at the airline industry, buying power of consumers is high as they can easily switch
airlines. Bargaining power of suppliers to the airline industry is also high as switching suppliers
usually comes at a high cost. Threat of new entrants to the industry is also high as the airline
industry continues to grow. However, the threat of substitutes is low. Aside from private jets or
other versions of air travel, there is no substitute for traveling such long distances. Also, rivalry
amongst competitors is high, as airlines struggle to retain customers and create brand loyalty.
All of these factors assessed can help managers and staff make appropriate and strategic business
decisions.
AN ANALYSIS OF BUSINESS TRAVEL 13

Positive Effects. An obvious positive effect that comes from expansion is assumed to be
higher sales and profit. Despite that it takes capital and resources to make the expansion
possible, the benefits of doing so typically outweigh the costs, in the short run. For example, in a
monopolistically competitive market, the firm can maximize its profits by producing where
marginal revenue equals marginal cost. This leaves the firm with economic profit, and therefore
is considered to be doing well. However, the process must be carefully considered and reviewed
to ensure the price or sales profit is not surpassed by operating costs. As long as profit is
possible and perceived, it will lure new companies into the industry. In the long run, economics
states that eventually, all economic profit will eventually cease, due to a shift in market demand
and the entrance of new competitors. This insinuates that in this type of market, firms will
eventually earn zero economic profit. However, the positive effects of globalization are more
permanent even long after the short-lived profit is made. Countries and economies across the
world can reap the benefits of having more access to options in the market, overall lower prices,
technology, and opportunities for less industrialized economies to interact with a larger global
network.

Once a company has been operating in the global market, competitive knowledge and
ideas will eventually be gained by exposure to new areas and ideas. This strategy can take a
while of being the newcomer before settling in to that market and locality. Compared to
competitors, a company can have an advantage in already knowing the business climate in a
particular area. By acquiring new techniques and information for different sources, the company
can gain cultural change and innovation which can eventually help boost sales. Although in
certain cases, this may lead to increased competition and tension within the market. Companies
and firms should be aware of this possibility, as rivaling businesses may eventually find it hard
to continue operations with net positives. Being in that situation can lead to acquisitions and
mergers between companies. Although typically beneficial to a company, in a market similar to
an oligopoly, increased mergers can leave consumers with fewer choices. In the long run,
mergers and acquisitions can either benefit shareholders, or disadvantage them. Despite a
plethora of studies and information, the effects on shareholders are hard to predict, and evidence
is not conclusive.

In a company that expands either domestically or globally, is given the choice of where to
begin operations next. Sociological and economical studies of different geographic areas would
come in handy here. Once a specific target customer or client is targeted, a company has a
chance at niche marketing to that socioeconomic area. Although internet sales are important and
do not require such physical operations, opening up a store or location in a specific place allows
for an increase in demand of your product within that area. The sociology of markets is a mature
area of study, and research and data can be utilized by companies in order to increase their
competitive advantage. Markets are social structures of a sort, that consist of relationships
between customers, firms, suppliers, laborers, governments as well as the economy. All aspects
are connected, and rely on each other in a truly symbiotic relationship. Rather than focus on the
economic determinants of demand, it is a good idea for a company to research population
ecology before branching out to a specific area. Although mostly used in scientific studies,
much of its framework can be applied to organizational arrangements. The study allows for
analysis of conditions in which organisms (and organizations) emerge, thrive, and grow. With
this notion, it is then possible for companies to attempt to go where their competition is not.
AN ANALYSIS OF BUSINESS TRAVEL 14

Within the last few decades, microbreweries took full advantage of the niche where their
competitors were not, and were extremely successful with a now thriving industry. This
triggered larger brewing companies to tone down, and try to refocus on crafting quality as well
as consumer preferences.

Negative Effects. The Global Business Travel Association (GBTA) notes that, all
means of travel and transport from company car fleets, rail travel to aviation have an impact
on the environment, not only through greenhouse gas emissions but also through noise, waste
and land occupancy. The GBTA has an extensive source of information for companies to use
regarding corporate social responsibility (GBTA Toolkit). Now, more than ever, consumers and
companies alike are well aware of the negative effects traveling and emissions can have on our
environment. The majority of emissions production between all modes of transportation comes
from the aviation industry. The United States Environmental Protection Agency (EPA) in 2016
determined that emissions from the engines of large commercial jets release six known
compounds that are known for causing greenhouse gas pollution, and incorporated these findings
into the Clean Air Act. Knowing this, companies can take several steps to cut down on
emissions while also simultaneously cutting down on company costs overall by reducing travel
when possible or even trying to manage multiple goals within one trip instead of making several
trips. Even the process of production has negative environmental effects. From an economic
standpoint, pollution is considered a negative externality. A negative externality is a negative
effect that is not intended, and is considered to have indirect costs. These indirect costs therefore
have a dollar value associated with them, and they most affect society as a whole. Society, its
living beings, and the earth are the only ones will have to deal with negative outcomes that arise
from the externality. One of the toughest inquiries proposed is how does one configure the
dollar amount in regards to damage to our earth? At this point is where governments intervene,
and can fine companies a monetary penalty in regards to the production of pollution, or impose a
limit in order to prevent further destruction. Companies can lead by example by being
committed to green travel and production to reduce their carbon footprint.

Because of the environmental crisis the world currently finds itself in, many investors are
being socially responsible in regards to where and how they are making investments. Socially
Responsible Investing (SRI) can be defined as the practice of integrating social, environmental,
or ethical criteria into financial investment decisions rather than focusing on general risk and
return (Cowton, 2012). Some socially responsible investors may avoid becoming a stakeholder
within a global company, or a company that permits or requires employee business travel. Since
the negative environmental effects that traveling causes could actually turn away some potential
investors, managers need to be aware of this issue and ensure they are prepared to lose these
green-market shareholders. The potential market loss or gain should be considered by
management before expanding operations. However, this group of investors can have a positive
effect in the long run by causing companies to shift their operating and travel mechanisms in
order to become more ecologically friendly.

As a companys overall network continues to grow, so does its operating costs.


Operating costs are simply the amount of capital needed for the business to operate, typically
measured on a monthly basis. The operating costs of business travel can be extensive. If
necessary, an employee would have to be hired or assigned the duty of monitoring the employee
AN ANALYSIS OF BUSINESS TRAVEL 15

travel. The other option managers may choose besides hiring a specialist to complete those
duties, would be to outsource the responsibilities to a travel agency. There are several
companies marketed specifically for corporate travel purposes, which may be more economical
cost wise. The company should ensure that it is mature enough and has enough capital to take on
a new project or expansion. These costs can consist of material, labor, benefits, compensation,
depreciation, utility and property costs. Managers should work closely with the accounting and
finance departments in order to ensure efficiency and minimize overall costs where possible.

Impact on Traveler.

Physical Effects. Although business travel may benefit the company, what about the
employees? Travel is harsh on the human body, as well as risky. Even for personal purposes, no
travel comes without risk. Whether by car, air, rail, etc., the risk can change formation, but does
not cease. Not only is this a liability for the company an employee works for, but it is a personal
risk that person is taking every time they need to commute somewhere. These risks can take
shape in several forms whether it is airborne illness or disease, terrorism, unhealthy choices,
natural disasters, or a transportation malfunction. All of these risks can occur during business
work time or personal life. There is also risk of crime occurring once youve reached your
destination. Sending an employee to a specific city or country with an increased crime rate is
also a liability to the company. Of course, crime or even terrorism can occur anywhere and
anytime, management should carefully research crime rates and recent events in the areas they
are choosing to send employees. Employees should also be equipped with the necessary
knowledge of the risks in the area, and what they can do to protect themselves. Employers have
another chance to be innovative in arming their employees with knowledge of self-protection,
and even making them aware of foreign emergency contact information. Personality also can
play a factor in risk assessment. Maybe the person is likely to engage in use of alcohol or drugs,
or put themselves in non-ideal situations. Management should also assess the employees
character to ensure a level of trust before sending them to a destination.

Surprisingly enough, many travelers are not aware of many or all of the risks involved in
regards to tropical diseases or vaccines. The CDC recommends a well-visit with your doctor
about 4-6 weeks before your scheduled trip. Vaccines should be discussed, as well as bacteria or
diseases specific to that area or country, as well as first aid, prescription information, etc. The
CDC also recommends speaking with your doctor about stress prevention and management,
healthy exercise while traveling, and healthful food choices. Information should also be given to
the traveler about the safety of food and water if traveling to a developing country. There are
several other subcategories that can be discussed depending on factors such as if the employee is
pregnant, immune-suppressed, has a chronic disease, or is traveling with children. Often times
trips can be planned last minute where the employee doesnt have enough time to fully prepare
and see their physician. Most employers seem to be lackadaisical with providing this
information as well. It is the responsibility of the employer to ensure the employee is able to talk
to a doctor before taking a business trip as well as being made aware of the risks involved
(CDC).

When an employee, or even a layperson travels, they may not have access to their
favorite cookbook, grocery store, or snacks. It is very easy in a new and unfamiliar environment
AN ANALYSIS OF BUSINESS TRAVEL 16

for a person to relax on whatever health restrictions they had for themselves, and choose what
may be convenient at that time. Maybe theyre late to a meeting and only fast-food is available,
or theyre completely new to an area so they stop in the first restaurant they see to eat. In
addition to these events, hotels very rarely have a kitchen, as well as any kitchen amenities,
which makes it difficult to buy and prepare food you would like to. Because of all these
predispositions, it is easy for a traveler to abstain or reduce exercise as well as make poor meal
choices. Both of these practices over a period of time may cause an overall decline in health.
Again, employers should be more vigilant in this area of educating the employee with healthy
options or choices once they will have once they reach the destination in order to promote
optimum health.

Psychological Effects. For some people, traveling and being out of ones normal
element can cause a stressful reaction in those who may be prone. To others, a break in the norm
could be refreshing, but the stress of a new schedule and environment can affect some travelers
negatively. A little bit of stress can be good, healthy, and protect us in harmful situations.
However, stress is easily compounded by daily responsibilities. Employees in general,
especially those prone to business travel, are typically not well educated in how to handle and
manage these emotions. If they are well educated, most of the time it is because of their own
willpower to help manage the situation. Several factors can cause travel stress, from delayed
baggage, to an internet outage, to having to fly economy. Also, it is important to note that
gender plays a role in travel stress. Women experience a higher stress intensity level than men
do. Aside from gender, the three basic stress categories that most gender-neutral stressors fall
into are; lost time, surprises, and routine breakers. Lost time can consist of times when there is
not access to internet or email, which cause a person to feel that it is difficult to focus on work.
Surprises can consist or rerouted flights, lost baggage, or forgetting to pack a necessary item.
Routine breakers can consist of not having your usual lunch or being able to work out after your
work day is completed (Segalla, 2014). Stress is often not a well-managed topic in the
workplace, and it can be difficult for management to tackle. Managers should ensure that proper
stress management techniques are implemented in the workplace, and employees should be made
aware of outside resources that are available to them if they need help.

Stress and anxiety can also trigger feelings of guilt, anger, and resentment. Guilt could
manifest from having to leave their family or significant other, or missing important events back
home. Anger and resentment can manifest towards their job for making them travel, if the
employee had no choice but to go. If job resentment occurs, this can backfire, and negatively
spill into the workplace, causing a decrease in job productivity. Stressed employees may feel
disengaged, be less productive when working, and have higher levels of absenteeism. If stress is
not properly managed, it can lead to detrimental health effects. It is important to make the
employee/traveler aware of self-help techniques or relaxation methods. If untreated, stress is
dealt with differently by all individuals. It could lead a person to engage in deviant behavior, or
to make negative choices. Once the employee arrives home, the spouse or family could be a
victim of said stress. For an example, to illustrate the effects of stress on families, in 1982
Jackson & Maslach studied 142 police couples. Wives described their familial interactions with
their stressed spouses as being more likely to display anger, spend time off away from the
family, be less engaged in family matters, and have unsatisfactory marriages.
AN ANALYSIS OF BUSINESS TRAVEL 17

Hotels and resorts try their best to make travelers stays feel like a home away from home,
from the music in the lobby all the way down to the dcor. However, to most travelers, it is still
not the same. Depression and loneliness can also occur if away from the home in those who are
prone. Often times, the employees find themselves in a new city with no one they know, and not
much to do. Simple homesickness can occur anywhere at any time, and may lead to some level
of mild depression. If a person travels an excessive amount, they could even become a traveler
by identity. This is considered to be a person who suggests that traveling defines them, and is a
major part of their lives. They may call themselves a jet setter, and really enjoy the lifestyle.
However, eventually people stop or reduce the amount of traveling they do, whether for work or
pleasure. Like any hobby or passion, once the traveling stops, it could lead to a void or an empty
feeling, which can also trigger depression. Depression can have a significant impact on a
persons life, as well as cause difficulty with completing daily tasks. A decrease in productivity
while on a business trip can have high societal costs. Symptoms and effects of depression or
loneliness can have an effect on the quality or work done, overall indirectly harming the
company and trip objectives.

Physiological Effects. Jet lag. The dreaded fatigue that can hit a traveler when traveling
across time zones. The term is usually casually talked about as an inconvenient pest that hinders
work and productivity, but in actuality the condition has been proven to be a sleep disorder of
sorts, resulting in changes to our bodys natural biological clock. Not only can a travelers
circadian rhythm be thrown off by the change, but if flying, travelling by airplane can sometimes
be exhaustive on the body. Travel fatigue normally will last no longer than a day, but effects are
more extensive if flying across multiple time zones. Jet lag effects can last for over a week if
crossing 10 time zones or more (Waterhouse, 2004). Sleep loss and its effects can also do
unnecessary damage to the body, which results in exhaustion and fatigue, brain fog, and
decreased productivity. Again, employers can ensure their employees are equipped with best
practices on managing jet lag and fatigue as to ensure the effects are minimal as possible.

Managers must decide how to tackle the negative effects that arise from traveling as well
as the positive effects as well. Travel, for any reason, can cause stress. Although it is supposed
to be a happy and enjoyable time, it is human nature to worry about packing, making sure
transportation is arranged, monetary issues, etc. In an ideal state, the body is in an internal state
of homeostasis and balance. Homeostasis is the bodys attempt to maintain a stable internal
environment despite fluctuating external conditions. Prolonged stress can disturb the bodys
equilibrium and its natural homeostasis processing. Stress is viewed by the body as a threat, and
therefore initiates the fight or flight response. The nervous system is highly involved with this
process, along with hormones and the brain. The effects of the release of these hormones can
manifest in the human body in several ways. If the body cant maintain a normal energy
balance, this could contribute to diseases such as diabetes, high blood pressure, strokes, or
obesity. Sustained stress can even interfere with fluid levels, body temperature, and levels of
calcium in the blood. Both physical and emotional events can produce stressful reactions on the
body which affect basic physiological mechanisms (Kotas, 2015).

Traveling abroad is known to take people out of their comfort zones, and could even go
as far as changing a persons personality permanently. To an employer, this could be an
investment worth making. These changes could also have an effect on offsetting the negative
AN ANALYSIS OF BUSINESS TRAVEL 18

personality changes that can arise with business travel. In 2013, Zimmermann and Neyer
conducted a study comparing a group of students who traveled abroad compared to a control
group of those who did not. Prior to traveling, participants were given a personality test which
measured the Big Five personality dimensions. After returning from travel, the test was
administered and taken again. Findings indicated those who traveled abroad showed an increase
in openness to experience, agreeableness, and emotional stability. These changes were also
linked to the participants social network growing, due to meeting new people in the new
locations (Journal of Personality and Social Psychology, 2013). Employers could use this as a
form of inadvertent employee investment. By exposing their employees to differences in
language, food, and outlook, their perspective on life could be changed and renewed in a
permanent manner that will continue to benefit the company for some time to come. These
positive changes are simply a side effect of business travel, rather than a direct training
expenditure on the company.

Impact on Family Life and Friendships.

Relationships. The amount of time a traveler is gone for a trip, as well as the frequency
is extremely important to the severity of the effects on a spouse or family. The concept behind
marriage is to have and build a friendship and support system. When one partner is frequently
gone, or traveling for a long period of time, this separation can have negative effects on the
relationship. However, this topic has not been well measured, and provides little data. It is
suggested that further research within this topic is reviewed. A longitudinal study would
thoroughly provide how the effects of the traveling affects marriages and relationships over a
length of time. There are several variable factors that can skew different results. These include;
the distance traveled, the frequency of travel, and the duration of the trip(s). Since it was
annotated earlier that most business travelers are men 30-49 years old, the typical spouse and
gender affected is indeed married women. In this context, comparing business travel within the
government as well as the private sector is imperative. Since most long-term business travel is
done by military or government workers, comparison will be provided to show the different
effects in both sectors.

Any time away from a spouse can threaten the solidarity of a relationship. From an
economic perspective, both spouses must consider the opportunity cost of their sacrificed
options, the start-up costs associated with remarriage, and an interest in the welfare of their
children, if they have any. The non-traveling spouse may do a cost-benefit analysis of the
relationship, and make a decision to end or continue it. Another concern is drifting apart
emotionally, or otherwise. Whether it be a trip to the grocery store, or a lengthy business travel
trip, situations may not be the direct cause of distress or uninhibited behavior. However, they
may give the individual the opportunity to act upon prior destructive motives or ideas. Known
reasons for divorce include cheating and adultery, lack of emotional commitment, and non-
fulfillment of marital obligations (Waite, 2000). During the spouses time away, the remaining
spouse must find ways to cope with the loss of contributions and marital obligations from the
other. They may have worries of the possibilities that could occur while separated. They may
harbor resentment towards the traveling spouse for not helping out with housework, children, etc.
while they are gone. Spouses of frequent business travelers often reach out to friends, family,
and even online support groups and blogs to help with coping. These resources give tips to the
AN ANALYSIS OF BUSINESS TRAVEL 19

lone spouse on communication, coping, and reminders to push through in tough times due to
both individuals agreement to engage in a marital commitment.

In regards to length of travel, it seems the longer the travel period the more detrimental
the effects on those left behind. For example, in regards to long term trips, military deployments
are probably the victor, lasting the longest. Spouses may see an increase in the amount of stress
in their daily life, due to the service member no longer contributing to the household production,
but also continuously worried if their loved one is in danger. This can lead to a decrease in
overall efficiency, as well as a decrease in marginal benefits of leisure as well as work. Military
spouses and family members are less likely to hold a steady job, and less likely to work full time.
Overall, this contributes to economic insufficiency. (Savych, 2008). On the other hand, after
several long tours or trips, spouses may adapt their behavior to create a new norm. All of the
aforementioned factors can lead to a gradual emotional distancing between spouses, as well as
individual stress, anxiety, or depressive issues. According to Espino in 2001, a sense of well-
being is created by having a surplus of resources, and that stress is the result of a perceived loss
of resources. Because emotional issues can lead to health issues, it is also not surprising that
spouses of travelers filed claims for medical treatment at a rate of about 16% higher than spouses
of non-travelers (Dimberg, 2001).

Children are extremely dependent upon parents for monetary, physical, and emotional
support. If a person travels frequently and has a young child, it is important to consider the
possible detrimental effects this could have on the child during the period of separation, and even
after. Bowlbys Attachment Theory originally suggested that children separated from their
mother exhibit a pattern of emotional reactions. It was believed that the first few years of a
childs life are the most important. However, the theory is gaining more and more attention in
regards to relationships with other people that a person can have across their lifespan. This
indicates that the children can form the attachment to either parent, a sibling, or even major
caregiver. Ideally, this attachment and relationship sets the stage for all future relationships in
the childs life. For example, children of deployed military spouses may not even recognize their
parent upon arrival home, depending on the length of the trip. The effects can even be compared
to parents who are incarcerated. Because of the lack of recognition as well as the deteriorated
relationship, children can exhibit emotional distancing. Bowlby suggests that the child will
eventually reproduce these behavior patterns in future long-term relationships, and their own
parenting may not be successful (Bowlby, 2014).

Depending on the type and duration of travel, the travelers social life can also endure
negative effects. Of course, the traveler simply may not be around if they were invited to plans
that were made during a specific travel period, but also communication could be negatively
affected. A person traveling is usually difficult to get in touch with depending on access to
communication devices, internet, or time differences. Also, the type of person engaging in
business travel is usually in a mid to upper career level position, and with it comes large
responsibilities. The more responsibilities a person has, usually the more their social life suffers
and falls by the wayside. The traveler should rely on the use of technology when appropriate, as
well as social media to try and maintain communication and friendships, both old and new.
However superficial internet friendships may be, positive affirmations and communication on
social media can support overall positive mental health.
AN ANALYSIS OF BUSINESS TRAVEL 20

Special Events. Missing milestones such as anniversaries and vacations can leave a
spouse or significant other with feelings of despair and disappointment. Missing other important
events such as weddings, birthdays, or graduations can be upsetting also. Maybe the traveler is
away on business travel for the birth or the death of a loved one which can be utterly devastating.
Missing an event or having something happen while you are gone can stay with a person for a
lifetime. Being disappointed, whether it be the traveler or the family member back home, can
lead to a greater frequency of health problems. If disappointment and sadness occur for a
prolonged period of time, chronic stress problems or depression can arise. Some
disappointments are provable while others are avoidable. Employees may not be able to clearly
distinguish between the two in times of despair, therefore feeling guilty, and letting emotions
spill over into workplace or business activities (Ashworth, 2016). Companies can benefit and
increase employee retention by being flexible and empathetic when it comes to preplanned
events or unplanned mishaps occurring.

Readjustment. After an extensive bout of traveling and being away from family, friends
and loved ones, one may try to make up for lost time. Trying to make up time lost can be easier
than it sounds. As happy as initial reunions are, excitement can wear off once the reintegration
process begins. However, this process can prove difficult upon return to the household due to
the disruption of family routines and roles. In the example of a military deployment, after being
gone for a significant period of time, people change, children grow, and reunions can even be
hard, and even awkward at times. Non-traveling spouses, in a sense, can get used to life
without the traveling spouse present, and upon return can also exhibit isolation behavior. There
is difficulty in the relationship of picking up where it left off. Couples typically must delve right
back into the realities of life before the separation, and discuss topics such as money, parenting,
communication, etc. fairly quickly. Sometimes a change can bring feelings of resentment, but
communication is key to working through it, and the feelings are typically temporary. After a
long absence of any kind, it is important to get to know each other again, and fall back into the
routine that once was.

Coping skills are necessary for any change in life. Whether a spouse or parent has left on
a trip or is coming back home, both processes can cause stress. There are several mechanisms to
cope with stress and other emotions, some of which are healthy, and some are not. If a spouse or
family member cannot cope in a healthy way, the emotions can cause a range of mental and
physical health issues, and even increase disease risk. During a transition phase, a person may
turn to alcohol or drugs as a coping mechanism. A person could begin gambling, engaging in
risky behavior, overeating, excessively shopping, turning to prayer, or even using humor. In
regards to children, they typically cope differently than adults. Children may display short term
coping responses such as emotional or behavioral outbursts or upset. If continued, this behavior
can possibly turn into long term behavioral problems, causing problems in school and into
adulthood.

When a person may be traveling and away from the home for a long period of time, or
frequently, reunion struggles can occur between family members in the household. Counseling
may be necessary to help facilitate the coping and reunion process. Often times, spouses
feelings, whether negative or positive, may spillover onto the other. If these feelings cause
stress, depression, or otherwise, it can put unnecessary strain on the relationship. Typically,
AN ANALYSIS OF BUSINESS TRAVEL 21

children can get the help of a school counselor if necessary, but adults must typically rely on
private health insurance or paying out of pocket to get assistance. Employees in this situation
could benefit from an employee services office that could provide free counseling or referrals.
The military enlists the use of family readiness offices and provides help and support while the
person is gone as well as their transition home. Private sector companies that employ traveling
employees are lacking in this regard.

Conclusion.

Challenges. Overall, the challenges of business travel do exist if you lead a family
oriented lifestyle. Spouses, children, and friendships can suffer depending on the length and
frequency of trips made. If the employee has a family or even a serious relationship, the person
must be able to deal with leaving for periods of time, and the possible negative effects that can
arise from the absence. There is the possibility of negative coping mechanisms, reunion
struggles, and potential counseling to overcome issues.

Another challenge is the physical and mental effects frequently travelling can have on a
person. One must prepare, and take it into their own hands to initiate gaining the knowledge
necessary to safely travel. This requires working with the employer, a physician, as well as
oneself. Knowing your health risks and limitations, as well as possible emergency procedures.
A traveler must also try to overcome the obstacle of staying healthy and active while traveling.
It is a sincere effort to eat as healthily as possible while also trying to stay active in a new and
unfamiliar environment. Avoiding travel stress is also a challenge. An employee must engage
proper stress management techniques in order to accomplish the goals of the trip properly and
prevent negative effects.

From an industry perspective, increased costs and competition can put a strain on
business functions. There is societal as well as governmental pressure to keep carbon footprint
light while also trying to gain a larger global market share. Keeping employees healthy and safe
during travel while simultaneously trying to keep possible liabilities down is a challenge.
Attempting to offer employees benefits in regards to mental and familial issues that arise from
travel needs to be addressed. Trying to find a cost-effective way to provide those services is a
sizable challenge.

A challenge of the effects of the entire industry are lacking due to lack of longitudinal
studies. It is difficult to measure the long-term effects that the business travel job had on
relationships and health. It would be interesting to see the outcome of frequent business travelers
in comparison with outcomes of relationships as well as health problems. Longitudinal studies
would have the opportunity to show a clear and valid pattern reoccurring overtime which can
then be studied and interpreted. Business connoisseurs as well as psychologists and sociologists
could find interesting developmental trends from the collection of data.

Opportunities. Having the opportunity to be a business traveler is a great way to travel


and see the world, while also maintaining a stable career. The career path is an interesting one
for millennials who value travel, and may not be ready to settle down and start a family just yet.
While traveling, the employee can ascertain many experiences they otherwise never could have.
AN ANALYSIS OF BUSINESS TRAVEL 22

These experiences can leave them with positive memories, social skills, and even positive
personality changes. These skills can stay with the traveler a lifetime, and have a positive return
while in their personal life or the workplace, increasing their value and productivity as an
employee.

Companies and businesses who engage in business travel have the opportunity that seems
to be very much needed, by offering familial or personal counseling services to those who
engage in business travel. Typically, this is done through an employees health insurance plan,
and on their own time. However, companys seeking to be innovative can use the information
provided here in order to be unique in the business world. By offering counseling at no charge
or during work hours could increase employee retention, but also improve the employees family
life and happiness levels. Employees could also benefit from more preventative health screening
measures and personal risk evaluation. Knowledge can be distributed by the company on how to
stay active and healthy while traveling.

The opportunities within the business travel industry and abundant, and only going to
continue to grow. The industry has been upward sloping since its inception, and does not show
signs of significantly slowing down anytime soon. Business travel is a major contributor to
domestic as well as foreign economies. Developing nations as well as established nations will be
beginning and continuing to interact within the global business network. The process of
globalization itself is currently benefitting those countries involved, and will continue to do so in
the future via interconnectedness. By means of market knowledge sharing between entities,
companies will benefit by increasing efficiency and innovation which will then be returned to
consumers in the market. Companies also have the opportunity to expand their brand, customer
base, as well as partake in sociologic profiling in order to niche market. Ultimately, by sharing
knowledge, working together, and embracing unity, countries can face the various problems of
the world together.
AN ANALYSIS OF BUSINESS TRAVEL 23

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AN ANALYSIS OF BUSINESS TRAVEL 25

Figures

Figure 1. Shows growth of Asian passenger markets within the travel industry. Note by 2035

China will surpass the U.S. for highest number of journeys.

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