The pandemic posed all kinds of challenges for small business owners, from lockdowns to staff shortages, but travel restrictions that prevented them from taking a break or connecting in person were no doubt one of the biggest downsides.
In my role at American Express I work closely with small business owners, and along with the many other challenges that the pandemic brought to the community, the drop off of face-to-face, in-person connection took a big toll on how they were able to operate. While lockdowns may now seem a distant memory for us in Australia, as we move into 2023 the community continues to face a host of challenges with increasing cost pressures, staff shortages and continued supply chain challenges.
Despite continued uncertainty, travel is back on the agenda with Australian Bureau of Statistics data showing there were 1,040,550 international departures in September 2022 alone, an increase of 98,340 on the previous month.
Keen to make up for lost time, GlobalData research suggests demand for longer stays has grown considerably since the pandemic began, with trips of 10 nights or more now the second most popular option behind a break of between four and six nights.
This sentiment resulted in a spike in ‘blended travel’ or ‘bleisure’, where individuals combine business with leisure, taking a personal vacation and working while away to extend their trip.
This trend is booming amongst the small business owner community, who understand they need a break after a difficult few years but may not feel like they can step away from their business for the full duration of their trip. Indeed, new American Express research shows 49% of small business owners are planning at least one domestic blended trip in 2022, and 37% are planning a blended overseas trip.
Why blended travel has emerged
The research identifies that 31% of small business owners who wouldn’t have previously taken a trip mixing business with leisure pre-pandemic would consider taking one now.
Why this shift in attitude? COVID-19 forced organisations to make massive transformations, such as moving to a fully remote working model or even switching to online business models. While restrictions have eased, remote and hybrid working are here to stay. The Property Council’s Office Occupancy Survey for July 2022 shows occupancy stands at 52% in Sydney, 38% in Melbourne and 53% in Brisbane, with 48% of survey participants citing greater flexibility as a major driver for remote working.
This opens the possibility of ‘blended travel’ to a wider audience than ever before.
The benefits of blended travel
47% of Australian small business owners’ health and wellbeing suffered due to an inability to take a break while travel restrictions were in place, according to the American Express research. Pent-up demand to travel goes some way to explaining this change of habit, despite 67% saying one of the only times they can switch off from business is while travelling.
It’s not just a desire for a change of scene driving blended travel bookings, as 39% of small business leaders say working while on a blended trip helps them feel more productive, and 24% say blended trips are more fun than regular business trips.
Other factors that could encourage small business owners to try a blended trip, include visiting new or unexpected places (29%), experiencing different locations (26%), feeling inspired when they work from a different location (26%) and taking advantage of cheaper fares (22%).
Younger generations of small business owners have embraced the blended travel trend most, with Millennials (49%) and Gen Z (45%) most likely to take a blended trip.
It’s clear the rise of blended travel has been welcomed by small business owners. It will be interesting to see if the trend continues and grows as more people become aware of the benefits of extending a break by working remotely.
Have you taken a blended business trip yet, and what would persuade you to book one?
About the American Express Business Class research
*Small business owner/manager is defined as someone who owns or manages a business with up to 19 employees.
The research was commissioned by Ogilvy PR on behalf of American Express and was conducted by Lonergan Research in accordance with the ISO 20252 standard. Lonergan Research surveyed 517 Small Business Leaders in Australia aged 18+. Surveys were distributed throughout Australia including both capital city and non-capital city areas. The survey was conducted online amongst members of a permission-based panel, between 6 and 13 June 2022. After interviewing, data was weighted to the latest population estimates sourced from the Australian Bureau of Statistics. Age groups are defined as Gen Z (ages 18-24), Millennial (ages 25-39), Gen X (ages 40-59), and Baby Boomer (ages 60+).