The way small businesses operate has changed significantly in the past few years. COVID-19-related restrictions halted travel plans and minimised face-to-face interactions, meaning small business owners had to be more adaptable than usual.
Technology that enabled a switch to virtual meetings and conferencing offered a vital lifeline, helping organisations stay in touch with partners and customers and, in some instances, allowed them to continue trade.
Small businesses continue to reap the rewards of this technology, but working closely with the community as part of my role at American Express consistent feedback I’ve heard is that nothing can replace the value of face-to-face connection.
For this reason, business travel, which returned this year, will continue to be a priority for many small business owners as we move in to 2023. New American Express research shows many small business owners are already taking advantage of its return, with 50% telling us they planned to take a domestic business trip before the end of 2022, while 37% said they were planning at least one international trip.
Why travel matters
47% of small business owners surveyed for the American Express research say their mental health suffered from the lack of a break in the form of a personal vacation while travel restrictions were in place. We also heard how travel improves their outlook and ability to run their business.
The return of business travel brings similar benefits, from growing relationships to boosting skills. Despite the rise of virtual conferencing, the return of business travel didn’t come a moment too soon in 2022.
One of the major drivers to get back on the road (or in the sky) has been to boost face-to-face communication and interaction. 37% of small business owners say they’ve booked business travel to re-connect and nurture relationships with customers, and 36% with suppliers. 67% also believe travel helps build and maintain customer relationships.
There are other benefits too, with 42% saying regular business travel boosts their team’s mental wellbeing, and 41% saying it helps innovation. Small business owners also cite the chance to learn new skills (59%) and network and grow (48%) as other key value-adds.
While issues such as inflation, staff shortages and ongoing economic uncertainty continue to pose challenges, it’s clear as the return to travel continues it’s a welcome boost to small business.
Business travel is here to stay
Interestingly, the youngest (Gen Z) small business owners are pioneering business travel as a knowledge-seeking exercise in 2022. 57% of this cohort say business travel allows them to stay on top of current trends, putting them ahead of Millennial (53%), Gen X (46%) and Baby Boomer (40%) leaders.
A 2019 report, Understanding Generation Z published by McCrindle Research Pty Ltd, suggests this generation has been shaped differently to others. It highlights how Gen Z seek leadership opportunities and most value culture (the workplace community), purpose (the ‘why’ of the organisation), and impact (the contribution the organisation is making), which may signal the rise of a new kind of business.
While virtual communications have made life easier for small business owners, they remain eager to step away from the laptop and connect in person, regardless of generation. With benefits to growth, wellbeing and innovation, it’s clear business travel still has a major role to play for today’s Aussie small business leaders.
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+).