Business Travel Soars Near 2023 Levels Showing Strong German Corporate Activity

Business Travel Soars Near 2023 Levels Showing Strong German Corporate Activity

Last year, employees of German companies traveled for business a total of 116.1 million times, representing a significant increase of nearly eight percent compared to the previous year. This number is almost as high as the figure reported for 2023, which remarkable given that two years of recession have passed, according to a cross-industry survey of 800 companies reported by Spiegel. The survey authors conclude that physical presence remains indispensable, even in times of crisis, suggesting it is even a survival strategy. They argue that trust can only be built through face-to-face interactions, implying that video conferencing solutions are insufficient.

Interestingly, the segment driving this travel boom is not the major corporations like Volkswagen or SAP, but rather small and medium-sized enterprises (SMEs). Companies employing between ten and 500 people account for more than three-quarters of all business trips. Their travel activity increased by 5.6 percent-a growth rate five times faster than that of large corporations. A likely reason cited is that SMEs often lack departmental resources to analyze markets remotely; thus, when a client partnership is at risk, the managing director frequently travels there in person.

Despite this increased travel, SMEs are facing the highest cost pressures. They are responding by making their stays shorter and booking travel earlier, often opting for more economical travel classes. Thirty-four percent of all trips taken by employees of SMEs now last a maximum of one day. Consequently, the average cost per business trip across all company sizes has dropped to 418 euros, marking a reduction of 4.8 percent from the previous year.

The most impactful cost factor is the mode of transportation. Rail travel has successfully challenged air travel for domestic routes, with 52 percent of all domestic journeys now occurring by train (an increase from 44 percent in 2024). Domestic flights play a much smaller role, which is partly attributable to the reduced flight availability. Only 13 percent of business travelers use planes for trips within Germany, roughly half of the rate from the previous year. This shift is likely driven by a cost calculation: traveling by train avoids the time lost traveling to and waiting at the airport. Furthermore, it allows travelers the valuable ability to work while on the train.

The positive momentum appears set to continue. Sixty-two percent of the surveyed companies anticipate even more business travel in 2026, while only four percent expect a decrease. In 2024, almost no company sent substantial portions of its staff on business trips, whereas today, nearly half of them do. This suggests that business travel is no longer merely a privilege reserved for top management; it has become a standard part of professional life.