The State of Corporate Travel & Expense 2022

THE STATE OF CORPORATE TRAVEL AND EXPENSE 2022 Presented by +

The State of Corporate Travel and Expense 2022 2 SKIFT + TRIPACTIONS Introduction New Trends in Spending and Remote Work The Return of In-Person Events and Meetings A New Approach to Employee Safety and Wellbeing How Will Variants Impact the Comeback? The Skift and TripActions State of Corporate Travel and Expense Survey Business Travel Gears Back Up The Integration of Payments and Spend Management The Rise of Remote Work and Team Travel Higher Levels of Care and Support The Growing Need for All-in-One Travel Platforms Interview: How Events Are Supporting Business Travel Recovery Conclusion 7 8 8 9 9 11 14 17 21 25 30 32 37 TABLE OF CONTENTS ABOUT SKIFT Skift is the largest industry intelligence platform providing media, insights, and marketing to key sectors of travel. Skift deciphers and defines trends for global CEOs and CMOs across the travel industry through a combination of news, research, conferences, and marketing services. ABOUT SKIFTX SkiftX is Skift’s in-house content studio. SkiftX produced this report in partnership with TripActions. MASTHEAD Vice President, SkiftX / Katherine Townsend Research Editor, SkiftX / Jeremy Kressmann Senior Editor, SkiftX / Alison McCarthy Content & Event Manager, SkiftX / Anna Zawislak Project Manager, SkiftX / Lena Elhibir Designer / Joanna Gonzalez

The State of Corporate Travel and Expense 2022 3 SKIFT + TRIPACTIONS The 2021 edition of Skift’s and TripActions’ annual forward-looking review of the corporate travel and spend management examined the rethinking underway about how the sector would emerge f rom the impacts of Covid-19. At that time, the future shape of off ice and work culture, travel policies, safety, and the overall reorientation of business travel planning and programming in the post-pandemic environment was still uncertain. One year later, corporate travel and spend is recovering at a marked clip, and our data reinforces that. There are plenty of reasons for uncertainty, but there are also plenty of reasons to look forward to 2022. One area of evolution is with the products and services offered by corporate travel and spend platforms, which must continue to adapt to meet the changing needs of corporate travelers. As Skift explored in a June 2021 article, that may well mean restructuring and even refinancing to gain a competitive edge for recovery . Another key area of interest is how quickly business travel will fully return. U.S. domestic travel made a dramatic rebound this summer, with travelers surging back to major urban centers that they had avoided during the height of the pandemic. Comparative data f rom TripActions f inds that summer volume was up across the board in 20 major U.S. cities, led by Las Vegas and New York City, up 519 percent and 471 percent, respectively, over summer 2020. Assuming this trend continues, domestic travel is on track to reach pre-pandemic levels as early as 2022. While lagging behind the leisure segment, business travel is projected to catch up at a similar pace. “We have a pretty aggressive outlook on business travel recovery that is concretely supported by our booking data,” said Ciara Govern, chief customer EXECUTIVE SUMMARY off icer at TripActions. “At 5 to 10 percent growth week-over-week, we are already approaching pre- Covid booking levels. That is 100 percent reality — and I am confident that we are on course to meet and exceed those levels by early 2022.” At the same time, companies are bringing employees back to the office — and even, in industries such as banking and finance, requiring their return — while other sectors are navigating a future of remote work and team travel. And in bellwether destinations like Las Vegas, large-scale meetings, conventions, and live events are surging anew. As the Wall Street Journal wrote in July, “ The Las Vegas Business Trip is Back (Mostly) .” How these developments will impact business travel has yet to be determined. However, early data f rom the industry suggests that remote work’s impact on employee trips is not an all-or-nothing proposition. Some business travel may decline, while other new forms of work trips, like offsites and team meetups, may increase in f requency. This latest report f rom Skift and TripActions incorporates survey-based feedback f rom more than 1,100 global finance and corporate travel and spend managers, as well as 500-plus business travelers, with insights from industry leaders. And it finds a generally improved outlook over last year aligned with the developments noted above. Of course, the environment remains dynamic, as markets and economies conf ront the spread of the Delta strain and other coronavirus variants across the U.S. and abroad. The lack of universal access to vaccines, compounded by a patchwork of divergent governmental policies and travel limits, also present near-term challenges for a globalized recovery.

The State of Corporate Travel and Expense 2022 4 SKIFT + TRIPACTIONS Yet amid these curveballs, new technologies and other solutions born during the pandemic will help alleviate challenges, while setting corporate travel on a reimagined and retooled course for the future. Within every crisis lie the seeds of opportunity; and as with any departure f rom the status quo, new assumptions and paradigms point to the definite silver linings playbook for business travel. These changes are not confined to the management and experience of travel. Continuing the trend f rom last year, there has been even more of a focus on expense, payments, and reimbursements. The result: improvements in modern, streamlined spend management tools that are creating even more visibility, control, and efficiency over spend. The bottom line, according to the available data: Domestic and short-haul corporate travel and spend are recovering at a marked clip. The road ahead may remain unusual for a while, but there are many reasons to look forward to 2022, including an increasing volume of international travel.

The State of Corporate Travel and Expense 2022 5 SKIFT + TRIPACTIONS EXECUTIVE LETTER Dear corporate travel professional, Despite the continuing challenges of the pandemic, businesses report high traveler confidence. And the data backs up those anecdotal reports, showing that when borders open and people can move safely, they return to travel. It’s therefore imperative that every company is prepared—which includes having the right travel partner by your side. After all, today’s most successful travel leaders demonstrate a razor-sharp focus on health, sustainability, and the role that travel plays in business success. They’re driving forward the corporate travel agenda and the critical role of in-person meetings—not only in client acquisition strategies, but also in achieving cultural cohesion across a global organization. Forward-thinking travel and spend management platforms can help support this agenda, having evolved in step with changing buyer needs. At TripActions, for example, marrying technology and service has been key to delivering a new generation of solutions, enabling global visibility as well as the ability and agility to quickly react to local market developments. The pandemic has accelerated our adoption of technology and simultaneously raised our cross-platform service expectations. In markets where the percentage of domestic travel is high, we’re seeing a strong return to online booking. At the same time, the complexity facing busy professionals who are crossing international borders has driven a rise in demand for white glove service. Demand for an elevated level of care has become a high priority, in order to provide that all-important reassurance to corporations and travelers alike. As CEO of Reed & Mackay, I am proud that as part of the TripActions Group, we are collectively and seamlessly delivering enhanced value to our 5,000+ customers. This comes not only through our global buying power (in excess of $5 billion), but also through the game-changing collaboration that takes place when you bring together the very best in tech with the best in service. Today, the TripActions Group is stronger than ever. But we’re always thinking two steps ahead, in order to keep delivering a travel and spend solution that not only helps drive business for our customers, but also offers them something even more valuable: peace of mind. Fred Stratford CEO Reed & Mackay

The State of Corporate Travel and Expense 2022 6 SKIFT + TRIPACTIONS Hello Travel. Hello Savings. www.tripactions.com/skift Fast becoming the default for corporate travel and spend management, TripActions is the leading cloud-based T&E platform that combines industry-first technology with best-in-class travel agency service. Trusted by travel managers and finance teams alike at 5,000+ companies globally, TripActions leverages real-time data to keep traveling employees safe, control costs, and save time. www.tripactions.com

The State of Corporate Travel and Expense 2022 7 SKIFT + TRIPACTIONS INTRODUCTION It’s been a unique year for corporate travel and spend, but there’s robust industry momentum pointing to a full recovery as early as 2022. The U.S. Travel Association’s Travel Recovery Insights Dashboard , which is updated monthly, reveals steady and faster-paced improvements in key metrics including hotel demand, air trips booked, travel spending, and group room nights. Highlights f rom the summer of 2021 included Global Business Travel Association (GBTA) data, which revealed that more than three-quarters (77 percent) of members and stakeholders now feel their employees are willing to travel for business in the current environment. Corroborating this trend is a traveler sentiment survey f rom global management consultants Oliver Wyman. The findings, published in early August 2021 and based on feedback f rom 5,300 respondents in nine countries, are brighter by far than those in reports f rom May and October 2020. “Business travelers are optimistic overall about the return of corporate trips,” states the report’s summary. “Globally, about 75 percent of business travelers expect to travel the same as or more than they did pre-pandemic. In the US, nearly 80 percent of US business travelers plan to book travel in the next three months.”

The State of Corporate Travel and Expense 2022 8 SKIFT + TRIPACTIONS NEW TRENDS IN SPENDING AND REMOTE WORK In addition to these optimistic signs, another big change is underway within many organizations: a wholesale shift in how they think about f inancial investment (and better oversight) for growing expenditures such as employee travel, worker benefits, and home office expenses. With many employees working remotely, the pandemic has “led to the reshaping of employee expenses,” found The Economist . From job functionality to fitness of body and mind, policy now has to flexibly consider new items — everything from home office supplies, software subscriptions, and gym memberships to more atypical expenses like aquariums and gardening supplies. The pandemic also created a new playbook for payments, as spend management platforms looked for opportunities to be more strategic about how business travel spending fits into the organization’s broader f inancial goals. This includes a desire for more holistic, and real-time, information about spending trends related to business travel, along with growing recognition of how employee expenditures fit into company spending plans. These trends are part of the larger shift into a new orbit of expense management strategies and tools. Organizations and business travelers alike are embracing the accelerating movement toward unifying all company-related expenses into one platform that focuses on transparent tracking, simplified reconciliation, and real-time reporting. Drivers of change include rewarding employees for making smart, cost-effective travel decisions with incentives that redefine spend management policy and influence purchasing behavior. THE RETURN OF IN-PERSON EVENTS AND MEETINGS Meanwhile, large-scale meetings are also back in gear. In early August, event technology powerhouse Cvent counted some 1,245 in-person attendees among the 13,500 total registrants for the first-ever hybrid version of its annual Connect user conference. The event was the latest in a run of large conferences with significant in-person attendance held since April in Las Vegas. The bellwether destination is also welcoming back sellout live concerts and sporting events at Allegiant Stadium and other venues. This positive momentum aligns with larger meetings industry trends. According to Cvent, for example, group bookings for October 2021 are just 22 percent below 2019 levels. Improving numbers are also lifting optimism in the airline industry. On Delta Air Lines’ Q2 earnings call in July 2021, CEO Ed Bastian expressed confidence about business travel recovery based on rising corporate sales volume. Bolstering Bastian’s outlook is the 40 percent gain in corporate bookings between March 2021, when sales were 80 percent lower than June 2019, and June 2021, when sales were 40 percent lower than a year earlier. On the same call, Delta Air Lines President Glen Hauenstein stated expectations that domestic corporate sales volume will reach 55 percent to 60 percent of 2019 levels. Further support comes f rom a recent Delta Air Lines survey of its corporate accounts, which revealed that more than one-third (36 percent) of the carrier’s large corporate customers expect to fully return to pre-pandemic volume no later than 2022. Another 21 percent of those accounts expect to fully restore their travel programs by 2023. “I think the surge is coming. Just like on the leisure side, we are getting ready for it on the business side,” Bastian said.

The State of Corporate Travel and Expense 2022 9 SKIFT + TRIPACTIONS As companies focus on strategies for getting their employees back on the road, they are also figuring out how to deal with a changing workplace, as the hybridization of the workforce seems here to stay. In a survey of 100 C-Suite executives across a range of organizations and industries in the U.S., Europe, Asia, and Latin America with annual revenues averaging f rom $5.1 billion to $11 billion, McKinsey found that 90 percent of them are focused on permanently combining remote and on-site working . How this hybrid workplace functions is a work in progress. McKinsey found that nearly three-quarters (68 percent) of the respondents have yet to institute a plan for hybrid work, while only 11 percent have a detailed vision in place. One effect of this shift to remote, however, is already apparent: a change in the patterns and modes of how employees stay connected with their organizations and conduct business. Examples include a rise in the number of offsites and retreats, and extended team gatherings at corporate headquarters. A NEW APPROACH TO EMPLOYEE SAFETY AND WELLBEING Alongside reconstructing workplace environments, organizations must pay heightened attention to the safety and wellbeing of their employees as business travel resumes. Taking a trip in 2021 involves many of the same issues that have existed since long before the pandemic. But Covid-19 and its variants have added a new layer of complexity to duty of care considerations for many organizations. While liberating on many f ronts, the increasing f reedom to travel for business must now co-exist with increased safety obligations and risk mitigation

The State of Corporate Travel and Expense 2022 10 SKIFT + TRIPACTIONS strategies. The return to travel must also include easily accessible and dynamic communication and information f rom employers and travel companies about evolving procedures and policies. From reduced flight schedules, cancellations, and seat shortages to the possibility of exposure f rom a co-passenger or the potential for travel into unvaccinated zones, corporate travel today still comes with a level of uncertainty. Accordingly, it’s imperative for companies to have real-time insight into every phase of the traveler experience, paired with the ability to communicate timely travel information at every stage of the trip. The right trip support tools and technologies are vital for ensuring a safe and lasting return to business travel and in-person events. “When the pandemic hit, TripActions was the first company to deploy a strong Covid-19 dashboard to assist our travelers and our travel managers with identifying at-risk destinations,” said Govern. “Moving fast, we paved the way for speedily getting travelers who were in trouble back home.” Govern emphasized that this level of support could not be done manually or by phone. “From a duty of care perspective, getting people to and f rom where they need to be requires a combination of service and technology,” she said. “That was confirmed by our customer feedback.” As travel rules rapidly evolve, it’s more imperative than ever that companies streamline communication and align around processes and goals. HOW WILL VARIANTS IMPACT THE COMEBACK? The success of rapid vaccination rollouts in North America and Europe has already paved the way for measurable recovery in corporate and other travel. But the rise of the Delta variant of the Covid-19 virus introduced additional uncertainty into business travel recovery timelines. Even if industry leaders agree that some caution is warranted, many also believe that the risks this time around are likely to be more predictable and manageable. Hilton is among a number of key travel industry leaders already looking beyond the Delta variant. As reported by Skift in summer 2021, the global hotelier had its first profitable quarter since the onset of Covid-19 ($128 million in the second quarter) and is not factoring a Delta-related impact or unease into its growth projections. “We know there are risks out there. We’re not oblivious to that,” Hilton CEO Christopher Nassetta said. “We think those are all reasonably manageable.” Nassetta is further sold on the idea that “there is pent-up business travel demand waiting to spring forward this fall” and “sees business transient travel returning before group travel.” His optimism is backed by the numbers; Hilton’s latest system-wide occupancy in the U.S. was 74 percent, showing that some business travel is already back. Other global hospitality brands, such as Marriott, Accor, and Wyndham, are also returning to profitability. “There are the media-driven doomsday scenarios, and then there is the data,” said Govern. “Looking at the large spikes in Delta cases in hotbed markets like the U.K. and India, our analysis points to a short- term disruption that will be nowhere near as severe as 2020 or even early 2021. Putting that into the U.S. context, TripActions expects to see a crash in Delta variant-driven cases by early fall that will put business travel back on trajectory for a good recovery.” “In the meantime,” she added, “the fast-evolving restrictions due to the Delta strain will require agility in corporate travel and spend programs.”

The State of Corporate Travel and Expense 2022 11 SKIFT + TRIPACTIONS Creative, flexible solutions will certainly define spend management in the near-term. But how these adaptive strategies will endure over time remains to be seen, once the workplace and business travel assumptively return to pre-pandemic norms. Based on business travel spending forecasts, it will be interesting to see how the tension between remote work and hitting the road, rails, and f riendly skies plays out. According to the GBTA, spending is poised to regain its pre-pandemic muscles . In its latest exhaustive analysis of business travel, the GBTA projects a 21 percent increase in business travel spending by the end of 2021, as vaccinations increase globally and consumer confidence returns. Looking ahead, the GBTA expects annual business travel spending growth “to remain well above historical average rates of growth of 4.6 percent” and come close to the 2019 pre-pandemic revenue peak of $1.43 trillion by 2024. How each of these forecasts evolve remains a matter of considerable debate among governments and corporations alike. In fact, at the time of this report’s publication, the ultimate long-term trajectory of the Delta variant continues to be in flux. Some industry observers believe the current wave of infections may be cresting , which could ultimately result in a more rapid return of business travel and spending than previously estimated. But some signals suggest a return; it’s just a matter of predicting when that may happen.

The State of Corporate Travel and Expense 2022 12 SKIFT + TRIPACTIONS THE SKIFT AND TRIPACTIONS STATE OF CORPORATE TRAVEL AND EXPENSE SURVEY In 2020, the global business travel sector experienced a unique level of disruption f rom the effects of Covid-19. Travel managers, as well as corporate travel and spend decision makers (CTDMs), rose to this historic challenge by making adjustments that kept the damage in check and their options open in readiness for rebound and recovery. Now, as the impact recedes, the time for rethinking policies and processes is here; the promise of a new era of safe, efficient, productive, and profitable business travel lies on the horizon. But what will the contours of this new era look like? What are the most pressing issues on the minds of business travelers and industry leaders? Skift and TripActions took this inflection point in the twilight phase of the pandemic to publish their annual survey investigating the forces shaping corporate T&E in the year ahead. Following a similar methodology as previous iterations of the report, Skift reached out to more than 1,600 people to get their read on the remaining challenges and f resh opportunities ahead. Those

The State of Corporate Travel and Expense 2022 13 SKIFT + TRIPACTIONS surveyed included business travelers, corporate travel and spend program managers, and corporate T&E leaders across 19 different industries worldwide — including six branches of the travel sector — working for organizations of varying sizes and revenues. This year’s survey data is a reflection of the issues and topics shaping the business travel and spend recovery. This year’s report starts with an outlook on the factors that will drive business travel forward in the short- term and beyond. This includes new dynamics and formats for meetings and events (as key components of business travel), and the move to more virtual and hybrid solutions. Another important topic is the hybridization of the workplace and workforce. How is remote work already impacting corporate travel? And what new areas of opportunity have been created by this increasingly dominant mode of working? Meanwhile, Covid-19 put duty of care obligations and responsibilities in an acute new spotlight. What policies do travel managers need to have in place to support employees in the post-pandemic environment? The pandemic also brought sharp focus to the service component of business travel providers. What do corporate travel agencies and other travel platforms need to do to stay fleet-footed ahead of Covid-19 and future challenges? The rapid changes brought on by remote work is also impacting payments and company expense management. How can organizations solve for misalignments in new line items like remote work expenses and broader employee benefits? In the sections that follow, Skift and TripActions analyze the results f rom this year’s survey, including insight into what could potentially be the genesis of dynamic new dimensions in travel planning and spend management.

The State of Corporate Travel and Expense 2022 14 SKIFT + TRIPACTIONS BUSINESS TRAVEL GEARS BACK UP There’s no question that demand is picking up after a long hiatus. But with new concerns around the Covid-19 variants, along with larger shifts underway in workplace culture, there may be some ups and downs moving ahead. Still, the corporate world’s commitment to business travel remains undiminished. Roger Dow, president and CEO of the Washington, D.C.-based U.S. Travel Association, has been a prominent champion for the safe return of business travel throughout the pandemic. “Business travel was such a powerful section of our travel and U.S. economy and a major driver of our total economy,” stated Dow in a June 2021 release. “It contributed $791 billion to the economy in 2019 and was responsible for 5 million jobs. We need to look at how we can get it going faster. Domestic leisure travel is really doing well, but it’s the business travel, group and meetings, and events that are so important.” “A thriving travel industry — and the broader U.S. economy — are dependent on the return of business travel and PMEs (in-person professional meetings and events),” noted Dow. “Americans are eager to reconnect with colleagues in person, via business meetings, conferences and conventions.”

The State of Corporate Travel and Expense 2022 15 SKIFT + TRIPACTIONS Affirming that sentiment, the GBTA “forecasts further acceleration in business travel, including a significant pickup in group meeting activity and international business travel” for 2022 and beyond. As this year’s survey results reveal, business travel remains an essential activity for a majority of the world’s workforce, whose appetite for travel is undiminished by Covid-19. Nearly three-quarters (72 percent) of respondents predict that they will take up to 10 work-related trips over the next 12 months, with another 19 percent aiming for 11 to 20-plus trips. On average, 63 percent of business travelers identif ied attending conferences and events, “essential” client travel, and either fostering existing or creating new business relationships as “very or somewhat important” reasons for business travel this year and next. How many trips do you predict you’ll take for work over the next 12 months? What are the primary reasons you’ll travel for work in 2021 and 2022? Business Travelers Business Travelers 0 1-2 3-5 6-10 11-15 16-20 20+ VERY UNIMPORTANT REASON SOMEWHAT UNIMPORTANT REASON NEITHER IMPORTANT OR UNIMPORTANT REASON SOMEWHAT IMPORTANT REASON VERY IMPORTANT REASON Attend conferences / events 9% 10% 17% 29% 35% Essential client-related travel 11% 10% 19% 26% 34% Foster established business relationships 8% 7% 21% 32% 32% Establish new business relationships 11% 8% 17% 33% 32% Close a deal 21% 7% 21% 27% 25% Gather my team in one place 13% 14% 27% 23% 23% Meet with co-workers in other offices 13% 12% 23% 32% 21% 26% 10% 25% 21% 4% 9% 6%

The State of Corporate Travel and Expense 2022 16 SKIFT + TRIPACTIONS The “cabin fever effect” for road warriors cooped up in their homes on endless video conferences is certainly a driver. And, per McKinsey, the “ fear of missing out ” (FOMO) is a major factor for returning travelers. “The bulk of business travel (60 percent of business- travel expenditure in 2019) — which will likely drive the rebound of corporate travel — will be fueled by the FOMO segment: those traveling to cultivate important client relationships,” stated McKinsey in a July 2021 report on the comeback of corporate travel. While aligned with business travelers on establishing new business relationships (63 percent) and “essential client related travel” (61 percent) as travel priorities, policy makers are measurably more focused on closing deals (61 percent) than business travelers (52 percent). This likely reflects a corporate focus on the bottom line: Decision makers want sales, revenue, and cash flow. Workers, though still focused on getting back to business, also desire some work- life balance and a return to the fun and adrenaline of being on the road. What are the primary reasons your employees will travel for work in 2021 and 2022? Corporate Travel Decision Makers Corporate Travel Decision Makers VERY UNIMPORTANT REASON SOMEWHAT UNIMPORTANT REASON NEITHER IMPORTANT OR UNIMPORTANT REASON SOMEWHAT IMPORTANT REASON VERY IMPORTANT REASON Close a deal 11% 10% 19% 31% 30% Establish new business relationships 9% 9% 19% 32% 31% Foster established business relationships 9% 10% 22% 32% 27% Gather my team in one place 12% 12% 26% 29% 20% Meet with co-workers in other offices 13% 15% 24% 28% 19% Attend conferences / events 9% 10% 21% 31% 29% Essential client-related travel 9% 10% 20% 31% 30% In terms of travel policy, short-term changes were the norm during Covid-19, of course. But the shift back to historic policies or approaches seems likely as conditions improve. The finding that 22 percent of CTDMs said their organization only made temporary changes to their travel policy, with another 45 percent making no change at all, points to a good chance for a strong rebound. Because of the pandemic, my company is making changes to its travel policy that will be: Temporary Permanent N/A - My company has not changed its travel policy 33% 45% 22%

The State of Corporate Travel and Expense 2022 17 SKIFT + TRIPACTIONS THE INTEGRATION OF PAYMENTS AND SPEND MANAGEMENT For many companies, one of 2020’s key learnings was that business travel did not exist in a vacuum. Decisions about business travel spend were closely intertwined with larger questions about overall company financial strategies and a need to gain better visibility into employee spending habits. Now, as travel rules rapidly evolve, it’s more important than ever that companies streamline communication and align around processes and goals. This is especially true when it comes to trip payments, evolving employee benef its, remote work needs, and company spend management practices — topics that are gaining increasing prominence among company decision makers looking to evolve their approach. First, after a year of budget cuts and spending pullbacks, companies are thinking differently about how business travel fits into overall financial goals. From changing company perceptions of the use of corporate versus personal credit cards for work trips to new allowable expenses and spending strategies, there is a growing embrace of new expense management strategies and tools.

The State of Corporate Travel and Expense 2022 18 SKIFT + TRIPACTIONS “Covid-19 and the shift to remote have significantly broadened def initions and policies for work expenses,” said Govern. “As travel spend on cards has decreased as expected, we have seen an uptick in meals, gym memberships, software, and even cleaning supplies as at-home expenses enter the spend management equation. In fact, non- travel receipts now account for nearly 50 percent of overall spend on our T&E platform, TripActions Liquid TM . When we launched TripActions Liquid, we weren’t necessarily thinking about endless expense possibilities, but in the pandemic, it’s morphed into something much bigger.” For f inancial leaders and executives looking to evolve their spending approach, this post-pandemic shift presents an opportunity to unify all company- related expenses into one easy-to-manage system. This is echoed in the responses f rom this year’s survey, with 64 percent of CTDMs indicating they would be interested in a solution that provides more unification between travel and internal company spending. The advantages of a unified platform are clear — from greater transparency and ease of communication to more streamlined and eff icient business travel planning and management. These unified platforms also provide f inancial leaders with much-needed context, helping to better understand what expenses they may be able to automate versus those that require closer scrutiny. “The foundation of unif ied inf rastructure is fluid interaction between contextual travel and spend data,” explained Govern. “Absent travel context, it’s impossible to automate a spend policy that helps save the company money. Lacking spend context, it’s impossible to instantaneously recognize when a traveler is straying out of policy.” On the back end, a unif ied platform ultimately reduces complexity for program managers. “Instead of separating travel inventory and support (TMC) and booking technology (OBT) — legacy platforms that constantly blame each other for technology gaps — a unified system makes it easier to hold one group accountable,” continued Govern. “In short, you should obviously be able to book, manage, and support travel all in one place online. Expanding that, spend management is the natural other side of the scale.” Once you have the yin and yang in place, it’s possible to add all of the trappings of a boutique operation directly into the platform. “Powerful reporting, traveler incentives, gamification, and other technologies can be built directly into the system all under the same umbrella,” Govern said. “This way, end users don’t need to go to a third-party app store, sign 300 contracts, deploy extra mobile apps, and glue technology into their program.” Count Zennify, a fast-growing technology consulting firm with offices in California and Idaho, among the satisfied customers. “Even before our recent growth as a company, we had been looking for enhanced T&E management tools,” said Zennify co-founder and director of IT Jesse Barker. “The Agree or disagree: “Our company would be in- terested in a travel solution that provides a more unified travel and spend platform, rather than separate solutions.” Strongly agree Somewhat agree Neither agree or disagree Somewhat disagree Strongly disagree Corporate Travel Decision Makers 26% 27% 37% 7% 3%

The State of Corporate Travel and Expense 2022 19 SKIFT + TRIPACTIONS travel shutdown afforded us the time to focus on finding a new solutions partner, with an emphasis on the end user experience. Ease of use was critical, from booking travel and making flight changes to helping our people with any situation at any phase of their trip. That’s how we ended up transitioning to TripActions. From the traveler perspective, their intuitive two-way app is second to none.” Illinois-based metal parts manufacturer and vendor Bystronic is another company that recently integrated TripActions Liquid as part of its spend management solution set. “We experienced some instances of abuse with another company’s corporate cards,” said Brody Fanning, Vice President of Sales for the Americas Market Region. “That motivated our accounting team to investigate TripActions Liquid, which has done a great job of reducing our exposure and shutting down loopholes that other people were able to exploit. TripActions Liquid has also helped us to control costs, including providing greater visibility into when people overspend.” The result is a seamless, powerful system for the post- pandemic context that allows companies to better manage employee business trip spending, helps set more automated approval processes, and cut unnecessary costs. “The end-to-end solution of combining and automating the travel and expense pieces saves time and money, which is why we are seeing so much growth in our TripActions Liquid offering,” said Govern. “People are really embracing the change. Instead of trolling through paper receipts, you take a picture of the receipt in f ront of you and it’s automatically submitted. It’s one and done in real time.” And TripActions Liquid is producing real-time benefits for Zennify, as Barker explains. “While we are still coming to terms with what a holistic view means to us f rom an operational perspective, we have embraced how TripActions Liquid allows us to set our own policies and eliminate human intervention for each individual transaction,” said Barker. “The ability to trust our policies and people without having to ask people about expenses all the time is a major new eff iciency. With our recent growth, managing expense reporting and reconciliation was not scalable. TripActions solved that challenge by integrating TripActions Liquid with our QuickBooks accounting software, and it works amazingly well.” Another area of opportunity related to spend management is assisting with a broader range of company payment solutions. As companies try to gain a better handle on rapidly evolving employee spending habits, more are exploring opportunities to provide company-issued payment solutions. By using these payment products instead of employees’ personal cards, organizations can more easily track and reconcile spending patterns, providing greater insight and control to financial decision makers. But has the industry caught up with this strategy? In the 2020 survey, travelers and CTDMs agreed that a mix of company credit cards and personal cards was the most common payment method for business trips. That alignment has since appeared to shift. More (56 percent) CTDMs now report that their employees pay for travel expenses with a company card, while business travelers are more split (48 percent) between using personal cards and company cards. The larger trend line here suggests that adoption of company-provided payment solutions is increasing, thanks to a growing preference for the arrangement among business travelers. In this year’s survey, 71 percent of business travelers preferred to use a company card over their personal card, reinforcing employee interest. CTDM sentiment is much the same; 69 percent of respondents would like employees to pay for their trips with company cards (next page, left).

The State of Corporate Travel and Expense 2022 20 SKIFT + TRIPACTIONS Agree or disagree: “I would prefer to pay for work travel expenses with a company credit card.” Agree or disagree: “We would prefer our employ - ees pay for work travel expenses with a company credit card.” Strongly agree Somewhat agree Neither agree or disagree Somewhat disagree Strongly disagree Strongly agree Somewhat agree Neither agree or disagree Somewhat disagree Strongly disagree Business Travelers Corporate Travel Decision Makers Barker, for one, is on board with this solution. “TripActions has also expedited the spend management process by offering on-demand virtual credit cards for business expenses,” he said. “Say an employee is traveling to a conference. We set the amount for the given airfare and other expenses, send them the card, and off they go. It’s instantly trackable at the employee level. I regularly use this solution to purchase equipment. It’s a major improvement over issuing and managing traditional corporate cards. The process is easy and straightforward, with little paperwork to provide. TripActions really thought this solution through.” Additional advantages include tie-ins to existing loyalty reward programs and purchasing incentives. “Our employees can link their airline, hotel, and other reward programs to the virtual card and earn credit,” said Barker. “Another reason we went with TripActions Liquid is getting one percent back on all of our spend, with no limit. Whether we spend five dollars or a million dollars, it’s one percent back. That’s a big driver for us.” Barker also commends TripActions for f iguring out how to incentivize travelers to make smarter purchasing decisions. “By offering Amazon gift cards as a reward, we can push our users to book certain flights or hotels and not overspend,” he said. “TripActions is not helping us def ine spend management policy, but shape spending behavior that we like.” 16% 22% 50% 34% 21% 35% 8% 6% 5% 3%

The State of Corporate Travel and Expense 2022 21 SKIFT + TRIPACTIONS THE RISE OF REMOTE WORK AND TEAM TRAVEL Another area of growing interest for companies and business travelers is how much impact remote work will have on company culture and business travel demand. Noting that the pandemic has, for the first time, “elevated the importance of the physical dimension of work,” McKinsey, in its February 2021 “The future of work after COVID-19” report, finds that “jobs in work arenas with higher levels of proximity are likely to see greater transformation after the pandemic , triggering knock-on effects in other work arenas as business models shift in response.” One clear sign of the departure f rom the off ice- centric model is the wave of remote job listings and company rankings of remote-friendly firms. Forbes, for example, now ranks “The Top 100 Companies For Remote Jobs In 2021.” Leading recruiter Indeed has also compiled a list of “Top 100 Remote Work Companies.” Meanwhile, LinkedIn saw a 5x increase in remote work job listings during the pandemic. Despite all this, companies are adopting the remote or hybrid model to varying degrees by industry, which makes a sweeping depopulation of the traditional workplace unlikely. This year’s survey found, for example, that only 15 percent of business travelers and 23 percent

The State of Corporate Travel and Expense 2022 22 SKIFT + TRIPACTIONS of CTDMs expect their off ices to go fully remote after the pandemic. The majority, 66 percent and 63 percent, respectively, anticipate returning to the office at least some of the time. How does your company plan to handle remote work after the pandemic? Fully remote (no company office) Partially remote (some days in the office, some at home) Office only (full workweek in the office) Fully remote (no company office) Partially remote (some days in the office, some at home) Office only (full workweek in the office) Business Travelers Corporate Travel Decision Makers The pandemic has similarly triggered a wave of breathless speculation and outright declarations f rom industry pundits, technology providers, and the media on how remote work will interrupt and forever transform meetings and corporate travel. But all the absolute talk about “the new normal” does not align with what those in the industry are experiencing. For example, a research-backed report f rom Dallas- based global event producer Freeman finds strong interest and “ an accelerated return ” to in-person events. The study found that most (85 percent) of the respondents called live events “irreplaceable because of their ability to drive commerce and networking that creates partnerships and innovation.” Additionally, 78 percent of attendees and 80 percent of exhibitors expect to attend in-person events in fall 2021; by winter, those numbers rise to 94 percent and 95 percent, respectively. The Freeman feedback conforms with Skift’s and TripActions’ f indings that most respondents still recognize the advantages of meeting in person over the phone or video screen. Well-versed in the value of face-to-face engagement, 73 percent of business travelers strongly or somewhat agreed that meeting in person is more effective than meeting virtually. Agree or disagree: “When it comes to getting things done, meeting in person is more effective than meeting virtually.” Strongly agree Somewhat agree Neither agree or disagree Somewhat disagree Strongly disagree Business Travelers Looking ahead, business travelers (61 percent) and program managers (62 percent) equally believe that remote work may impact both the f requency (61 and 62 percent, respectively) and the purpose (both at 58 percent) of business trips. 19% 14% 15% 23% 66% 66% 18% 35% 38% 2% 7%

The State of Corporate Travel and Expense 2022 23 SKIFT + TRIPACTIONS Agree or Disagree: “Remote work will change the frequency of my business trips moving forward.” Agree or Disagree: “I am excited by the idea of regular company offsites to connect with my co-workers.” Business Travelers Business Travelers Corporate Travel Decision Makers Corporate Travel Decision Makers Strongly agree Somewhat agree Neither agree or disagree Somewhat disagree Strongly disagree Strongly agree Somewhat agree Neither agree or disagree Somewhat disagree Strongly disagree N/A - No one in my company works remotely Strongly agree Somewhat agree Neither agree or disagree Somewhat disagree Strongly disagree N/A - No one in my company works remotely Strongly agree Somewhat agree Neither agree or disagree Somewhat disagree Strongly disagree But even as more employees go remote, Govern believes that travel f requency will actually increase. “We are already seeing that there are going to be many more meetings, events, and team bookings,” she said. “People are already organizing offsites as well as extended trips to their corporate headquarters in an effort to strengthen company culture. Whereas the latter were traditionally shorter visits, we are now seeing that people want to spend a full week at the office with their teammates.” The survey data supports this trend. A full 63 percent of employees and 60 percent of CTDMs strongly or somewhat agree they’re excited by the idea of regular company offsites or get-togethers. These new business travel habits bode well for future business travel demand. Around one-quarter of CTDMs are even prepared to fund company retreats or offsites, along with virtual or in-person social activities such as employee happy hours. The assumed greater prevalence of remote 25% 22% 24% 26% 25% 24% 23% 23% 38% 38% 40% 38% 2% 6% 5% 3% 3% 3% 8% 10% 8% 7%

The State of Corporate Travel and Expense 2022 24 SKIFT + TRIPACTIONS 25% work will also have an impact on financial decisions in new areas such as capital outlays required to support remote staff. Nearly one-third of CTDMs plan to offer dedicated co-working spaces and a stipend for office supplies, while 25 percent would even offer a stipend for personal vacations. That remote work is going to change business travel is a foregone conclusion at this point. As the survey data shows, however, the apocalyptic predictions are mythic. Rather, remote work will open up new opportunities for collaboration and work trips as business travel returns. Assuming employees are able to work remotely at least some of the time after the pandemic, which of the following travel perks (if any) do you plan to offer to employees? Corporate Travel Decision Makers Flexible working hours Dedicated co-working space Stipend for home office supplies Virtual/in-person social activities with co-workers Stipend for personal vacations Company retreats/offsites Virtual/in-person co-worker happy hours None of the above Other 31% 45% 31% 1% 29% 25% 25% 22% 11%

The State of Corporate Travel and Expense 2022 25 SKIFT + TRIPACTIONS HIGHER LEVELS OF CARE AND SUPPORT As workers return to business travel in greater numbers, many also are facing new challenges and concerns. They will need reassurance, new policies and procedures, better information, and strong support. How travel managers choose to match the moment by supporting employees will have important ramifications as to how quickly business travel is able to recover heading into 2022. Important areas of focus include communicating real-time information, instituting and evolving policies, and developing protocols and procedures for safety and hygiene. What do business travelers say they need to safely and reliably travel in 2021 and 2022? And do industry decision makers plan to support those needs? In Skift’s 2020 business travel survey, all respondents were understandably most concerned about minimizing the risk of contracting Covid-19 or other diseases when traveling for work. Their other major preoccupation, consistent with findings in past years, was with flight delays and cancellations. This year, minimizing the risk of Covid-19 (37 percent) while in transit was second only to flight delays (52 percent) as the most pressing concern of business travelers.

The State of Corporate Travel and Expense 2022 26 SKIFT + TRIPACTIONS The shift back to flight delays as a chief concern likely reflects, in part, a growing traveler comfort and confidence with masking and vaccination protocols. It stands to reason that the acceleration of safety and hygiene protocols and uptake of vaccinations has travelers in a more conf ident mindset. Technologies setting travelers at ease include corporate travel platforms like TripActions, which provide organizations and employees with real- time information about the trip experience. Other solutions include Health Pass, the mobile app f rom biometric ID leader CLEAR, which includes touchless, f rictionless vaccination validation, lab results, and real-time health screenings. Interestingly, the divide between airlines that now require their employees to get vaccinated and those that don’t may not overly influence the decision to travel. Quoted in an August 2021 Los Angeles Times piece on the topic, Madhu Unnikrishnan, editor of Skift Airline Weekly, stated that airline employee vaccination mandates “won’t rise to the awareness” of most passengers. Rather, Unnikrishnan asserted that “the majority of passengers will continue to book based on price and schedule.” Of course, there is no taking away the headache of the recent upswing in flight delays and cancellations due to staff ing shortages. Plus, given the global scope of the survey, regional differences must be taken into consideration. The other compelling explanation for shifting travel concerns is the growing desire to resume business travel, as well as an increased familiarity with the experience, on both the company and client sides. Take Zennify, for example. The company doubled in size in 2020, adding 115 new employees. “Most of us, myself and around 200 of my colleagues, actively travel for business,” said Barker. “While hindering deal closures and other efficiencies, the shutdown did not slow us down. Now, given the What are the most common problems you face when traveling for work? Business Travelers Flight delays Minimizing my risk of infection f rom Covid-19 or other diseases Flight cancellations Having to pay for travel expenses on a personal credit card Missed connections Lack of support for fixing problems while traveling Early check-in not available Issues with hotel reservations Oversold flights Late check-out not available Other 31% 52% 37% 29% 24% 24% 17% 16% 15% 15% 3%

The State of Corporate Travel and Expense 2022 27 SKIFT + TRIPACTIONS opportunity to travel again as restrictions lift and comfort levels increase, we are encouraging our people, 60 percent of whom are currently remote, to travel. From the collaboration and camaraderie aspects to relationship-building and completing the deal cycle, travel is very important to them and to our clients.” As the challenges imposed by Covid-19 and its variants remain fluid and top of mind for the foreseeable future, another clear message is that travelers will need a dependable partner that can provide highly responsive support for all challenges, Covid-related or otherwise. In a June 2021 opinion piece for Security Magazine, Dan Richards, CEO of Global Rescue, a global leader in travel risk and crisis management services, stated that “hope is not a strategy” when it comes to duty of care and trip support. “Employers must be able to demonstrate they took a best practices approach for their business and their people,” wrote Richards, who also serves on the U.S. Travel and Tourism Advisory Board at the U.S. Department of Commerce and is a Global Member of the World Travel and Tourism Council. “They cannot send their employees on the road and simply hope nothing bad happens.” Continuing, Richards stated, “Safeguarding your people is a big obligation. Business leaders are not experts in disease prevention and transmission, but they are now forced to make decisions during very difficult times. It’s been more than a century since we’ve had a pandemic of this scale. That’s why it’s imperative for business leaders to recognize the need for expert guidance and to work closely with specialists to plan and implement the necessary risk mitigation strategies for employee safety.” As the 2021 survey reveals, some travel managers have yet to get the proverbial memo. Only 35 percent of responding CTDMs cited the risk of Covid-19 as a problem, which points to a clear disconnect with travelers (above, right). What are the most common problems your em- ployees face when traveling for work? Corporate Travel Decision Makers This could owe to a lack of personal familiarity with, or misperception of, the realities of the in-trip experience. The more likely explanation is a gap in facilitated dialogue between travelers and program managers. The opportunity is to institute a feedback loop that helps CTDMs develop an in-depth, end-to- end understanding of the travel experience. Lack of communication may also be the culprit in the survey’s reveal of a disconnect over whether organizations did enough to keep employees safe during the pandemic. While 74 percent of CTDMs thought for the most part that their companies performed well in this regard, 66 percent of employees were less sure (next page, left). Flight delays Minimizing my risk of infection f rom Covid-19 or other diseases Flight cancellations Having to pay for travel expenses on a personal credit card Missed connections Lack of support for fixing problems while traveling Early check-in not available Issues with hotel reservations Oversold flights Late check-out not available Other 31% 35% 40% 30% 28% 23% 17% 16% 16% 15% 2%

The State of Corporate Travel and Expense 2022 28 SKIFT + TRIPACTIONS Travel can be challenging. The lack of essential information, understanding, and policy only compounds the stress. Wherever possible, organizations should be focused on anticipating and avoiding issues and hurdles in the travel experience. Accordingly, organizations with gaps to bridge need to find partners that can introduce intelligent, dynamic policies to help travelers stay agile in the still-fluid Covid-19 environment. The survey reveals, however, that not many organizations are thinking this way yet. Only 24 percent of respondents strongly agreed that their company now has the tools and partners to create a more nuanced and dynamic travel policy going forward. This suggests that more companies than not may be on the fence or unsure about how to evolve the functional and structural components of trip support during the pandemic and beyond. Agree or Disagree: “Our company has done a good job keeping employees safe during business trips during the pandemic.” Agree or Disagree: “My company has the tools/ partners to create a more nuanced and dynamic travel policy than we had pre-pandemic.” Agree or Disagree: “Our company has done a good job keeping employees safe during business trips during the pandemic.” Business Travelers Corporate Travel Decision Makers Corporate Travel Decision Makers Strongly agree Somewhat agree Neither agree or disagree Somewhat disagree Strongly disagree Strongly agree Somewhat agree Neither agree or disagree Somewhat disagree Strongly disagree Strongly agree Somewhat agree Neither agree or disagree Somewhat disagree Strongly disagree N/A - No one in my company works remotely 20% 28% 37% 35% 24% 37% 30% 38% 2% 1% 3% 5% 5% 7% 13% 15%

The State of Corporate Travel and Expense 2022 29 SKIFT + TRIPACTIONS The more encouraging news is that organizations are getting the picture on what most needs to change, such as ready access to real-time information. British Airways, for one, has partnered with global tech company Sherpa to create an online interactive heat map showing entry requirements for every destination the carrier serves. And according to survey f indings, both business travelers and program managers are prioritizing travel- related and policy information as travel resumes. “The pandemic exposed many of the disconnects between data sources and the travelers that need them the most,” said Govern. “The world is so fluid right now. Restrictions come and go at the drop of a hat. If anything is impacting changes in policies, it is the traveler’s need for detailed information right there in the moment.” Which of the following are your biggest concern(s) with returning to work trips after the pandemic? Which of the following are your biggest concern(s) with employees returning to work trips after the pandemic? Business Travelers Corporate Travel Decision Makers Getting timely information about changes in travel procedures Understanding the entry requirements of the place I’m visiting Staying healthy while traveling Understanding changes to my company’s travel policy and expensing Getting f requent updates about new company travel policies Other Delivering good information about changes in travel procedures Making sure employees stay safe/ healthy while traveling Explaining changes to our company’s travel policy and expensing Communicating the destination requirements of the places employees are visiting Delivering f requent updates about our new travel policies Knowing where employees are so we can help if there’s a problem Other 79% 71% 65% 53% 58% 49% 49% 48% 48% 46% 5% 31% 2%

The State of Corporate Travel and Expense 2022 30 SKIFT + TRIPACTIONS THE GROWING NEED FOR ALL-IN-ONE TRAVEL PLATFORMS Emerging f rom the pandemic, there is a growing shift for corporate travel agencies and other travel platforms to improve and enhance their services, as companies and their traveling employees require more information and support. Looking ahead, the combination of service excellence with service innovation will be true differentiators in the business travel market. This was the impetus behind TripActions’ acquisition this summer of U.K.-based Reed & Mackay, a global leader in service-oriented travel management. “As we stand ready to support a safe, confident, and much anticipated return to travel, we believe that both VIP service and best-in-class user experience are fundamental requirements of a successful travel programme,” stated Reed & Mackay CEO Fred Stratford of the synergistic union. “By combining two

The State of Corporate Travel and Expense 2022 31 SKIFT + TRIPACTIONS strong businesses, both leaders in service innovation, we will offer a new type of travel solution, one that meets the needs of every business, everywhere.” Take, for example, solving for the shift to higher f requency meetings, offsites, and retreats. Presently, as the survey indicates, companies are inefficiently relying on a patchwork of disconnected legacy solutions. Travel platforms have a prime opportunity to fix this mishmash approach with simpler, more seamless solutions. Team Travel, a new cloud-based product introduced by TripActions this summer, helps smaller groups seamlessly book flights and hotels for teams departing f rom different destinations. “This represents a major process improvement and cost-saving driver in the corporate travel world,” explained Govern. Improving transparency and two-way communication, especially where health and safety are concerned, is one new imperative. Responsive solutions include post-trip traveler surveys to allow managers to collect information directly from travelers to analyze flight and hotel experiences. This year’s report tries to understand the biggest pain points with current solutions, and what the new standards of support and service need to be for the future. Remarkably, amid the continuing pandemic-related challenges, many companies are trying to go it alone. When asked about their corporate travel solution, the most popular answer among CTDMs was that their company was “unmanaged.” More revealing still, 22 percent said they have no formal program at all. These are problematic situations, because going the unmanaged route sticks business travelers in the same clogged customer service channels used by consumers. Best-in-class support for business travel, especially during a pandemic, requires a more high- touch, service-oriented approach. As for the technology, user-f riendliness remains the name of the game for corporate travel platforms. Not only does an easily navigable tool improve the in-travel experience, it also encourages platform adoption — especially during a time of more acute travel disruption. This year’s report affirms that ease of use, combined with strong support services, wins the most hearts, with TripActions again resonating highly with business travelers and program managers. Travelers rated TripActions ahead of other solutions for considerations including “easy to use” (81 percent versus 68 percent); “supports me well on a trip” (63 percent versus 57 percent); “makes it easy to change/ cancel plans” (72 percent versus 61 percent); and “quick response times” (81 percent versus 57 percent). CTDMs also gave TripActions the edge over other solutions for the same four uses, albeit by smaller margins. Does your company use any of the following to assist with group travel plans? Business Travelers Third-party online tool Company staff member In-house online tool N/A - we do not have any plans for group travel Offline dedicated service 28% 25% 21% 19% 7%

The State of Corporate Travel and Expense 2022 32 SKIFT + TRIPACTIONS INTERVIEW: HOW EVENTS ARE SUPPORTING BUSINESS TRAVEL RECOVERY According to Oxford Economics research commissioned by the Events Industry Council, global business events generated $2.53 trillion in total business sales before the pandemic hit. Counting some 1.5 billion participants in 180 countries, the worldwide MICE market was projected to go even higher in the years ahead. Powering corporate travel in a big way, business events represent a reliable barometer of post-

The State of Corporate Travel and Expense 2022 33 SKIFT + TRIPACTIONS pandemic travel recovery. And not only are meetings, conventions, and events coming back as strong as ever, but they are helping to establish the efficacy of mask and vaccine protocols in creating safe, low-risk environments. Citing findings from a research partnership between global events leader Freeman and computational modeling software company Epistemix, Trade Show News Network reported in August 2021 that “ large in- person business events are safe and do not increase local COVID-19 case rates .” Quoted in the story, Freeman CEO Bob Priest-Heck stated that, “Based on the data we’ve seen, attending an in-person event is no riskier — in fact, less risky than essential daily activities.” He added, “Businesses and organizations want to get back to events for critical commerce, networking and exchange of ideas. This research provides the f ramework for doing so safely.” Skift spoke with three meetings industry leaders in the bellwether Las Vegas market for their f rontline perspective on adapting to the pandemic challenge. Michael Massari, chief sales off icer for Caesar Entertainment, currently co-chairs the D.C.-based Meetings Means Business Coalition. Stephanie Glanzer is chief sales officer & senior vice president of sales for MGM Resorts International. Chandra Allison is senior vice president of sales for The Venetian Resort Las Vegas. Together, they manage a combined 8.4 million-plus square feet of group space supported by nearly 88,000 hotel rooms in Vegas alone. With yet more inventory in regional markets across the U.S. and abroad, the trio, in ordinary times, is responsible for thousands of annual meetings, conferences, conventions, and events worth hundreds of millions of dollars in revenues. From an uptick in creative ways to keep remote workers connected and engaged, to higher f requency strategic and collaborative events, there is clear evidence that meetings are propelling business travel in both traditional and unexpected ways. Skift: What is the current demand for meetings and events in Vegas, and how would you say that demand is a larger indicator of business travel recovery? Massari: Demand is off the charts. We recorded $600 million worth of contracts during the pandemic. That’s an all-time 12-month record for our company, and future bookings are better than ever. Those are related and signify an enhanced understanding of the value of meeting face-to-face. Take that away for a year and if people did not realize the importance before, they clearly do now. Glanzer: Since reopening, we have successfully hosted more than 1,500 groups and counting. Attendance has reached as high as 20,000 delegates. In early August, we hosted an event for nearly 7,000 people. While the Delta variant has caused some short-term decline, this trend continues into the fall and picks up dramatically in 2022 as we continue to see strong commitment and pacing through signed contracts. Along with the strong desire to reconnect in person, the uptick in demand also reflects growing comfort and confidence in resuming business travel. Allison: While adjusting slightly for impact f rom the Delta variant in the near term, our key performance indicators such as lead volume, site inspections, pre- planning, and business pace were all at or exceeding 2019 levels. As vaccination requirements and other factors rapidly change the environment, we remain encouraged by the high business demand. Skift: What factors are currently driving business travel? Glanzer: I think that there is an emotional component, a feeling. People are rediscovering, or realizing for the first time, true appreciation for getting back together in person. From a business standpoint, another element which we have heard

The State of Corporate Travel and Expense 2022 34 SKIFT + TRIPACTIONS continuously f rom exhibitors is the high quality of who they are meeting and conversing with at shows. With one group generating their highest revenue ever f rom a trade show, the value of delivering business content live is undeniable. We are hearing this f rom organizations that had anticipated staying digital or hybrid longer. The feedback f rom their sales and field teams? Doing business in person has the greater impact. Massari: Remember that United Airlines TV commercial where the CEO talks about the business they have lost by not seeing their customers in person as he hands out airline tickets to every member of his team? The reason for business travel is getting in f ront of prospects and clients. Because business is all about being productive, right? It’s about spending the least amount of time getting the most amount of benefit. I believe that communication improves as you move along an axis that goes f rom email to phone call to video conference to meeting in person. As the importance of the business discussion or objective increases, you want to be in the northwest quadrant, not the southeastern quadrant. Whether it’s about getting back in f ront of customers, launching a product, or closing deals, this is a major impetus behind the confident return to transient business travel and in-person meetings. Allison: After 17 months of video calls, the biggest demand driver for business travel we are hearing is the ability to network and develop relationships, followed closely by talking real business and closing deals. Connections between people are just stronger in person. Skift: How are you and your sales team getting back out there to meet customers and sell your venues and services? What are you hearing from the field? Allison: Many of our customers are still working remotely because of corporate travel bans or organizations yet to bring people back to the office. That has limited direct calls for our team of 35 salespeople in Vegas and in markets around the country. In the meantime, we are devoting our travels to site inspections, pre-planning, and attending trade shows and industry events. And we are seeing a huge uptick in site inspections coming into our property. Massari: Caesars Entertainment’s national team of 130 sales managers live in-market where our customers are, so we are in the car or on the train more often than in the f riendly skies. While we are not quite back to pre-pandemic levels, we are in f ront of customers way more often now than nine months ago. The team is motivated—as I always say, it’s easy to say no to an email or phone call, but much harder when somebody is sitting in f ront of you. It’s easy to say no to an email or phone call, but much harder when somebody is sitting in f ront of you. “ ” Glanzer: Our 100-plus-member team has been traveling regularly since this spring, seeing customers both in-market and in cities around the country. In addition to being highly visible at industry events and trade shows, we have ramped up creative ways to meet outside, such as using the outdoor patios at restaurants and other venues. We’ve had strong participation, which is a measure in part of people’s comfort level in traveling. Staying closely connected to our health and safety teams, I keep up-to-date with positivity rates and other critical information

The State of Corporate Travel and Expense 2022 35 SKIFT + TRIPACTIONS about wherever we travel. Prioritizing safety and following protocols are essential for getting back into the field — and moving beyond the pandemic. Skift: Speaking of remote work, how is that impacting the frequency of business travel and how people are convening? Massari: Honestly, I don’t think enough time has passed under this set of circumstances to know how it’s all going to turn out. Speculatively, I’d say that organizations that are staying more remote will need to gather their staff more f requently. In that scenario, you’re likely to spend more time than usual on activities such as communication, interaction, education, learning, and team building. That’s been our experience in going remote for so long, and it’s true for other organizations that we talk to. I think those conclusions are intuitive and reasonable, at least for the time being. As far as the permanence of remote goes, you may have heard JPMorgan CEO Jamie Dimon say that while working f rom home may fly for individual performers, “it doesn’t work for those who want to hustle, it doesn’t work for spontaneous idea generation.” If you are ambitious, you will want to be around the people that are decision makers about your future, because you’ll get to know people and communicate better when you are face-to-face. And if you are a part of a team, you need to be around that team. Glanzer: The pandemic has given people time to think about how they might reimagine events in the future. Many planners and groups have realized that hybrid, for one, is not something you just switch on. Involving a separate budget, planning team, and content, it’s like planning two events. Simply live- streaming events to people is not as easy as it seems. Looking ahead, I think that f rom the hotel, planner, and event perspectives, people will have to think through what digital engagement and experience means for conferees choosing to ‘participate’ at their desk. While individual mega-shows will take time to return, the good news trend we are seeing is two or three shows with equivalent attendance. It’s the same number of people meeting face-to-face, just in separate events versus one giant gathering. We are also seeing a high volume of small short-term meetings, f rom the senior leadership executive or regional sales team level to offsites for teams that have not met in 17 months. Allison: We are also seeing a rapid surge in smaller, shorter-term meetings across different industries for the same reasons. That’s especially true of our medical and pharmaceutical markets. Exceptional examples include hosting the HIMSS Global Health Conference & Exhibition in August, with some 18,000 registrants. All in-person attendees and exhibitors were fully vaccinated. There were no issues about flying or wearing a mask or being vaccinated — the sentiment was all about being here for the live experience. Skift: What sentiments are you hearing regarding intent to travel for business versus staying in the virtual space? Allison: Our team has found a good balance between being efficient and productive both at home and at the off ice. The two are not mutually exclusive. Personally, I find the notion of working in the office five days a week to be somewhat archaic, especially in sales. Engaged mostly on the phone and on the road, they can be productive in different and flexible ways. Massari: I’ll say it again more strongly. Humans are hardwired for the multi-dimensionality of the live, in- person experience. Videoconferencing may replace all kinds of telephonic and written communication, but there’s no chance it will replace important face-to-face business interactions or events, no matter how small. What counts is what you want to accomplish, and how the investment in time and travel matches the likely outcome.

The State of Corporate Travel and Expense 2022 36 SKIFT + TRIPACTIONS That goes with spend management. It is critical to understand what type of interactions you want for what type of functions, and in turn, what kind of money you want to spend on those types of interactions. In our business, we talk about being f rugal with some expenditures so that we can spend big on more important things. Skift: How is your organization coming to terms with heightened responsibilities to your employees and customers in the post-pandemic context? Allison: Prioritizing health and safety f rom the outset of the pandemic, we continue to enhance and evolve what’s best for our team members, our customers, and the community. Communication is an essential component. We reach out to customers on a regular basis to keep them updated on changes and ways we are working to keep them safe. Glanzer: For me, duty of care means knowing every statistic as a determinator of travel safety. Covid-19 rates, ICU hospitalizations, mask mandates, vaccination positivity, and health and hygiene protocols all come into play when looking at a given destination. Customers want clarity. Nevada’s reinstatement of the mask mandate has made many groups more comfortable about coming to Vegas precisely because it was mandated. And when they have questions about health and safety, we are ready with solutions such as our Convene with Confidence program, which includes onsite PCR rapid testing, Health Pass by CLEAR, and more. Massari: While duty of care can mean something different to different companies, one of the few positives coming out of the pandemic is that duty of care has taken a more prominent seat in our industry and the world at large. What we ask people to do in terms of traveling and meeting for business carries weighty obligations. We are responsible for where we send our folks. We are responsible for them while they are there. We are responsible for our team members and attendees on our properties. Our customers are responsible for their people. When companies use our facilities, our duty of care mentality must match theirs. That’s a positive for everybody that I hope stays permanent.

The State of Corporate Travel and Expense 2022 37 SKIFT + TRIPACTIONS CONCLUSION In 2020, Covid-19 changed the playing field for everyone participating in the corporate travel and spend communities. Yet even in the toughest moments of the pandemic, companies across industries found creative ways to cope, pivot, and keep the lights on. During the extended shift to videoconferencing and virtual meetings, organizations used the time to rethink and reimagine business policy, spending, and process, travel included, as they reckoned with a notional “new normal.” Looking ahead to 2022, clarity is replacing much of the uncertainty f rom the past year. The fundamentals of business travel remain rock solid. Instead of shaking foundations, the pandemic’s seismic disruption only cemented the corporate community’s universal, undying embrace of meeting and transacting business in person. As 2022 approaches, this year’s survey and accompanying research revealed that “absence makes the heart grow fonder” is the defining sentiment of the time. If executives and salespeople had not locked into the value of renting a car, boarding a train, or taking to the f riendly skies before, the forced takeaway of business travel provided a vivid awakening. The pandemic’s disruptions may linger in some corners of the industry for an indef inite amount of time. But corporate travel and spend are already

The State of Corporate Travel and Expense 2022 38 SKIFT + TRIPACTIONS making significant strides to adapt to the new reality. Airline seats, hotel beds, and convention floors are on course to return to and then exceed pre-pandemic levels. Confidence in health protocol and vaccination measures is one driver. Another is the growing demand and desire to travel. And as the sector looks to flourish anew, companies, travel managers, and employees will go forth equipped with an emerging set of dynamic new travel solutions. Spend management in particular is emerging in a more agile, intelligent, and resilient state, offering f inance teams enhanced all-in-one visibility into and control over the process. More streamlined, unified, efficient, and easy to use than before, travel and expense platforms may be the pandemic’s ultimate silver lining as we move into the future.

The State of Corporate Travel and Expense 2022 39 SKIFT + TRIPACTIONS ABOUT SKIFT ABOUT TRIPACTIONS Skift is the largest intelligence platform in travel, providing media, insights, and marketing to key sectors of the industry. Through daily news, research, podcasts, and Skift Global Forum conferences, Skift deciphers and defines the trends that matter to the marketers, strategists, and technologists shaping the industry. SkiftX is Skift’s in-house content marketing studio, working collaboratively with partners like Adobe, Airbnb, Hyatt, Lyft, Mastercard, and many more on custom projects to engage the world’s largest audience of travel influencers and decision makers. TripActions is a leading corporate travel and expense management platform trusted by 5,000+ global companies such as Crate & Barrel, GameStop, Dropbox, Pinterest, and Wayfair. TripActions empowers organizations with real-time data and insights to make business decisions, paired with flexible travel and spend management tools that enable quick and decisive action to keep traveling employees safe, control costs, and save money. Learn more at tripactions.com . Join the TripActions Community at community.tripactions.com . #LetsGo Visit skiftx.com to learn more or email [email protected].