Tag: geopolitical

Business Leaders Say The Nature Of Business Travel Has Changed Forever Due To Technology

The latest business leader research from International Workplace Group, the world’s largest provider of flexible workspace with brands including Regus and Spaces, underlines the changing nature and frequency of business travel.

The International Workplace Group report highlights how business executives are prioritising strategically important meetings for corporate spend, while routine meetings between global participants are taking place largely online using the available technology, amidst rising costs, environmental concerns and geopolitical uncertainty.

The study among more than 500 business leaders highlighted that the rapid development of digital infrastructure means functional meetings can now be held online. More than three quarters (77%) of business leaders say technology has enabled them to continue to conduct pure ‘business as usual’ meetings virtually to drive efficiency.

That’s not to say business travel has been made redundant by hybrid working. In fact, the majority (87%) of CEOs firmly believe that technology will never replace the value of strategically important face-to-face meetings, and business travel will invariably play a crucial role in strengthening relationships and when signing key commercial deals.

The rising cost of business travel

A third of business leaders cited escalating costs as an influential factor for their post-pandemic travel decisions. Research into the cost of business travel by Harris Williams found that airfares had risen by 38%** when compared to pre-pandemic prices and hotel costs had risen by at least 82%***. With an expectation of continued growth in 2025, 77% of CEOs noted that the ability to host meetings virtually enables them to reduce the number of business trips, allowing for a focus on crucial face-to-face meetings.

Geopolitical uncertainty

Looking at other macro trends, CEOs said that increasing geopolitical uncertainty had significantly impacted the nature of travel at their companies. One in five said that the current geopolitical climate has had a major impact on business travel, with changes in the global health landscape (19%) and visa regulations (19%) also influencing how they prioritise strategically important travel.

Environmental considerations

As companies look to reduce their environmental footprint, many are more considered in their approach to corporate travel. Three quarters (75%) of leaders said that the development of hybrid work and the adoption of online platforms has enabled them to reduce the number of environmentally unfriendly trips. For larger organisations facing greater scrutiny over their carbon emissions, corporate ESG reporting and policies have led to leaders being more strategic with their travel plans.

Extending business trips to maximise efficiencies

Three quarters (75%) of corporate leaders said that business travel is now more efficient and more than half (61%) say they tend to travel less but stay longer due to the availability of flexible workspaces enabling them to remain productive between meetings. A quarter (26%) now extend their travels to fit in additional meetings, reducing the need for short visits, whilst others (23%) have attended industry events or conferences to maximise their trips.

As leaders enjoy greater flexibility in their working patterns, 87% are spending the extra time to enjoy their destination and experience local culture. One quarter (24%) said they had actually combined a work trip with a holiday. In an encouraging move for the whole business, the benefits of travel and leisure are not exclusive to leaders – with 74% encouraging their employees to work from abroad to make the most of travelling, too.

Mark Dixon, International Workplace Group CEO stated: “Advancements in digital technology coupled with the rising cost of international travel, geopolitical uncertainty and environmental considerations mean the world of business travel has been transformed and we are unlikely to see a return to pre-pandemic levels.   “Executives are now prioritising travel for the most strategically important meetings such as major business deals or nurturing significant relationships with partners. For these types of occasions, technology can and will never replace the value of in-person transactions for the most valuable meetings.”

*Research among 500 CEO participants in June 2024 by Mortar. Mortar is Market Research Society (MRS) accredited and the research adhered to MRS guidelines.

** Global Travel Outlook Spring 2024 Report by Harris Williams, OC&C Strategy Consultants

*** Data sourced for i by hospitality data intelligence firm Lighthouse.

CEOs in Ireland upbeat on growth and profitability

CEOs in Ireland are upbeat about their growth prospects over the next 12 months in spite of global economic and geopolitical uncertainty, holding a positive outlook on profitability, access to investment capital and managing business costs according to the latest EY CEO Outlook, which surveyed 1,200 executives globally – including leading CEOs in Ireland.

CEOs in Ireland display a notable degree of optimism regarding the future of their businesses, particularly in light of the significant cost increases experienced over recent years. A majority (60%) are either very or somewhat optimistic about managing input costs and the overall cost of doing business in the upcoming year. When it comes to business growth prospects, the outlook is even more encouraging. Revenue growth and profitability are areas where optimism prevails, with 60% and 67% of CEOs, respectively, expressing positive expectations. The sentiment around investment capital and free cash flow is also upbeat, with 63% of CEOs positive.

This optimism amongst CEOs here is in line with international trends, where CEOs remain confident about economic growth prospects over the next 12 months. Nearly seven in 10 (69%) of the CEOs surveyed globally are feeling optimistic about the outlook for the coming year even as they continue to navigate the complexities of an unpredictable and volatile business environment, shaped by emerging technologies, shifting consumer behaviour and an uncertain geopolitical landscape.

Globally, shifting geopolitical disruption was cited as one of the top three disruptive forces over the coming year, however this ranked fourth amongst CEOs in Ireland, with AI and emerging technologies (44%), supply chain pressures (43%), and climate change and environmental issues (40%) cited as key disruptive forces. While the research was conducted in advance of the recent US elections, this points to a resilience and optimism of CEOs who have in many instances dealt with a decade of disruption and who remain optimistic for the future.

Helena O’Dwyer, Head of Strategy at EY-Parthenon Ireland, says “In spite of the many economic headwinds, uncertain geopolitical currents, and wider disruptive forces at play, CEOs here in Ireland and globally are upbeat about their firm’s performance over the coming 12 months.  Increasingly, we are seeing that CEOs are starting to shift from being reactive to proactive in a bid to get ahead. A combination of pragmatic optimism and a fear of being left behind is expected to drive investment and activity over the coming months.”

Carol Murphy, EY Ireland Head of Markets, said “A CEOs mandate includes the responsibility to navigate the complexities of technological change with foresight and determination. Through this survey, we see that CEOs in Ireland are confidently combining smart technology investments with a strong emphasis on their people. They are also prudently enhancing the resilience of their supply chains and ensuring that environmental and social responsibility is ingrained in their core values. There is a real proficiency amongst CEOs today in harnessing disruption as a key enabler of business which is invaluable in the digital age.”

Increasing Optimism on M&A

This optimism on business performance is leading to an increasingly positive outlook on M&A from CEOs. Globally, a strong majority of CEOs (70%) say they are seeking M&A and transaction opportunities, signalling a determined drive for growth as interest rates and the cost of capital fall and inflationary pressures subside. There has been a noticeable increase in activity and positivity in the Irish market with 921 M&A transactions recorded in the 12 months to October according to EY Competitive Edge Research. Additionally, half of respondents in Ireland said they are considering strategic divestments, spin offs or initial public offerings (IPOs).

Helena O’Dwyer, commented, “The M&A market in Ireland has shown resilience over recent times, with a promising uptick in activity. CEOs should now focus on strategic agility, leveraging opportunities for growth through acquisitions, while also considering divestments or IPOs to optimise their portfolios in response to an evolving financing market.”

Talent Retention and Acquisition

Despite the substantial optimism among CEOs in Ireland, concerns remain over attracting and retaining talent. While over half of CEOs here (53%) feel confident they can attract and retain talent, this trails behind the global average of 70%. This reflects a tightening of the labour market at home and highlights a skills shortage in key sectors with the country at near full employment. Despite the recruitment concerns, almost two thirds of CEOs (63%) are confident in being able to offer competitive salaries.

Helena O’Dwyer says: “Despite some concerns over costs and margins, CEOs are mainly optimistic. They know that staying vigilant on costs is key to success. The talent gap is real, but it presents an opportunity to continue to innovate and invest in our people, making Ireland a magnet for global talent. By focusing on continuous learning and employee development and upskilling, we can turn challenges into a competitive edge.”

AI And Emerging Technologies Outweigh Geopolitical Concerns

When asked to name the top three disruptive forces poised to drive significant change in their industry and key markets over the next 12 months, Irish CEOs identified emerging technologies and AI at the forefront (44%), followed closely by supply chain pressures (43%), while 40% identified climate change and environmental issues as key disruptive forces.

This prioritisation of AI and technology reflects a growing recognition that it is not merely a tool for productivity improvement, but a strategic lever that can fundamentally reshape business models and customer engagement, ultimately driving competitive advantage. Interestingly, sentiment regarding AI and emerging technologies is more robust among CEOs in Ireland compared to global respondents, suggesting a proactive approach to integration and innovation in Ireland.

Eoin O’Reilly, EY Ireland Head of AI and Data, says “Understanding how to effectively utilise AI goes beyond surface-level implementation; it requires recognising the integral role of trust and the need to focus on commercial value, something Irish business leaders really appreciate. Over the past year, we’re seen our clients here in Ireland deliver remarkable outcomes from AI applications such as driving exceptional sales performance, enhancing patient care and boosting employee productivity”.

 To read the full report, please visit: ey.com/CEOOutlook.