Global business travel spending is projected to reach $1.64 trillion in 2025, with the financial and insurance sectors projected to experience the most significant expansion.
In fact, 58 percent of financial advisors believe in-person meetings are critical for cultivating client relationships in 2025.
Despite advancements in virtual communication, I’ll discuss why the human element of business travel will always matter and its positive impact on the finance sector.
Trust and relationship building
Although technology can go a long way in helping financial advisors, research suggests most industry professionals believe clients will continue to value a business relationship with a personal touch.
Current research supports this, showing business travel can have a positive ROI, boost a company’s performance, and increase sales. One key reason is that because finance deals often involve large sums of money, high stakes, and long-term commitments. Face-to-face interactions help establish trust and rapport more effectively than digitalcommunication.
In fact, it’s often under-estimated how much in-person cues can impact the success of a business relationship. Factors like strong eye contact, positive body language, and informal conversations where we discover what we have in common, often create a stronger bond between parties. This, in turn, increases the chances of future business collaborations.
Financial negotiations can also be nuanced and sensitive. In-person meetings allow for real-time adjustments in tone and strategy, something that's hard to replicate over email or video calls.
Cultural intelligence
Understanding cultural differences is essential when conducting international business. So much so, that 90 percent of executives identified cross-cultural management as their top global challenge.
During meetings, proper team communication relies on knowing the expectations of different cultures, and what gestures to use so that they know exactly what you mean. If the people in charge of these ventures are not aware of the impact of their behaviours on cross-cultural relations, misunderstandings, and communication errors can occur.
Even the smallest of cultural mistakes can cause huge offence. Body language and hand gestures are major yet underrated aspects of communication. For example, a thumbs-up might be seen as a show of positivity or support in American culture, but for Iranians, it is the equivalent of a middle finger.
Before an international business meeting, do some research on the destination country's history, politics, religion, and social norms, before your meeting. You can use online resources or printed guides to learn more about the culture and the dos and don'ts of interacting with global businesses.
Consult with your contacts in the country, like your clients, partners, or colleagues, to get some insider tips and advice.
All this preparation prevents cultural faux pas or misunderstandings that could hinder any future business relationships.
Complex collaboration
Nearly 60 percent of business leaders believe a strong travel culture is imperative to their organisation’s performance.
Showing up in person sends a message of seriousness and professionalism. In high finance, where reputation carries immense weight, being physically present reinforces a firm’s or individual’s commitment and credibility.
For deals involving investments, acquisitions, or project financing, on-site visits are also often critical. They provide firsthand understanding of operations, management, and infrastructure, which can't be fully understood over a call or email.
Tasks like brainstorming, negotiating, or troubleshooting benefit hugely from being together in person. Physical presence can lead to more spontaneous creativity and faster resolution of problems during meetings.
Some of the most valuable conversations also happen outside of formal meetings, at dinners, networking events, or during travel downtime. These moments often lead to deeper insights, or breakthrough ideas, improving collaboration between all parties.
Boosting the bottom line
40 percent of travellers noted business travel strengthened their professional relationships, with employees receiving firsthand training in local business practices, technology applications, and relevant regulatory frameworks.
This exposure broadens their perspective, allowing them to bring fresh ideas and innovative solutions back to their company. This, in turn, boosts a company’s overall business performance.
Feedback based on employee understanding of developments in the global marketplace allows for improved decision-making, enhanced negotiation skills and better cultural understanding.
Business travel can also provide opportunities for team members to bond, collaborate, and it reinforces company culture.
In conclusion, while technology has made remote work and communication easier, the high-touch nature of finance means the human element of business travel remains irreplaceable for forging trust, managing risk, and sealing those lucrative deals.
