The ‘bleisure’ divide reveals generational differences in business travel
After a slow recovery from the pandemic-era collapse of corporate travel, the sector is booming again. Navan’s latest Business Travel Index shows business travel activity up 15% year over year and 54% above the post-pandemic baseline set in early 2023. Yet the comeback looks very different depending on who’s doing the traveling.
Hotels.com’s new Business Trip Report paints a picture of a new generation of business travelers who view travel as more than a job requirement. Eighty-five percent of Gen Z and 88% of millennials say work trips are a chance to “upgrade” their lifestyles. Compared to just under half (48%) of older professionals, younger travelers are far more likely to see business travel as a personal perk — an opportunity to book nicer hotels, enjoy luxury dining and capture social-media-worthy moments along the way.
That generational shift is creating a disconnect inside many organizations. While CFOs focus on controlling expenses and maximizing ROI, younger professionals are measuring the value of business trips in entirely different terms — status, experience and personal and professional recognition.
The “upgraded life” generation
Younger business travelers are redefining what it means to make the most of a work trip. Hotels.com found that 73% of Gen Z and 77% of millennials have paid out of pocket to upgrade to a nicer hotel, compared with less than half of their older colleagues. Data also shows 62% of Gen Zers have personally paid to upgrade flights, and 73% have spent their own money on high-end dining or entertainment while away for work.
They’re also blending work and leisure in new ways. Forty percent of millennials say they’ve booked a red-eye flight to gain more personal time at their destination, and 54% said they’d like to extend a business trip to explore solo. Among Gen Z travelers, half say they’d like to bring a plus-one, with 45% wanting to spend extra time hanging out with coworkers after the official work is done.
Nearly three-quarters of younger travelers document their trips on social media, Hotel.com research says, posting three to five times more per day than older colleagues. Millennials are less likely to share their trip on social media, but those who desire to are dedicated. Nearly half (47%) of millennials say they wouldn’t want to travel for work if they couldn’t share the experience online.
This trend aligns with what Navan’s data reveals about travel behavior. While individual travel is rising, team events and off-sites have flattened. Taxi and rideshare transactions jumped 22% year over year, personal meal spending rose 10% and black car usage climbed another 10%. Yet team meals and group events declined slightly, down 0.1%. Business travel is becoming more individual, less communal — matching the preferences of younger employees who prioritize independence and flexibility.
The generational divide isn’t just cultural because it also reflects how employees interpret company values. For Gen Z and millennials, the quality of travel accommodations or the ability to extend a trip feels like a signal of how much the company values them. A business trip that feels bare-bones or overly controlled doesn’t just affect morale; it can shape how younger workers view the organization as a whole.
A misalignment of purpose
CFOs are managing travel from a very different perspective. Navan’s research shows companies are increasingly channeling funds into targeted, ROI-driven trips rather than internal gatherings. Finance teams are encouraging managers to batch travel, plan around peak seasons and tie approvals to measurable outcomes.
The approach makes sense on paper. Navan found that travel demand peaks twice a year — around springtime and September — coinciding with planning cycles and client meetings, before dipping during the summer and holiday seasons. This rhythm creates a predictable environment that allows CFOs to forecast costs, manage approvals and reduce last-minute bookings that drive up expenses.
But what finance teams see as discipline, younger workers may interpret as restriction. Hotels.com found that over half (58%) of business travelers make booking decisions based on loyalty rewards, and nearly half (49%) have used those points for leisure travel. When policy constraints prevent them from earning or redeeming rewards, some employees may be deterred or less interested in travel. However, other research has suggested that employees will trade off those benefits for other perks like keeping their expenses low during travel.
Even the destinations that employees are interested in going to reflect a generational split. Gen Z and millennials list Tokyo, Paris and New York as their dream business travel locations, while older professionals prefer London and domestic destinations. Gen Z is five times more likely than baby boomers to want to visit a place like Seoul on a work trip, for example. This phenomenon suggests that for younger workers, global exposure and novelty matter as much as the meeting itself.
That divergence may also be creating tension. CFOs are under pressure to justify every dollar of travel spend amid uncertain macroeconomic conditions, while younger workers are treating those same trips as both professional opportunities and lifestyle benefits. The result is a mismatch between intent and interpretation: Companies are sending employees on trips to close deals or build relationships, but those employees are using them to express autonomy, social presence and personal identity.
Redefining travel as engagement
The next test for CFOs may not be cutting travel budgets, but making them within the context of the desires of both the business and the traveler. Business travel is one of the last tangible experiences that ties employees to a company’s brand, and one of the few things AI hasn’t threatened to replace for younger finance workers.
Choice and autonomy under a set of frequently referenced guidelines may be the sweet spot of enforcement here. Giving employees limited autonomy, such as choosing between approved airlines, booking classes or reward structures, could make policy feel like empowerment rather than enforcement.
Navan’s data reinforces this opportunity. The 31% rise in business travel within financial services, 25% in media and entertainment and 18% in professional services suggests that high-contact industries still see value in face-to-face connections. But as younger professionals take on more client-facing roles, their expectations for travel comfort and personalization will only rise.
To bridge the gap, CFOs and HR leaders may need to align travel budgets with engagement strategy. That could mean flexible travel allowances, opt-in reward programs or wellness-oriented add-ons like rest-day stipends after long-haul flights. These approaches acknowledge the personal side of business travel without abandoning financial oversight.
The takeaway is that while business travel is back, its meaning has evolved because the desires for those doing it have changed. For older generations, it was about access and opportunity. For younger ones, it’s about experience and expression. CFOs who understand that shift and design travel policies that balance cost control with cultural relevance may find they’re not just managing expenses, but strengthening loyalty at the same time.
At a time when talent retention and employee sentiment are top concerns, how companies handle business travel can be highly revealing. The trip still has to make business sense, but for younger professionals amongst and adjacent to Gen Z, it also has to have some sort of personal upside.
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