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The hidden link between business travel and employee retention

SMEs don’t need big corporate budgets to create travel experiences that retain top talent

Everyone knows how important it is to hang on to good staff, and how disappointing it is when one of your best people leaves. And it’s felt more keenly in smaller businesses. For an SME, losing a key employee is not just an HR inconvenience; it can shake team morale, disrupt operations and impact customer relationships – and that’s not taking into account the loss of institutional knowledge or the cost of replacing someone (which can cost a business anywhere from one-half to two times the employee’s annual salary).

While SMEs may not be able to compete with the likes of a multinational when it comes to salaries, Corporate Traveller South Africa believes they can – and do – compete on flexibility, career growth, recognition, a positive culture and, increasingly, the business travel experience.

In fact, global research by employee benefits platform PerkSpot reports that 63% of employees say travelling for work makes them more likely to stay with their employer – a figure that jumps to 76% among Gen Z. Even more compelling? Companies that increased their travel budget in 2023 had an employee turnover rate of 8.6%, sitting below the industry average of 10% and a full 3.5 points lower than companies that reduced their travel budgets.

“For SMEs facing the same travel complexities as large corporates but with far fewer resources, this presents both a challenge and an opportunity,” says Herman Heunes, GM of Corporate Traveller. “Investing in business travel is a given, but you need to make sure it doubles as a retention tool.”

The shift from wellness to wellbeing

Speaking at the Global Business Travel Association’s (GBTA) 2025 Southern African Conference, Prof. Anneli Douglas explained that while traveller wellness focuses on the physical and mental health aspects of travel (including healthy food and maintaining a fitness routine), wellbeing is different. Here the focus falls on emotional health, including work-life balance, safety and security, emotional support and cultural sensitivity.

Put simply, wellness means a comfortable seat and an on-site gym.  Wellbeing means the entire journey feeling purposeful and friction-free. As Business Travel News Europe reported in December 2025, “organisations have recognised that a friction-free travel experience is directly linked to employee wellbeing, productivity, and retention.”

This matters because mobile team members face long days, frequent travel, unpredictable schedules, and extended time away from home. These pressures build quickly and can influence morale, performance, and the likelihood of someone staying in their role. In 2026, businesses are expected to respond with more practical improvements focused on fairness, predictability and support.

The gold-standard traveller experience

In good news for SMEs, Heunes says that a gold-standard travel experience isn’t about luxury; it’s about removing friction and showing you value your people’s time and wellbeing.

Before the trip, this means clear policies, realistic itineraries, and proper rest between trips.

During travel, it means strategic investments like premium economy seating (which, according to Corporate Traveller data, has jumped 35% year-on-year among SMEs) and decent accommodation near meeting locations.

After the trip, it means fast reimbursements and reduced out-of-pocket costs. And throughout the entire journey, it means robust duty of care: 24/7 support and comprehensive travel insurance.

For Heunes, this last point matters more than ever, as employers have a responsibility to protect their staff against increasingly complex travel risks – yet a significant proportion of business travellers still don’t know who to contact in an emergency or whether they’re adequately covered.

“We’re seeing a fundamental shift in how SMEs evaluate travel spend,” says Heunes. “It’s no longer just about the lowest airfare. Businesses are looking directly at the traveller experience: balancing cost against comfort, productivity, safety and employee wellbeing – and recognising that how people travel directly impacts retention. For example, travel insurance is a non-negotiable and premium economy is emerging as the sweet spot for long-haul routes.”

Small budgets, big impact

For Heunes, high-impact changes don’t require massive budgets:

Policy flexibility costs nothing. Think bleisure extensions, flexible working hours or a post-trip recovery day.

Strategic comfort investments pay for themselves. Premium economy on long-haul flights and booking accommodation near meeting locations saves time, reduces stress, and delivers measurable productivity returns.

Streamlined admin shows respect. Faster reimbursements reduce financial stress on your team, clear booking channels prevent confusion and policy violations, and simple expense systems respect your employees’ time – something they won’t forget during retention conversations.

Genuine support builds trust. Ensure employees know who to contact in a crisis. Provide comprehensive travel insurance that covers medical care, accidents, and disruptions. And perhaps most importantly, partner with a travel management company (TMC) that offers 24/7 travel assistance.

Purposeful travel prioritises growth. Research routinely shows that employees see business travel as an important part of their career growth. Forward-thinking organisations ensure each trip has clear objectives, allow time for meaningful connections (rather than rushed meetings), and recognise that business travel can be an engagement and development tool, not just a logistical necessity.

The bottom line

In 2026, as budgets tighten and talent wars intensify, business travel is about showing employees they’re valued enough to travel comfortably, supported enough to handle disruptions, and trusted enough to blend work with wellbeing.

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