In a world where video calls replaced handshakes, the return to in-person work isn’t just a shift in office dynamics – it’s a powerful catalyst for economic recovery.
On his first day in office, President Donald Trump signed an executive order directing all executive branch departments and agencies to end remote work arrangements and require employees to return to full-time, in-office work. This shift, mirrored by many private companies, will have far-reaching effects – not just on workplace productivity but also on industries like travel, tourism, and hospitality.
Business travel’s rebound
Business travel has transformed in the post-pandemic era.
In April 2023, Morning Consult reported that business travel would never fully rebound to pre-pandemic levels, citing an 18% decline in the share of U.S. adults traveling for work. Yet, a new Deloitte study now finds that 75% of corporate travel managers expect their companies to increase business travel spending compared to the prior year.
Companies are prioritizing fewer but longer, more purposeful trips – leading to a growing trend of business travelers extending their stays for leisure.
Economic impact of business travel
Business travel has long been instrumental in revitalizing major U.S. cities like New York and Chicago.
In 2024 alone, New York City’s business travel sector contributed $79 billion to the tourism industry, supported over 388,000 leisure and hospitality jobs, and generated more than $6.8 billion in tax revenue.
This influx of business travel has driven up hotel occupancy rates, increased restaurant patronage, and created jobs, reinforcing economic stability. The hospitality sector, in particular, plays a vital role in broader economic recovery.
Ripple effect of federal return-to-office mandate
The mandated federal return to office will create a positive chain reaction across multiple industries:
• Increased foot traffic around federal buildings will benefit local businesses, from restaurants and coffee shops to dry cleaners and gyms.
• Public transit systems – critical to cities like Washington, D.C., and New York – will see a revenue boost, strengthening municipal budgets.
• Demand for in-person corporate events, trade shows, and client meetings will drive business for hotels, event spaces, and transportation services.
• Hotels, already experiencing an uptick in occupancy, will see sustained demand for accommodations, conference rooms, and hospitality services.
• Small businesses in retail, dining, and entertainment will thrive as business travel and in-office work drive increased spending.
Personal perspective
“Having witnessed the hospitality industry’s resilience – from the 1980s hotel bust to the COVID-19 pandemic – I was confident that work and leisure travel would eventually rebound. Now, policies promoting in-person work are proving crucial to revitalizing the industries that serve as the backbone of our economy. With travel costs easing, inflation stabilizing, and a nationwide return-to-office push, companies are increasingly sending employees to meet clients and colleagues face-to-face.”
Now is the time to embrace the opportunities that come with bringing workers back into the office – reinvigorating hotels, restaurants, and local economies in the process.
