The latest report of the Global Business Travel Association (GBTA) stated that there is a very slow return to the business tourism sector and international conferences to its pre-pandemic “Covid-19” state, as research shows that business travel is still down by about a quarter compared to pre-pandemic times. pandemic. The report expected the recovery to continue, but at a slower pace, due to companies adopting new policies left over from the pandemic, including video conferencing and remote work.
According to the “simpleflying” website that specializes in aviation news, the report indicated that business travel will not return to the same as it was at all, as it will continue to recover steadily, but it will look slightly different in terms of what and how? That is, according to the purpose of travel and the importance for companies. The report added that the travel of businessmen and corporate employees is a large market for airlines, especially in the United States of America, and although it represented only about 12% of air travel in the pre-pandemic period, it accounted for about half of the aviation industry’s profits for its role in achieving A high occupancy rate in the premium class and business class, which confirms the airlines’ keenness to return these travelers.
“I think it’s still too early to talk about 100% returning this type of travel,” said Steve Solomon, chief commercial officer at ARC Travel. “It will definitely come back, but I won’t give a date.”
“Bookings are still down by a quarter despite the increase from 2022,” Solomon added. “Corporate travel bookings remain approximately 25% below 2019 levels. As an important segment for US airlines, the deficit is hitting the sector hard.”
Research conducted by Morning Consult indicates that business travel in the US increased slightly in 2022, but only very slightly. Domestic travel in the US rose from 8% at the start of the year to 9% by December, while international travel rose from 5% to 6% which is a sign in the right direction, but the recovery is slow.
Also, according to Morning Consult’s research, the idea of travel echoes less in stats as many companies have made changes to their travel policies, including reducing the types of trips, people traveling, and more scrutiny of expenses.
The research also shows that the new situation has imposed itself strongly as more companies are adopting the mixed business model. While working from home was an exception before the pandemic, now it is in demand and in abundance, and companies are realizing the benefits that come with offering employees more flexible arrangements through remote meetings.
Research by Morning Consult backs this up. The main reason for travel remains to attend conferences or seminars, but to attend internal company meetings is the second most common reason to travel, on par with travel to client meetings offset by working and meeting online.
