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Feature - Business Travel
Business as usual?
The business travel sector has been navigating through challenges brought about by the pandemic. As the sector learns to adapt, it is poised for recovery
Virtual meetings have fundamentally altered the way people do business. Although the ability to connect with each other virtually across the globe in a matter of minutes meant that businesses in the COVID-19 age could operate with some relief, this resulted in the corporate travel sector taking a severe hit. Even with restrictions lifting globally, companies are still expected to keep a tight rein on their budgets, further shadowing business trips in the coming months. Yet, there are a few positive indications that signal the return of business travel. Spotlighting the future of the industry, ATM 2022 will host two sessions organised by the Global Business Travel Association (GBTA) today, offering insights into the nature of business travel. Ahead of the session, we spoke to Catherine Logan, Regional Vice President – EMEA, GBTA, and Chris Pouney, Associate, GoldSpring Consulting, who highlight what attendees can expect.
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POSITIVE FORECASTS According to the GBTA Business Travel Index – the BTI™ Outlook – global business travel is forecast to have made a full recovery by 2024. The report, which provides a detailed analysis of business travel in 2021, with projections for 2022 and beyond, including post-COVID-19 recovery forecasts, states that the year is likely to end at US$1.48 trillion, just above the 2019 pre-pandemic spend of US$1.4 trillion. “Global business travel activity has begun its rebound from the sharp downturn brought about by the COVID19 pandemic,” said Catherine Logan. After declining 53.8 percent in 2020 to US$661 billion, global expenditures are expected to have rebounded 14 percent in 2021 to US$754 billion. The report further states that despite recovery setbacks in 2021, a year-over-year surge of 38 percent is expected in 2022 as recovery and
With corporate travel now showing green shoots, travel industry businesses are strategising to balance their operations to accommodate for this gradual recovery process
pent-up demand kicks into a higher gear, bringing global business travel spending back to over US$1 trillion. Recovery will continue into 2023, with global spending rising 23 percent year-over-year as even more international and group travel comes back on track. In 2025, global business travel growth is forecast to slow to 4.3 percent – just below the 10-year average growth rate of 5.1 percent coming into 2020 – ending the year at a forecasted US$1.5 trillion. Logan explained: “There are many positive indications that business travel is returning, especially over the last couple of months as global travel restrictions have loosened. Business travel bookings continue to build momentum with month-on-month increases, while businesses report an increase in employees’ willingness to travel and to blend business travel with leisure time. “On average, travel buyers say that their company’s business travel
09/05/2022 7:56 PM
