Industry News
How to Create a Smart Budget for the Comeback of Business Travel By Greg Williams
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f nothing else, the past two years have taught business travel managers that it’s wise to plan for the unexpected. At the beginning of the COVID-19 pandemic, many of us thought we’d be back to business as usual in a couple of weeks. Yet nearly two years later, people are lined up in droves to get tested for the omicron variant. Kenyatta International Confe And business travel, while higher Dakar International Conference Center than it was at this time last year, isn’t predicted to return to prepandemic levels until 2024, according to research 2024. Despite setbacks in recovery in 2021, the research predicts that pent-up demand in 2022 by the Global Business Travel Association. A lot of uncertainty remains around the future will help business travel spending reach more of corporate business travel, which is no surprise than $1 trillion. At the same time, hotel rates are expected to rise as we consider some factors surrounding the industry: new variants of the virus continue to 13% globally in 2022. This includes higher room disrupt the world, many people have come to rely rates for upscale hotels, which are expected to on video communication platforms to conduct experience higher occupancy levels as business business meetings and some companies’ travel travel returns. Airfare won’t surge quite as much but is anticipated to cost 3.3% more in 2022 than budgets have been reduced. According to a recent Skift survey, however, in 2021. Corporate travel and entertainment is normally 45 percent of corporate travel decision-makers said their company’s COVID-related travel a company’s second-highest indirect expense just policy changes were temporary, while 22% said behind payroll, according to Mastercard. While it their organization hadn’t altered its policy at all. would make sense on paper to slash corporate Business travel is trending in a positive direction, travel in favor of Zoom, Microsoft Teams or particularly as global travel bans ease up in many other video communication platforms, it’s hard to replicate face-to-face meetings, especially when countries. As corporate travel increases, it’s important you’re meeting a new client for the first time or to plan 2022 budgets to meet the needs of your closing a sale. Based on these predictions and trends, here are employees, especially as the cost of traveling is expected to rise for businesses, too. Here are a few takeaways to make the most of your 2022 a few expectations for the industry, followed by travel budget. suggestions for better business travel budgeting. 1. Plan Your Spending Wisely A Few of Our Business Travel Predictions To make the most of your 2022 allocation, business As mentioned earlier, the GBTA business travel managers should take a look at corporate travel index forecasts that global business travel travel spending in 2018 and 2019. Account for spending will surge in 2022. A return to pre- the number of business trips taken, the average pandemic spending of $1.4 trillion is expected in length of stay and the cost of airfare, ground 14 | ABA Publications | Africa TRAVEL | May 2022
