Is Business Travel a Permanent Basis?

As leisure travel increases this summer, business travel allows Zoom meetings over zoom jets as flight delays and rising costs are found by viewing companies. heavily on travel costs, leaving many wondering if training will ever return to earlier levels.

In its “Business Travel Tracker-2022 Q2” survey taken in May, the US Travel Association (USTA) found that more than two-thirds of corporate executives expect the company they work for to spend less on travel to business over the next six months compared to the same period in 2019. This is true for all travel purposes. ”

About one-fifth of business travelers surveyed said they weren’t sure when they would hold a conference or trade show in the next six months. The most frequently cited reasons include the rise of videoconferencing, international travel restrictions, costs and other barriers.

In a separate blog post, USTA said, “Despite the agreement that reducing business travel will hurt long-term sales, more than two-thirds of executives expect their company to spend less than business travel over the next six months compared to the same period in 2019. In addition, half of companies still have policies in place that restrict business travel. “

Read more: Business Travel is Likely to See 2019 Levels Again Until 2024 – If Ever

This comes as major airlines prepare to release quarterly revenues that are expected to improve over previous quarters, based on confined leisure travel demand that has reduced flight schedules full of holidaymakers, but not much business. traveler.

Ironically, most of the research conducted has focused on those who return to travel for business and are not happy about it. According to the 2022 SAP Concur Global Business Travel Survey of business travelers and managers, “Business travel is clearly not available for all employees because 83% agreed that their company seems to have implemented‘ more travel on fewer shoulders ‘approach, returning to the pre-pandemic level of travel, “but only for key personnel.

The situation is of concern to travel managers, with the SAP Concur survey stating that 100% of travel managers “expect their role to be more difficult in the next 12 months compared to last year, with almost half (49%) report that the stress is coming from above, by increasing pressure from senior leadership to demonstrate the ROI of their role. ”

Dueling Outlooks

While the outlook is somewhat bleak for corporate road warriors, there are some encouraging trends in corporate travel that show that business still values ​​personal meetings.

The Las Vegas Convention and Visitors Bureau (LVCVB) reported in May that trade show and conference activity increased 878%, compared to the first half of 2022 last year.

LVCVA board member and Clark County Commission Chair Jim Gibson told FOX News Las Vegas, “All the shows are still coming back and coming back to town. We’ve signed more specialty shows than ever before. We’re continuing to sign up. new shows every day.We predicted maybe 2024 before we were fully back in. I think someone could make the argument that could have happened sooner.

See also: Summer Series 2022: ‘Revenge Travel’ Roars to Life With a Connected Economy Twist

While U.S. magnet cities like Chicago, Las Vegas, New York and San Francisco are likely to see a larger share of business travel because of their convention infrastructure, today’s reductions are more about costs than on COVID-19 because companies see travel as a good-to-have, not a necessity.

For their part, business travelers seem ready to return to the circuit. According to a March study conducted for the American Hotel & Lodging Association (AHLA), “Nearly two-thirds of business travelers say the increased reliance on virtual work has become common during pandemics negatively affect both productivity (64%) and the workplace.culture (65%). ”

Additionally, that survey found that “80% of working Americans and 86% of business travelers say that face-to-face interaction is essential for maximizing company success.”

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