Business travel is vital for the organization’s progress and the nation’s economy. It also contributes significantly to the company’s operating expenditure after salaries. Despite a long break, business travel is resuming as businesses across all verticals realize that face-to-face interactions are more productive than virtual meetings through Zoom or videoconferencing.
According to reliable business travel statistics, the $1.28 trillion worth of the travel industry came to a grinding halt because of the pandemic-associated travel restrictions. There are positive indications that business travel is bouncing back, though the recovery may require several years to reach the pre-pandemic levels.
How the Coronavirus pandemic affected business travel
The COVID-19 pandemic was a severe roadblock for business travel because of long spells of lockdowns and global travel restrictions. The following are a few business travel statistics showing how the pandemic impacted business travel.
- Corporate travel suffered unprecedented losses of up to 10 times more than the 2008 recession and after the 9/11 attack.
- There was over a 65 percent reduction in international travel, marking the lowest level of mobility since the beginning of air travel in the year 1958, according to reliable business air travel statistics.
- Despite a 90 percent drop in business travel during the pandemic, several organizations could restore business travel to 80 percent of the pre-COVID-19 level.
- There was a 52 percent dip in hotel occupancy rates in 2020.
- Travel spending saw a drop of 90 percent over the corresponding pre-pandemic period.
According to the IATA research and other business air travel statistics, airlines require five years to restore regular services following a major setback, such as the Coronavirus pandemic.
Suggested Read: Basic Guidelines For International Business Travelers
Business travel expectations and projections
Despite a few setbacks, like the emergence of omicron and other variants, corporate travel is making a strong comeback in 2022. A few uncertainties, like the ongoing conflict because of the Russian invasion of Ukraine, may play spoilsport, but the overall outlook is positive. Several countries dropped travel restrictions, including mandatory Vaccine certificates and the latest COVID-19 test report.
1. A cautious return of business travel
The optimism of sound business travel recovery at the beginning of 2022 took a hit because of new variants like delta and omicron. Travel managers had to reconsider the travel plans of employees. The percentage of people expecting a robust business travel recovery by the end of 2022 dropped to just 17 percent, as per a few business travel statistics.
Consistent fall in new cases of Coronavirus infections is boosting the return to regular business travel. More employees are ready to undertake business trips again because concerns about illnesses are far less than earlier. According to business travel spending statistics, travel managers expect travel expenditures to rise from 2022 and beyond.
2. Impact of work-from-home
Work-from-home is the most remarkable legacy of the Coronavirus pandemic. Home-based work may become a crucial roadblock to the return of business travel, as most employees prefer remote working. However, sales and project assignments require physical presence for maximum effectiveness. Employees working remotely or from home will need to visit headquarters periodically.
As more organizations recall employees to the office by ending the WFH work pattern, there is a faster return to normal levels of business travel. These companies are planning a higher travel expenditure. However, according to business travel statistics, over 30 percent of companies hoped to achieve a complete recovery of business travel by the end of the year 2023.
3. Overseas business travel to grow steadily
The pre-pandemic contribution of international trips to overall business travel was 25 percent. Several organizations are skeptical about the recovery of overseas business travel to the pre-pandemic level soon. The prospect of escalation of the Ukraine-Russia conflict further dampens the hopes of business travel recovery across borders.
Several airline business travel statistics show that the obstacles for international business are more than domestic travel because it involves strict border regulations that are likely to change anytime. There is a probability of abrupt flight cancellations, delays, and getting stuck at unfamiliar locations. However, as more countries lift border restrictions, international business travel may resume steadily.
Main drivers of business travel
Whether business travel is within the country or overseas, sales visits contribute the most to the total number of business trips, according to several business travel statistics. Sales visits will boost the return of business travel to the pre-pandemic level. The next in the line are leadership meetings, project visits, business conferences, and trade shows. Trade events will be important drivers of domestic business travel, though these will not contribute to overseas business trips to a large extent.
Conclusion
Though the exact projection about business travel’s recovery to pre-pandemic levels is challenging because of several factors, there is definite progress in domestic travel. Most companies resumed domestic business trips much earlier than the opening up of international borders.
Travel managers express the need for better solutions to comply with the duty of care and an efficient platform to book or cancel travel without hassles. They will have to book travel at short notice, impacting the ability to negotiate prices. Some business travel statistics reveal there is a strong probability of a rise in airfare by almost 54 percent. Companies will rely more on travel management platforms that ensure duty of care and cost efficiency. Paxes is a cost-effective SaaS-based travel management solution, offering end-to-end facilities to simplify business travel. It provides duty-of-care features through employee tracking and round-the-clock access to emergency support.
Business Travel Statistics FAQs
What are the essential steps for post-COVID travel?
Completing COVID-specific documentation before reaching the destination, providing a COVID negative report, and vaccination proof are essential requirements for post-COVID travel. One may have to undergo quarantine on arrival.
How will businesses control the rising costs of business travel?
The most immediate measure to reduce travel expenditure is to reduce the number of business trips.
How will sustainability impact business travel?
Companies will limit business travel to mitigate their carbon footprint and adopt policies to replace face-to-face meetings with virtual meetings. The travel managers will have to encourage employees to club more destinations to reduce the number of trips to individual locations.
What will be a new trend in business travel?
More employees will opt for bleisure travel in 2022 and beyond.
What factors boost business travel recovery?
Extensive vaccine rollout, easing of border restrictions, and resumption of office work are some factors boosting business travel recovery.
