According to the World Travel & Tourism Council, global business travel is anticipated to recover to two-thirds of pre-pandemic levels by the end of next year, with Asia and the Middle East leading the way after being disproportionately affected by the Covid-19 problem.
While the sector will rebound, the recovery will be unequal, making public-private collaborations increasingly more vital in the months and years ahead, according to a paper co-authored by the WTTC and McKinsey.
“Business travel is beginning to increase. We anticipate seeing two-thirds of the population return by the end of 2022 “The WTTC’s CEO and President, Julia Simpson, stated.
“Business travel has taken a knock, but our analysis suggests that there is the reason for hope, with the Asia Pacific and the Middle East leading the way.”
The Covid-19 outbreak had a particularly negative impact on business travel, as organizations cut their expenditures and resorted to online meetings using video-conferencing technology like Zoom and Microsoft Teams.
Business travel demand has recovered more slowly than leisure travel demand, and company policies continue to impact business travel demand following national travel limitations imposed by governments.
Business travel is a significant contributor to global economic growth. Corporate travel is also very crucial for airlines and high-end hotels since it accounts for a significant portion of their income.
In the future, business travel recovery will most likely differ by location, country, and sector. Per the World Travel and Tourism Council, business travel in Asia may rebound quicker than in many European and American markets, with recovery occurring in stages depending on major industrial sectors.
According to the survey, industries such as manufacturing, pharmaceuticals, and construction are early adopters of a return to business travel based on expenditure trends over the last year.
“Given the significant disruption to the business travel segment, and its uneven recovery to date, business travel recovery will likely be bumpy,” the WTTC said.