Per a new survey, more than half of large-company executives believe that curtailing business travel will result in short-term savings but long-term revenue losses. The study is part of the Quarterly Business Travel Tracker, which was launched in April by the US Travel Association, J.D. Power, and Tourism Economics.
Despite agreeing that limiting business travel will affect long-term sales, more than two-thirds of executives expect their company to spend less on business travel in the coming six months than it did in the previous six months. Furthermore, half of businesses still have policies in place that limit work travel.
US Travel has encouraged these organizations to prioritize a restoration to normal business travel operations. Companies which restrict or curtail business-travel stand a great risk of negatively impacting their profits, in the coming months. Quarterly Business Travel Index (BTI) predicts that business travel activity will rise soon.
Business Travel Index anticipates an increase to 84 in Q3, up from 81 in Q2 (2019=100). The business conditions leading index, which evaluates the business climate for travel, shows moderate improvement, climbing to 103 in Q3 from 102 in Q2.
This near-term favorable prognosis is also consistent with U.S. Travel’s most recent prediction, which anticipates robust growth in domestic business travel in 2022.
U.S. Travel is lobbying for government initiatives to mitigate these vulnerabilities and hasten the recovery of the corporate travel sector. U.S. Travel recently asked Treasury Secretary Janet Yellen for help on a tax extenders plan that includes a temporary reinstatement of the entertainment business cost deduction and an extension of full expensing for business meals.