According to the World Travel & Tourism Council (WTTC), worldwide business travel spending is expected to increase by more than a quarter this year, reaching two-thirds of pre-pandemic levels by 2022.
‘Adapting to Endemic Covid-19: The Outlook for Business Travel,’ a major new WTTC report co-authored with McKinsey & Company, makes the forecast.
It is based on research, analysis, and in-depth interviews with tourism executives to help businesses prepare for post-pandemic corporate travel.
Covid-19 had a disproportionately negative impact on business travel, which has taken longer to recover.
Given the importance of business travel to many sectors of the global economy, it is critical that all stakeholders work together to find solutions to help it recover.
According to the latest analysis, the modest increase in business travel spending this year (up 26%) will be followed by a 34 percent increase in 2022.
However, this follows a 61% drop in business travel spending in 2020, as a result of extensive travel restrictions, with significant regional differences in the bounce back around the world.
Businesses could alter their revenue structures, expand their geographic focus, and improve digital services to speed up the recovery of business travel, according to the research.
The shared goal of reviving business travel will need continued collaboration and partnerships across the private and public sectors, as well as the fostering of new relationships.
“Business travel is starting to pick up. We expect to see two-thirds back by the end of 2022,” said WTTC’s chief executive, Julia Simpson.
“Business travel has been seriously hit but our research shows room for optimism with Asia Pacific and Middle East first off the starting blocks”.
Last year, the tourism industry lost about US$4.5 trillion in revenue, and over 62 million people lost their jobs.
Domestic visitor expenditure plummeted by 45 percent, while overseas visitor spending dropped by 69 percent, a record low.
– India’s new age travel digital media