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Business travel may not return to pre-COVID levels until some time in 2026, two years later than previously forecast, according to a study by the Global Business Travel Association (GBTA).
A slowing global economy and geopolitical uncertainty surrounding the Ukraine war and the U.S.-Chinese tensions over Taiwan are making companies cautious, CNBC reported.
Also, inflation looms large; the GBTA estimates prices across the economy will continue to rise through next year.
Still, spending by business travelers worldwide will grow by 34 percent this year to $933 billion, the GBTA estimates.
However, that growth will leave the industry still short of the $1.9 trillion it generated in 2019, CNBC noted.
Although hotels’ business-related revenues were $92.36 per available room in July, compared to $88.05 during the same month in 2019, inflation has eaten all of those gains and more.
Occupancy was 63 percent, compared to 67 percent in 2019.
Business travel spending in the U.S. will grow by 42 percent overall this year, reaching $213.4 billion, the GBTA predicted.
TREND FORECAST: In Trends Journal articles including “Bid Farewell to the Business Travel Economy” (29 Sep 2020) and “Europe’s Banks Permanently Slash Business Travel” (4 May 2021), among others, we have long forecast that business travel will never return to pre-COVID War volumes.
Inflation and higher interest rates are squeezing companies’ margins; businesses will do what they can to save money.
Having become comfortable, if not entirely happy, with Zooming and teleconferencing during the COVID War, bosses now see their positive impact on the bottom line and will make remote contact, not travel, the new normal.