Business Travel Demand Won’t Bounce Back In 2021, And Maybe Not For Years. That Will Be Devastating For Airlines.

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Business travel demand won’t bounce back in 2021, and maybe not for years. That will be devastating for airlines

In 2018, business travelers globally spent $1.4 trillion on airlines, hotels, ground transportation, food and other travel services. Half of that was spent in just two countries, the United States and China, according to the World Travel & Tourism Council. About 20 percent of the remaining global business travel spending occurred in Europe.

When the Institute of Travel Management recently asked corporate travel managers around the world what they expect their companies’ travel plans and budgets to be for 2021, 38% of them said their businesses’ travel volumes will be down by 25% to 50% vs. 2019, the last “normal” year. Another 36% were even more pessimistic, saying their corporate travel would fall 50% to 70% from 2019.

Castle, who is based in in the United Kingdom, said that some surveys he has seen in the last couple of months “suggest business travel could reduce by 20% next year against 2019.” And he was quick to add: “I would take that number. The economic background will be challenging,” implying that the likely drop in demand will be worse.

Southwest is the only one of the big four U.S. carriers not to lay off workers this year. Delta, American and United, along with the rest of the nation’s airlines have eliminated well over 100,000 workers since the pandemic began. Late Tuesday afternoon, President Trump, who has accused Pelosi of not negotiating in good faith in an effort to keep him from claiming a political win just prior to the election, instructed Mnuchin to postpone further stimulus talks until after the Nov. 3 election. Later Tuesday evening, in a tweet, the President urged House and Senate leaders to immediately pass a stand-alone airline relief bill with $25 billion in aid.

UBS’s Castle, in his talk at the ITM conference, also noted that with more than half of corporate workers in the U.K. – and presumably similar or even large percentages of them elsewhere – now working from home, there simply is no place where business travelers comfortably can go to call on their customers or clients. The offices where they used to make sales or service calls are now mostly or entirely empty.

 

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Seriously, Forbes. THIS is your photo to reflect business travel is down?!

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There will likely be a bell curve distribution. Once border restrictions drop those itching to go will go. The bulk of people will likely travel once we have relatively sure fire treatments/vaccines. The final group will wait beyond that for safe measure.

I doubt that. It's an highly pessimistic pov. We already have started traveling!

Dark truth

Wrong. As soon as people feel safe gettting on a plane it will explode. People is dying for traveling and leave home. See latest DHS numbers.

Good. Less pollution. Value our planet over airline profits.

Coming back next year, ppl are ready to travel again after hibernation.

Honestly why wouldn’t it bounce back after a vaccine? People really enjoy business travels as it makes them feel more important than having a career on zoom.

Karma is real, I’m so grateful for it

Until a vaccine is found .... not traveling and yes zoom And more family time for this guy!

Good. Better for decreasing air pollution.

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