Business Travel rebounds as execs choose (Real) face time over Zoom

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Companies are reporting more trips, proving doomsayers from the pandemic’s darkest days wrong.

That will be key to reviving the airlines. Corporate clients typically deliver bigger returns than those packed in coach, spending more than $1 trillion on travel in 2019, according to the World Travel & Tourism Council. Amex GBT’s business has rebounded to 61% of its pre-pandemic level from just 25% at the peak of the omicron outbreak.

While it remains to be seen whether the recovery can be sustained — executives may ultimately take fewer business trips than previously once the initial euphoria of a return to travel wears off — the pace of the rebound is shoring up confidence at airlines as they deploy fleets and map out their post-pandemic networks. The Bloomberg World Airlines Index has climbed about 50% from a May 2020 low.

The picture isn’t uniform. The rebound is anaemic in China, which is still locking down entire cities in a bid to stamp out Covid-19, and Hong Kong, where foreign visitors must quarantine on arrival. Some in the business say there’s bound to be a degree of retrenchment after two years of relative success with virtual get-togethers.

 

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