Business travel industry braces for a post-pandemic new normal

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With business travel down 90%, by some tallies, companies are figuring out how to do without it. That's exactly what the travel industry fears most.

A partner account executive at a U.S. tech company, Contreras was used to traveling frequently for his employer. But nine months into the pandemic, he and thousands of others are working from home and dialing into video conferences instead of boarding planes.

Delta Air Lines Chief Executive Ed Bastian recently suggested business travel might settle into a “new normal” that is 10% to 20% lower than it used to be. At Southwest Airlines, CEO Gary Kelly said that although overall passenger revenue is down 70%, business travel — normally more than one-third of Southwest’s traffic — is off 90%.“I think that’s going to continue for a long time. I’m very confident it will recover and pass 2019 levels, I just don’t know when,” Kelly told the AP.

Polestar, an electric car brand jointly owned by Sweden’s Volvo and China’s Geely, has always tried to limit travel for environmental reasons. But the 14-day quarantine has restricted travel even further, said Kiki Liu, Polestar’s head of communications.

 

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