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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Fake news! Once the vaccine is out there, business travel’s gonna be bigger than ever before! Now that we’re used to working from home, we came to the conclusion that we can do the same job from everywhere, so let’s travel to Bali, Thailand, Singapore, etc..

Because of the Coronavirus this year I will not be able to travel .. Before I could not do it but due to lack of money ...

Stupid business model, economy is going to rebalance. At least that’s what textbooks say, so why do you cry?

Then those airlines should pull themselves up by their bootstraps. Not that hard. Anybody can do it.

It will, getoverit COVID19 is too contagious Once all US citizens experience loss they will not travel out of their ComfortZone

Thanks to the panic porn morons pushing the fear mongering.

EndSARS

They are going to have to get over it.

And for people like me who happen to love travelling, especially for work.

EndSARS

Yes but it means I might actually get my upgrades.

So you got to ask yourself what’s good with another 25 billion do? They’re not going to come back fast.

Replace the seats.. why so worried..

Yet someone's in Tulum every other weekend 🤔

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