Best guess on when business travel will recover? It could be years

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NEW YORK (NYTIMES) - While business travel evaporated in a flash when the coronavirus hit, it may take two to three years for it to fully recover - far longer than many travel experts initially predicted.. Read more at straitstimes.com.

NEW YORK - While business travel evaporated in a flash when the coronavirus hit, it may take two to three years for it to fully recover - far longer than many travel experts initially predicted.

As for hotels, business travelers generate about 70 per cent of Marriott's and Hilton's global revenues, said Robin Farley, lodging analyst at UBS. She predicted that the common measure of hotels' financial health, revenue per available room, would not return to 2019 levels until 2023 or 2024. The car rental industry is perhaps the brightest spot among travel suppliers. The average length of business travel rentals at Enterprise, National and Alamo has risen recently, said Donald Moore, senior vice president of business rental sales and global corporate accounts at Enterprise Holdings, the brands' parent company.

Among the challenges with resuming business travel are the varying guidelines put out by airports and airlines. For companies to be comfortable sending employees on business trips,"there have to be somewhat consistent, clearly communicated guidelines," said Mike Janssen, global chief operating officer and global chief commercial officer of BCD Travel, a travel management company.

"The threat of litigation will potentially prevent some companies - even ones that are going to great lengths to exercise caution and safety protocols - from restarting their travel programs as quickly as they'd like to," he said.

 

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