Why business travel's recovery may take even longer than expected - Jacksonville Business Journal

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Why business travel's recovery may take even longer than expected

Some of the business travel spending that was derailed by the Covid-10 pandemic may never come back,About 40% of business travelers who took a trip at least three times a year before the pandemic expect to never travel for business again. Additionally, the share of adults who planned to take a trip for work this year dropped about 10 percentage points across all categories between February and May, according to the study.

Southwest Airlines Co. said in an earnings call at the end of July that while its total revenues increased, business revenue was still down about 24%. And while the airline expects business travel to improve, it will still be down compared to before the pandemic.according to an August report by the Global Business Travel Association

Overall, total global spending on business travel reached $697 billion in 2021, about 5.5% above the pandemic-era low recorded in 2020. But the Omicron variant short-circuited the recovery in late 2021 and early 2022. The GBTA expected 2022 to show spending of roughly $933 billion, or roughly 65% of pre-pandemic levels.85% of business travelers said they definitely need to travel to accomplish their business goals.

 

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