Stats: Business Travel Recovery Keeps Gaining Traction

Data and insights from Global Business Travel Association's (GBTA) February COVID-19 recovery poll suggest that business travel is continuing to turn the corner on COVID-19, especially as concern from Omicron begins to wane and global travel restrictions loosen. Also on the rise are business travel volume expectations for the year ahead, as well as employees’ willingness to travel and to blend business travel with leisure time. Responding companies also expect to be heading back to the office, at least a few days a week, and many of them are facing headwinds in hiring and retaining qualified workers.

One of the highlights of the poll was that optimism is returning in a big way. Three in four (78 percent) supplier and travel management company (TMC) professionals surveyed currently feel optimistic about the business travel industry’s path to recovery, up from 54 percent who reported being optimistic in the January poll. The poll also highlighted that the percentage of respondents who report non-essential domestic business travel is sometimes or usually allowed increased to 73 percent in February, compared to 66 percent in January.

Four in five (82 percent) poll respondents feel their employees are “willing” or “very willing” to travel for business in the current environment, compared to 64 percent in the January poll. Among those surveyed, most (68 percent) anticipate they will want to travel about the same amount (55 percent) or more (13 percent) as they did before the pandemic in the future. An additional third (30 percent) say they want to travel “somewhat or much less” than they did before the pandemic.

The poll also shows that bookings are improving incrementally. On an average, travel buyers say their company’s business travel bookings are at 33 percent of their pre-pandemic level, while travel suppliers report their business travel bookings are back to 42 percent compared to pre-pandemic levels. 

With regards to Omicron, most professionals polled (79 percent) think the worst is behind us; however, expectations vary for how quickly business travel will resume. Half (50 percent) expect business travel to return more slowly over the next three months, whereas one in three (29 percent) expect it will pick up quickly. 

When it comes to entry requirements for international visitors, half (46 percent) feel current restrictions are “just right” and one-third (34 percent) feel requirements are either “too strict” or “much too strict.” Support for proof of vaccination is strong (76 percent support or strongly support), but much lower for mandated quarantines (67 percent opposed or very opposed) and travel bans (62 percent opposed or very opposed).

The recent increase in the travel restrictions being eased in countries and regions around the world comes as good news for many. Of those polled, 79 percent report government travel restrictions have greatly (23 percent) or somewhat (56 percent) disrupted their business operations. Half (51 percent) say it would take three months or longer for their company’s business operations to return to normal after travel restrictions are lifted.

There is an emphasis on "blendid travel" as well. Travel managers were asked if they think their employees are interested in extending work trips to include a leisure component (also called “bleisure” travel) compared to before the pandemic. Most (82 percent) think their employees are equally interested (53 percent) or “more/much more” interested (29 percent) in combining business travel with leisure.

As far as returning back to work, over half of respondents (56 percent) expect their company will require most employees to report to the office, at least some days. That said, 15 percent expect their company to prefer employees report to the office, but not require it, and might consider offering incentives if they do (e.g., free lunch or other benefits). And 19 percent have no preference if employees work from the office or from home.

A majority of suppliers agree it is difficult to hire qualified employees in the current environment (68 percent) and retain qualified employees (58 percent). Two-thirds (67 percent) agree that additional pay or incentives are required to hire/retain qualified workers. Additionally, suppliers and travel management companies (TMCs) report their staff size is either “somewhat” or “much smaller” (66 percent) than before the pandemic.

Source: GBTA

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