According to recent reports released by multiple outlets, business travel has yet to return to pre-pandemic levels. Despite travel increasing due to the receding pandemic, the travel levels have not recovered when compared to the pre-pandemic years.
From a report from Global Business Travel Association, while business travel spending rose to $697 billion in 2021, those figures still pale in comparison to 2019, when business travel spending was $1.4 trillion. The yearly decrease in travelers could possibly become a permanent fixture in business travel.
In the United States, among the people who traveled at least three times a year for work before the pandemic, two in five Americans are now expecting to never travel for business again. The decline in business travel is even more prominent across Europe, with over 50% of respondents saying they will never travel for business again. Even though there are declines in the United States and Europe, China, India, and Brazil are predicting more business travel in the future, according to a report by Morning Consultant.
Since the pandemic introduced zoom meetings and online conferences, the necessity for in-person interaction has become a factor in the decline of business travel. Those who traveled multiple times through the years for work now feel the trips are unnecessary due to the hybrid and online options available for meetings and events.
Another factor of the business travel decline is inflation and flight cuts. Inflation is currently at an all-time high, and airlines have been cutting costs. Canceled flights, pilot and staff shortages, and increased environmental concerns have caused traveling to become a nightmare. Companies and businesses are now being more selective with their business trips.
The decrease in business travel is expected to continue to decline until at least 2025.
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