Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Business travel has disappeared. Will it ever come back?

Business travel has disappeared. Will it ever come back?

Book tickets. Schedule meetings. Obsess over your presentation. Pack a carry-on. Rush to the airport. Check out the lounge. Priority boarding. Take off. Land. Get to the hotel. Meet clients. Seal the deal. Fly home. Repeat.

For countless executives and salespeople, business trips have been a bedrock of corporate life — loathed by some, loved by others but accepted by all as a necessity (sweetened by millions of frequent flyer miles). Employees needed to fly to meet clients, drum up new business and grab some face time with the boss at headquarters.

Then came the coronavirus pandemic, which grounded travelers and forced many companies to find news ways of doing things. Zoom replaced face to face meetings, even if there is something awkward about video chats. Phone calls filled the gaps. Clients stayed clients, deals got done and revenue rolled in.

Now, with coronavirus restrictions easing in many countries, the question is how quickly business travel will rebound, and whether the pandemic and efforts to address the accelerating climate crisis will prevent the lucrative sector from ever making a complete recovery.

Road warriors will themselves play a crucial role in determining whether business class is full or mostly empty, as they negotiate a return to corporate life after more than a year working from home. Some — or many — could balk at missing out on date night or their kids' football game.

"For a lot of people, frequent business travel has become more of a burden than a perk," said Scott Cohen, a professor at the University of Surrey in England who studies business travel. There is increasing recognition that frequent work trips can negatively effect health and personal relationships, he added.

A weak recovery in business travel would be disastrous for airlines, which have already seen their finances stretched to breaking point by the pandemic.

While corporate travelers represent just 12% of passengers, on some flights they can generate as much as 75% of profit, according to PwC.

"Business travelers often book last-minute fares at significant markups — in the past, a road warrior may have paid $1,000 one day before departure for the same seat a leisure traveler bought for $100 two months back," Zach Honig, editor-at-large of The Points Guy, explained via email.

The International Air Transport Association, which represents 290 airlines around the world, expects business travel to bounce back more slowly than vacations because companies reduced travel budgets during the pandemic and online conferencing will replace some meetings.

In the United Kingdom, where the government eased restrictions Monday on international travel, airline bosses acknowledged the challenges facing business travel but said they still expect a full recovery.

"We've been clear that [business travel] would recover maybe at a slower pace," British Airways CEO Sean Doyle told BBC Radio. "But people will get back to doing business ... I think people want to come here, visit and talk about business opportunities, and they like doing business face to face. So I am confident that that segment will recover."

Suzanne Neufang, CEO of the Global Business Travel Association, said that business travel was "declared dead" following the 2008 financial crisis but eventually made a full recovery despite advances in technology that made video conferencing easier.

"There is this propensity for business people and government officials and politicians and others to need to get in front of their constituents," she said.

Why this recovery will look different


But there is no guarantee that history will repeat itself.

Several major banks have announced they will sharply reduce business travel to help address the climate crisis. In February, Lloyds Banking Group (LLDTF) said it would slash travel carbon emissions by more than 50% from their level before the pandemic. Standard Chartered (SCBFF), which is headquartered in London but does most of its business in Asia, Africa and the Middle East, forecasts that travel will fall by a third.

ABN Amro (AAVMY) is directing its employees to travel by public transportation, and use only trains when moving between its locations in Europe. The Dutch bank is aiming to reduce business air travel by 50% by 2025 compared to 2017 levels.

The trajectory of the pandemic is another factor. The longer coronavirus remains a threat, the more business will be forced to embrace alternatives. The virus continues to rage in India, and a travel bubble between Hong Kong and Singapore has just been delayed for a second time because of rising cases. The World
Economic Forum, which usually holds its annual meeting in Davos, Switzerland, on Monday abandoned plans to host a gathering in August in Singapore.

If there is to be a sea change in the way companies think about business travel, it may come in the types of trips that are deemed essential. Servicing existing clients? That can be done on Zoom, while finalizing a mega deal with foreign clients will be deemed to require a personal touch.

"It's that more glamorous [business travel] that I think actually will survive," said Cohen. "That more mundane segment where the relationship is already established ... are the ones that I think to an extent will die. Businesses will [say], you know, that trip's not that important. That deal's already been done."

That could erode some of the ecosystem that's sprung up around business travel. Hotels, airlines and rental car companies, for example, offer points and status levels that encourage repeat business among business travelers. But for road warriors, less travel means fewer perks.

"While there can be plenty of exciting moments, many aspects of work travel aren't as glamorous as you might think — being able to work toward a free vacation can certainly help take the sting out of spending so much in economy airplane seats and at cookie-cutter hotels instead of at home," said Honig.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
High-Stakes Trump-Putin Summit on Ukraine Underway in Alaska
The World Economic Forum has cleared Klaus Schwab of “material wrongdoing” after a law firm conducted a review into potential misconduct of the institution’s founder
A Computer That Listens, Sees, and Acts: What to Expect from Windows 12
Bitcoin hits $123,000
Southwest Airlines Apologizes After 'Accidentally Forgetting' Two Blind Passengers at New Orleans Airport and Faces Criticism Over Poor Service for Passengers with Disabilities
United States Sells Luxury Yacht Amadea, Valued at Approximately $325 Million, in First Sale of a Seized Russian Yacht Since the Invasion of Ukraine
Russian Forces Advance on Donetsk Front, Cutting Key Supply Routes Near Pokrovsk
It’s Not the Algorithm: New Study Claims Social Networks Are Fundamentally Broken
Sixty-Year-Old Claims: “My Biological Age Is Twenty-One.” Want the Same? Remember the Name Spermidine
Saudi Arabia accelerates renewables to curb domestic oil use
The Billion-Dollar Inheritance and the Death on the Railway Tracks: The Scandal Shaking Europe
World’s Cleanest Countries 2025 Ranked by Air, Water, Waste, and Hygiene Standards
Denmark Revives EU ‘Chat Control’ Proposal for Encrypted Message Scanning
Perplexity makes unsolicited $34.5 billion all-cash offer for Google’s Chrome browser
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Taylor Swift announces 12th studio album on Travis Kelce’s podcast after high-profile year together
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Sam Altman challenges Elon Musk with plans for Neuralink rival
Trump and Putin Meeting: Focus on Listening and Communication
Instagram Released a New Feature – and Sent Users Into a Panic
China Accuses: Nvidia Chips Are U.S. Espionage Tools
Mercedes’ CEO Is Killing Germany’s Auto Legacy
US Postal Service Targets Unregulated Vape Distributors in Crackdown
RFK Jr. Announces HHS Investigation into Big Pharma Incentives to Doctors
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Security flaws in a carmaker’s web portal let one hacker remotely unlock cars from anywhere
Denmark Pushes for Child Sexual Abuse Scanning Bill in EU, Could Be Adopted by October 2025
Street justice isn’t pretty but how else do you deal with this kind of insanity? Sometimes someone needs to standup and say something
Armenia and Azerbaijan sign U.S.-brokered accord at White House outlining transit link via southern Armenia
Barcelona Resolves Captaincy Issue with Marc-André ter Stegen
US Justice Department Seeks Release of Epstein and Maxwell Grand Jury Exhibits Amid Legal and Victim Challenges
Spain Scraps F-35 Jet Deal as Trump Pushes for More NATO Spending
France Faces Largest Wildfire Since 1949 as Blazes Rage Across Aude
French Senate Report Alleges State Cover‑Up in Perrier ‘Natural Mineral Water’ Scandal
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
OpenAI Launches GPT‑5, Its Most Advanced AI Model Yet
Brazilian President Lula says he’ll contact the leaders of BRICS states to propose a unified response to U.S. tariffs
US envoy Steve Witkoff arrived in Moscow to seek a breakthrough in the Ukraine war ahead of President Trump’s peace deadline
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Britain's Online Safety Law Sparks Outcry Over Privacy, Free Speech, and Mass Surveillance
Nine people have been hospitalized and dozens of salmonella cases have been reported after an outbreak of infections linked to certain brands of pistachios and pistachio-containing products, according to the Public Health Agency of Canada
Karol Nawrocki Inaugurated as Poland’s President, Setting Stage for Clash with Tusk Government
US Charges Two Chinese Nationals for Illegal Nvidia AI Chip Exports
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
U.S. Tariff Policy Triggers Market Volatility Amid Growing Global Trade Tensions
Tariffs, AI, and the Shifting U.S. Macro Landscape: Navigating a New Economic Regime
German Finance Minister Criticizes Trump’s Attacks on Institutions
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
×