Business & Investment

Business trips are struggling to recover

In many economies, the big question is when can we safely return to pre-pandemic spending patterns. For business trips, it looks like this: Who wants to

Corporate chief OK The effectiveness of video conferencing tools — and the money they save. Many also promise to reduce carbon emissions. The conclusion may be bad news for anyone looking forward to resuming the Road Warrior lifestyle.

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The Global Business Travel Association estimates that global spending on commercial travel will not recover to its pre-pandemic peak of $ 1.4 trillion by 2025. In the United States, only 27% of companies expect to spend, according to the latest Census Bureau survey of SMEs. Money for the next 6 months trip.

“Results of the conference held at Zoom vs Richard Curtin, head of consumer research at the University of Michigan, said in an interview. “It will be difficult to justify the costs that were once supported.”

“I found a new way”

According to a survey by management consulting firm Oliver Wyman, most business travelers believe that they can maintain existing business relationships and develop new business relationships through telephone conferences.

After the 9/11 terrorist attacks and the 2008 financial crisis, business trips recovered, both leading to the prediction of a long-term reversal.

However, GBTA estimates that the impact of a pandemic on the industry is about 10 times more severe than any of these episodes. And this time, companies may have found a better alternative — a theme that surfaced with a recent call for revenue.

Brian Olsavsky, Chief Financial Officer of Amazon.com, said on February 2, “We were able to save about $ 1 billion in shipping costs. Our sales team has a new way to reach our customers. I found it. “

According to Business Travel News, in 2019, Amazon ranked second after Deloitte in the 100 largest corporate travel programs measured on flights booked in the United States. Semi-public institutions such as the World Bank and the International Monetary Fund are also on the list, with The Church of Jesus Christ of Latter-day Saints ranked 44th.

The broader travel industry expects to rise in the short term due to stagnant demand for leisure travel, as the deployment of vaccines can lead to vacationers. feel More comfortable.

“Our expectations that business trips will lag consumers’ travels,” said Jeff Campbell, CFO of American Express Co, in a statement.

As with other pandemic business trends, such as the shift from office to telecommuting, the idea is that changes in travel habits will be temporary.

The debate may not be resolved until the health emergency is over.

Stephen Berman, CEO of toy maker Jakks Pacific Inc, said in a statement that the company wouldn’t give up the way it worked, even if the return to business was delayed. “When a salesperson gets a client on a personal visit, many people travel, as opposed to someone who just tried to get a client on Zoom.”

© 2021 Bloomberg

Business trips are struggling to recover

https://www.moneyweb.co.za/news/international/business-trips-struggle-to-recover/ Business trips are struggling to recover

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