According to a travel data company, flight bookings for international business travel this autumn are approaching 2019 levels, which is a sign of recovery. However, climate concerns and economic clouds could dampen demand for business travel.
In general, business travel has trailed behind leisure travel in the airlines’ COVID-19 recovery. The U.S. is in a “business recession,” according to United Airlines CEO Scott Kirby, and a recovery in business travel will take more time.
However, according to statistics from travel analytics company ForwardKeys expected to be released on Wednesday, business reservations for the period from September to November are only 10% behind 2019 levels, which is the greatest performance since that year.
According to Olivier Ponti, vice president of insights at ForwardKeys, the recovery of all air travel and the lifting of pandemic-related limitations have made it simpler to schedule business trips. The information is based on reservations for significant international airlines compared to the same time period in 2019.
While the Global Business Travel Association (GBTA) anticipates a complete sector recovery in mid-2026, segments like hotels are already noticing signs of rising demand.
Bill Hornbuckle, CEO of MGM Resorts International, anticipates record future reservations between now and November.
When you consider future holdings, the convention crowd is “stronger than it’s ever been,” Hornbuckle said on Tuesday at the NYU International Hospitality Industry Investment Conference.
Small and medium-sized businesses (SMEs) are traveling more frequently than major firms, according to both airlines and hotels.
Christopher Nassetta, CEO of Hilton Worldwide Holdings, said on Monday at the NYU conference that 85% to 90% of Hilton’s corporate reservations come from SMEs, up from 80% prior to the pandemic.
With four out of ten European and a third of American businesses stating that they must cut back on employee travel by more than 20% in order to fulfil 2030 sustainability targets, climate concerns are predicted to have a negative impact on corporate travel gains.
According to research being released on June 13, more than a third of businesses surveyed by the GBTA Foundation are either buying or anticipate to buy less-polluting alternative fuel or carbon credits by 2025 to offset employees’ travel.
Due to the fact that they only serve to offset rather than to lower actual airline emissions, carbon credits that assist environmental projects have come under fire. However, as long as they benefit worthwhile causes, some environmental groups are okay with their use.
Delphine Millot, a sustainability executive at GBTA, said, “I think we cannot discard any of the options.”
Source: theprint