Ahora leyendo:
The GBTA’s 4 conditions for business travel recovery
Toda la noticia 4 minutes read

The GBTA’s 4 conditions for business travel recovery

The Global Business Travel Association has released the results of its latest business travel index—the BTI Outlook—which provides an analysis of business travel in 2021 with projections for 2022 and beyond, including post-COVID-19 recovery forecasts.

Forecasts and Analysis Highlights
Global business travel activity has begun its rebound from the sharp downturn brought about by the COVID-19 pandemic. After declining 53.8 percent in 2020 to $661 billion, global expenditures are expected to have rebounded 14 percent in 2021 to $754 billion. This was more slowly than forecast in GBTA’s previous BTI Outlook report issued in February of this year.

Despite recovery setbacks in 2021, a year-over-year surge of 38 percent is expected in 2022 as recovery and pent-up demand kicks into a higher gear, bringing global business travel spending back to over $1 trillion.

Recovery will continue into 2023, with global spending rising 23 percent year-over-year as even more international and group travel comes back online.

By 2024, global business travel is forecast to have made a full recovery, ending the year at $1.48 trillion or just above the 2019 prepandemic spend of $1.4 trillion.

In 2025, the GBTA predicts global business travel growth will slow to 4.3 percent—just below the 10-year average growth rate of 5.1 percent coming into 2020—ending the year at a forecasted $1.5 trillion.

However, persistent COVID-related threats and disruptions, supply chain strains, labor shortages, rising inflation, increased costs and lagging recovery in Asian markets are just a few of the risks for continued on-target recovery, according to the group. Additionally, yet to be determined are the potential impacts of emerging factors including broad adoption of remote working models, long term cuts or elimination of business trips and travel volume, and the increased focus on sustainability practices and policies for business travel.

“Of any year we’ve issued the BTI Outlook forecast, this one was the most anticipated and it’s no surprise,” said GBTA CEO Suzanne Neufang. “The business travel industry recognizes there are factors, related to COVID-19 and beyond, that could impact the road ahead over the coming years. However, there is optimism overall as the industry, companies and travelers worldwide lean into recovery and the much-needed return to business travel.”

Headwinds
The business travel recovery that began in late 2020 hit a fair number of bumps in 2021. Pandemic surges, variant introductions, uneven vaccination rates and mounting supply chain challenges all took their toll on previously forecast growth expectations, the report showed.

North America—particularly the U.S.—led the recovery, rebounding 27 percent in 2021. Business travel markets in Latin America, Middle East and Africa and Asia-Pacific all picked up 15 percent to 20 percent growth in 2021.

European markets have lagged in 2021. Emerging Europe is expected to gain only 10 percent and for the region of Western Europe, business travel expenditures for 2021 are expected to fall 3.8 percent from 2020 levels. This stems from early year underperformance, but with recent resurgence, business travel demand in the region is set to outpace most other parts of the world, barring any COVID-related setbacks.

Recovery in Asia Pacific has been slower, due to lagging border reopenings and a high dependence on international business travel. China’s expected growth was downgraded last year due to challenges posed by financial and other issues, which could signal larger risks.

Business travel in Latin America is performing relatively better in terms of percentages (although volumes vary significantly across global regions), boosted by fewer government restrictions and travelers’ desire and confidence to return to business travel. However, rising public debt and interest rates, declining credit ratings, and lower vaccination rates could pose future threats for Latin American business travel.

Business travel recovery will also vary by industry. Professional and business services and real estate have been resilient to date, while wholesale trade has been challenged. Accommodation and food services, arts, entertainment and recreation, and retail trade, which were significantly impacted during the pandemic, are expected to recover sharply over the forecast period…

Compartir noticia:
Input your search keywords and press Enter.