December 1, 2022

Business Travel Continues Slow Recovery

Despite continuing to report a general desire and optimism for the return to organization travel, business travel market belief continues to waver, due to continuous uncertainty around the Delta version and other variations.

NB: This is a short article from GBTA

Nevertheless, indications reveal companies and their business travel supervisors may be looking at brand-new focus areas and methods of working for their company travel program. This is according to our latest survey.

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This September poll is the 23rd in a series tracking the pulse of GBTAs subscription of worldwide travel buyers, suppliers and other stakeholders on how the business travel market overall is navigating the go back to take a trip, post pandemic.

” Its not a surprise that for a second successive month, travel market buyers and suppliers continue to report continuous caution around variants and travel limitations as crucial elements impacting what would otherwise be a more faster go back to service travel. The current news regarding the opening of the US to UK and EU service tourists will ideally minimize some of the issues and provide a needed increase to business travel ecosystem through year-end. Furthermore, were seeing early indications of new ways of thinking concerning corporate travel programs including the value of closer partnership with corporate travel supervisors and take a trip management companies,” said Suzanne Neufang, CEO, GBTA.

Here are some highlights from the September GBTA survey:

You can see information and essential highlights from GBTAs September 2021 poll in addition to the whole poll series here.

Of the GBTA buyer members and contacts whose business “never ever” or “seldom” allow non-essential company travel, eight in 10 report their business is likely to delay the resumption of non-essential domestic (81%) and worldwide (80%) organization travel due to the Delta variant/ other variants.BUSINESS TRAVELERS ARE STILL READY TO GO. Even with service travel down from years prior due to COVID-19, more than one-third (37%) of travel purchasers and procurement specialists state they are “more” or “much more” reliant now on their travel management business (TMC) than they were prior to the pandemic.BUSINESS TRAVELS VALUE. Amongst those who report their company is presently re-evaluating, leading areas include increased focus on traveler wellness and safety (56%); increased usage of hybrid conferences (integrated virtual and in-person) (52%); Reduced travel for internal cooperation conferences (49%) and reduction in total travel costs (48%).

INTERNATIONAL BUSINESS TRAVEL REMAINS STALLED, DOMESTIC STAYS CONSISTENT. In line with August poll results, participants in September report non-essential domestic organization travel (61%) is more regularly permitted than non-essential global organization travel (34%). In addition, the Delta variant/ other versions continue to postpone the resumption of non-essential domestic and international organization travel. Of the GBTA purchaser members and contacts whose business “never ever” or “hardly ever” permit non-essential service travel, 8 in 10 report their company is most likely to delay the resumption of non-essential domestic (81%) and international (80%) organization travel due to the Delta variant/ other variants.BUSINESS TRAVELERS ARE STILL READY TO GO. Consistent throughout the past three months, GBTA purchasers feel their employees are “willing” or “very prepared” to travel for business in the current environment, as reported by 68% in the September poll.FOR BETTER, FOR WORSE. One in 5 (22%) travel supplier and travel management company respondents report they feel more optimistic compared to a month back, versus 15% in the August poll. Nevertheless, one in four (27%) say they feel more cynical about the markets path to healing, compared to 39% in the August survey. Practically half (51%) say they feel the same.WHO TESTS? WHO PAYS? Many companies report they do not require COVID-19 tests prior to or after workers travel for organization, to participate in a meeting or event, or go back to the workplace, no matter the staff members vaccination status. In the U.S., 73% reported not requiring testing. In Europe 67% do not require screening and 39% in Canada, although its essential to consider nationwide healthcare policies versus business policies when considering screening requirements in various nations. Of those who note their business needs COVID-19 tests, a lot of (60%) state their company fully compensates or pays for the cost.MORE RESTRICTIONS DUE TO DELTA? Constant with August findings, few participants say their business has actually introduced new restrictions on non-essential business travel at this point on non-essential company travel due to the Delta/other variations. Half (51%) report their company is unlikely to introduce new restrictions, and only one in 4 (23%) report their business has actually presented new restrictions.CHANGING TIMES, CHANGING ROLE. In September, 6 in 10 travel (66%) report due to the pandemic, their functions as buyers and procurement professionals at companies has altered “somewhat” to “a lot.” This includes: collaborating more carefully with other departments (71%) such as Human Resources, Finance, Legal, Risk Management or other teamselevating duty of care as a greater top priority in the business (70%) developing new techniques or revisions to present business travel guidelines (69%) serving on new cross-department committees or task forces (44%) integrating or focusing on more sustainability policies in the companys travel program (40%). When it came to sustainability policies, participants based in Europe (55%) are more likely than in North America (35%) to state this focus is now more part of their function than before the pandemic.

” Its not a surprise that for a second successive month, travel market buyers and providers continue to report continuous caution around versions and travel limitations as key factors impacting what would otherwise be a more faster return to organization travel. In addition, were seeing early indications of brand-new methods of thinking coming to business travel programs including the value of closer partnership with corporate travel supervisors and travel management companies,” stated Suzanne Neufang, CEO, GBTA.

CONTACTING BUSINESS TRAVEL EXPERTISE. Even with service travel below years prior due to COVID-19, more than one-third (37%) of travel purchasers and procurement experts say they are “more” or “much more” reliant now on their travel management business (TMC) than they were before the pandemic.BUSINESS TRAVELS VALUE. 2 in 5 (41%) GBTA members and stakeholders report their company has actually re-evaluated the return on investment for company travel in regards to its value and worth. Among those who report their business is currently re-evaluating, leading locations consist of increased focus on tourist wellness and security (56%); increased use of hybrid conferences (combined virtual and in-person) (52%); Reduced travel for internal collaboration meetings (49%) and decrease in total travel expenses (48%).

Amongst travel buyers and procurement specialists, lots of report they spend “more” or “far more” time than before the pandemic working together with other business stakeholders, especially Security/Risk Management (66%), Human Resources (51%) and Senior Management/C-suite (46%).

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