October 5, 2022

Business Travel Remains Negative While Leisure Still Upbeat

With staff members continuing to return to offices, ongoing vaccination progress, and the reopening of many worldwide borders, the time would seem to be ripe for the return of organization travel.

NB: This is an article from STR

Yet, even prior to the news of Omicron in recent days, there continued to be negative belief about the return of this section whereas pandemic-era leisure travel belief stays resilient. In November 2021, STR carried out an online survey of its Traveler Panel– an engaged audience of travel consumers– to analyze the fortunes of the industry at this unsure time. The research gathered the views of nearly 600 international service travelers.

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When service tourists were asked about their possibility to travel for leisure once the pandemic is over, 35% specified that they were more most likely to take a trip for over night journeys. Their net tendency for leisure travel in November 2021 was +25%, which is the specific opposite of the propensity reported for organization travel.

The most recent data indicates that more consumers are less likely to travel for overnight organization post-pandemic (44% in November 2021 vs. 39% in July 2021). Additionally amongst organization travelers, net tendency to travel, which is the distinction in between those most likely and less likely to travel, stood at -30% in November 2021 after being available in at -27% in July 2021.

Analysis of organization travel sentiment throughout different age groups reveals only a slightly less unfavorable belief amongst more youthful business travelers compared to those in older age. The narrowing belief highlights that the views of more youthful and older audiences are assembling. This may be due to increased self-confidence in taking a trip amongst older audiences due to the fact that of vaccine success along with reduced self-confidence among younger travelers, who are normally less threat averse– potentially due to fears of long-haul COVID, which is reported to be more widespread in more youthful individuals.

Why such different belief?

Additionally, some employees who traveled for organization in the past are not yet permitted to take a trip due to business policies and issues of business legal departments about duty of care if a worker contracts COVID-19 while traveling.

One can speculate that the distinction in sentiment has more to do with the companies for which business travelers work rather than business tourists themselves. While customers are eager to travel after being “locked down” for more than a year, businesses have actually taken pleasure in considerable cost savings with minimized travel expenditures, while still usually being able to provide items and services, which has greatly benefited their bottom lines.

Necessary company travel is taking location. Business travel that has a less direct return on financial investment is most likely the travel that is not taking place, and that type of travel is something that company travelers appear to be feeling will not happen post-pandemic.

When asked more normally about whether travel for organization functions will return to pre-COVID-19 levels, over half disagreed. This high level of difference is especially significant due to the fact that respondents tend to respond toward reasonable, according to submission bias. On the positive side, more than one-quarter of service tourists concurred that travel for service purposes will return to levels experience prior to COVID-19, so there is some hope.

A new opportunity?

While the “work-cation” will not come close to changing standard organization travel, it is one of numerous new opportunities that could be pursued as the world gets used to new methods of operating. Where service travel winds up remains to be seen. With so much of the employed population having actually been restricted for months working from home and countless online meetings, the hope is that traveling to meet and engage with customers and associates once again will resume in new kinds and with renewed vigor. We will continue to check out hypotheses and patterns in additional COVID-19 traveler trends research and blog posts.

There was favorable sentiment about the idea of being able to work while traveling among company travelers surveyed. Practically one-third (30%) of company tourists specified that they would be more interested in a “work-cation” compared with pre-pandemic times, resulting in a net positive interest score of 6%.

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On the positive side, more than one-quarter of business travelers agreed that travel for company purposes will return to levels experience prior to COVID-19, so there is some hope.

NOTE: This research was undertaken in early November 2021 prior to the Omicron variant emerged. As a result, participants views do not represent the newest situation around COVID-19.

Analysis of organization travel belief across various age groups reveals just a slightly less unfavorable sentiment among more youthful company travelers compared with those in older age groups. When service tourists were asked about their likelihood to take a trip for leisure once the pandemic is over, 35% mentioned that they were more likely to travel for over night journeys. Their net tendency for leisure travel in November 2021 was +25%, which is the exact opposite of the propensity reported for organization travel. Business travel that has a less direct return on investment is most likely the travel that is not occurring, and that type of travel is something that company travelers appear to be feeling will not take place post-pandemic.

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