Business travel is on the mend, according to a new study from the World Travel and Tourism Council and McKinsey & Company consultants.
The latest WTTC/McKinsey report suggests that, following a 61% decline in 2020, global business travel spending is expected to rise by 26% this year and by 34% in 2022. Overall, they expect business travel to recover to two-thirds of 2019 levels by next year.
But the report, titled Adapting to Endemic Covid-19: The Outlook for Business Travel, says recovery will vary by region. In the Asia-Pacific region, business travel is expected to rise 32% this year and 41% next year. In the Americas, however, they project a modest 14% growth rate this year and 35% next year.
“Business travel is starting to pick up. We expect to see two thirds back by the end of 2022,” said Julia Simpson, WTTC President and CEO.
The study says COVID-19 “has had a major effect on travel & tourism, leading to financial losses of almost US$4.5 trillion and a loss of more than 62 million jobs. But there are signs that the sector is beginning to recover, with global travel spending on the rise. However, the road to recovery will be a long and winding one, given the likelihood that COVID-19 will become endemic.”
“In this context, the travel & tourism sector may need to contend with shifts in international travel restrictions which could last for several years.”
“The research underpinning this report makes it clear that the sector’s recovery will be heavily influenced by vaccine rollouts and virus management strategies. To date, these have varied globally. There remains a highly uneven rollout of vaccines, and this large variation will influence how quickly travel rebounds.
“There may be high variability in the degree to which governments adopt different strategies, including travel restrictions, to contain COVID-19. Moreover, government decisions and actions to protect their citizens regarding healthcare considerations and travel policies will continue to have a significant and immediate effect on travel & tourism. Policy shifts may also disproportionately affect certain markets that depend on international travel.”
