Tiffany responded that the world has seen a huge loss as a result of the covid-19, which includes job losses.
“What’s the impact of Covid-19 on business travel? What do you forecast in terms of recovery?”
Tiffany responded that the world has seen a huge loss as a result of the covid-19, which includes job losses. We have seen a significant decrease in travel spending from 2019 to 2020. Although, global business travel is expected to increase by 26% in 2021 and 34% in 2022. Figures are growing, but the road is bumpy.
“What’s the impact of Covid-19 on business travel? What do you forecast in terms of recovery?”
Tiffany responded that the world has seen a huge loss as a result of the covid-19, which includes job losses. We have seen a significant decrease in travel spending from 2019 to 2020. Although, global business travel is expected to increase by 26% in 2021 and 34% in 2022. Figures are growing, but the road is bumpy.
Tiffany Misrahi from WTTC was interviewed by Nick on the subject of the outlook for business travel.
“What’s the impact of Covid-19 on business travel? What do you forecast in terms of recovery?”
Tiffany responded that the world has seen a huge loss as a result of the covid-19, which includes job losses. We have seen a significant decrease in travel spending from 2019 to 2020. Although, global business travel is expected to increase by 26% in 2021 and 34% in 2022. Figures are growing, but the road is bumpy. The consequences of Covid-19 will remain. Hence, the pandemic will become endemic, and we need to adapt to the situation continuously.
On another note, business travel impact is much higher than leisure travel. It is responsible for the highest spending at destinations and is essential for the industry’s recovery. To put this into context, Tiffany mentioned that pre-pandemic, around 70% of global revenues are initiated from business travels booking high-end hotels. Business travel also contributed to around 55-75% of airline profits.
“What is the impact at the regional level? What differences do you see around the world?”
Data is essential, but it is hard to make forecasts because of the difference in the regional situations. However, the good news is that people want to travel, which pushes the industry into recovery in the short term. In the Americas, business travel is expected to rise 14% and 35% in 2022. In Asia-pacific, a 42% increase is expected in 2022.
Big markets such as the US and China are seeing a recovery at the domestic level. Recovery at the international level is, of course, slower.
“Endemic, how do you see the implications of that? how might we ready ourselves to rebuild?”
From a scientific point of view, covid will become endemic. Whilst the initial assumption was that the pandemic would be a phase and we’ll return to normality, we need to acknowledge that the situation will evolve, and we need to adapt to it over time.
We have seen other sectors adapt to changes after major events. For example, after 9/11, security and measurement became a trending topic. Likewise, we need to prepare for the consequences of the pandemic.
Vaccination and testing programmes are important factors in the process of recovery. The UK is a privileged position. However, uneven distribution in some regions can slow the process.
What needs to be considered is that 20 countries accounted for 60% of global spending in travel in 2019. So from an international perspective, 20 pairs of countries ( US-China, China-US) made up of 23% the global data. This is while we have 8000 pairs of countries.
“How can we rebuild the industry during the pandemic?”
As an industry, we need to consider a few things:
1. The pandemic has had both short term and long term consequences on travel. Therefore, the industry needs to consider it as an endemic and plan for recovery bearing in mind the implications of Covid-19 on travel.
2. Similar to other major events in history, the industry will have to get through this pandemic by accepting the consequences and adapting to changes.
3. Variable infection rates and uneven testings and vaccination programmes mean regions worldwide are in different situations.
Tiffany is the Vice-President of Policy & Research at WTTC where she is responsible for shaping the Travel & Tourism sector’s research and policy agenda and curating content for WTTC events including its Global Summit.
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