Inflation, labour shortages to delay recovery in business travel spending

A recovery in global business travel spending to pre-pandemic levels is likely to be delayed by 18 months to 2026, a new industry forecast shows

Heathrow airport, international travel, coronavirus, curbs, covid
Photo: Bloomberg
Reuters
2 min read Last Updated : Aug 16 2022 | 7:14 AM IST

(Reuters) - A recovery in global business travel spending to pre-pandemic levels is likely to be delayed by 18 months to 2026 because of factors like persistent inflation, high energy prices, labour shortages and lockdowns in China, a new industry forecast shows.

The Global Business Travel Association (GBTA) said business travel spending rebounded by 5.5% to $697 billion in 2021 with North America leading the recovery, but remained well short of 2019 levels of $1.4 trillion.

The recovery outlook is more pessimistic than GBTA's last forecast issued a year ago, when it expected a full rebound to 2019 levels by 2024.

Environmental sustainability considerations and the regional impact of the war in Ukraine are also weighing on travel demand, the forecast said.

"The factors impacting many industries around the world are also anticipated to impact global business travel recovery into 2025," GBTA CEO Suzanne Neufang said in a statement. "The forecasted result is we'll get close, but we won't reach and exceed 2019's pre-pandemic levels until 2026."

Global Business Travel Group Inc, owner of the world's largest corporate travel agency American Express Global Business Travel, said last week that revenues this year were expected to average around 65% of 2019 levels, though that did not include the impact of a possible recession.

Airlines and hotels have been relying on strong leisure demand to help fill the gap left by the decline in corporate travel during the pandemic.

(Reporting by Jamie Freed in Sydney; Editing by Chris Reese)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

Topics :InflationCoronavirusbusiness travelGlobal economy

First Published: Aug 16 2022 | 7:14 AM IST

Next Story