Business travel has quietly resumed.
At least that it is the opinion of Derek DeCross, senior VP of global sales for
IHG Hotels & Resorts.
IHG’s groups and
meetings business is the key driver, with the global pace of bookings steadily increasing
between January and August of 2021. In the UK, bookings almost reached 2019
levels in June (see below).
"The frequent headlines
declaring the death of business travel are simply not true," said DeCross.
In its August earnings update, the group said that major companies
are focusing on destination-driven corporate gatherings versus large-scale
conferences and events. Small to medium-sized companies are back on the road
too.
“Even last year – before
vaccines and when travel restrictions were at their strictest – we saw small to
mid-size companies begin travelling again,” said DeCross. “We observed that the
desire for business travel never fully went away.”
Debbie Male, IHG's head of sales, Europe, added, “Sports and entertainment is a leading groups and meeting
industry in Europe, alongside government, media and publishing. As
has been the trend throughout 2021, we’re continuing to see the
return of face-to-face gatherings in the corporate sector, relatively
short-lead bookings, and the groups and meetings tend to be smaller gatherings
compared to pre-pandemic.”
Corporate travel is returning too, with August being the best
month of the year to date.
"It’s so encouraging to
see the upward trajectory for corporate travel globally, and that this is also
true for the UK and the rest of Europe,” said Male. “Corporate bookings
continue to be heavily driven by domestic projects in the UK, for example
transportation, infrastructure and government business which has continued
throughout the pandemic.”
The group said the leading
markets in the UK are the M4 corridor, London, East Anglia and Essex,
Birmingham, and Aberdeen.
Male added, “A lot has been
said about the long-term impact of the pandemic on business travel, but
customers have told us how important this remains to them, and
we fundamentally believe it will continue to return, even if it looks a bit
different. Although we could see fewer one-day trips for a
two-hour meeting, more people may choose to blend business and
leisure travel, and we expect more events to take place as
companies bring colleagues together in light of a bigger shift to smaller
offices and remote working.”