Travel buyers have predicted that global companies could
start resuming business travel within the next two to three months, according
to the latest survey by the GBTA on the impact of the coronavirus.
In the survey,
32 per cent of 1,000 members polled said they believe employees will start travelling
for work again to regions where their company has cancelled or suspended trips within
the next two months, while 19 per cent said it will be three months. Sixteen
per cent said they are not sure when trips will resume.
However, 28 per cent said they think it will be more than a
year before levels begin to recover.
The statistics come as 98 per cent of those asked by the
GBTA said they have cancelled or suspended all international business travel
and 92 per cent have done the same for domestic trips. On average, buyers
estimate their company has cancelled 92 per cent of trips booked for March and
April 2020.
But true road warriors could be eager to get back on the
road, with buyers predicting most (33 per cent) or some (33 per cent) employees
will be willing travel after the pandemic. Only 13 per cent anticipate
unwillingness on the part of some employees.
When asked if companies are using digital alternatives to
face-to-face meetings, 83 per cent of buyers said their employees are
frequently using virtual platforms for meetings and 11 per cent use them occasionally
due to social distancing measures in place around the world.
The effect on suppliers and TMCs is apparent, with 96 per
cent of travel companies polled characterising the impact of the coronavirus
outbreak as significant. Two-thirds of TMCs said their company has laid off (69
per cent), furloughed (66 per cent) and cut staff salaries (66 per cent) as a
result of the pandemic. On average, these firms estimate that two-thirds of
employees have been affected by these actions.
When comparing the Covid-19 situation to past events that
have posed a threat to the travel industry, 95 per cent of respondents with
more than 20 years’ experience said they believe the financial impact will be
more severe than the 9/11 terrorist attacks in the US and 85 per cent said it
will be more severe than the 2008/2009 financial crisis.
GBTA COO and executive director Scott Solombrino commented: “With
the spread of the coronavirus and many countries under quarantine and other
restrictions, it is not surprising that business travel has come to a halt. The
toll in terms of public health and the global economy cannot be overstated. We
applaud government actions and financial assistance to help address the global
crisis and stabilise global economies. The survey shows that travellers are
eager to get back on the road, which is a positive sign for future business
travel. Once this pandemic is successfully combatted, business travel can
return to being a positive economic driver of the global economy.”
Looking ahead, 62 per cent of GBTA members expect the
coronavirus will change the way their company conducts business in the future.