Restart? Return? Recovery? Call it what you like, there is mounting
evidence that corporate travel is on its way back in the UK and across much of Europe
as all the necessary elements fall into place.
Borders are opening up, airlines are expanding networks and suppliers
have implemented new hygiene protocols. Corporates are putting new policies in
place and TMC transactions, for many agencies, have bottomed out and are creeping
up.
We’re also seeing a steady stream of surveys and reports
indicating the changing mood, but can we draw reliable conclusions from the
figures proffered?
This week hotel group Accor released a report based on a survey conducted in April that said a third of
travel managers it polled across Northern Europe believe their business travel
programmes will ‘recover’ within six months.
A further 21 per cent predict it will take less than three months,
and only 7 per cent expect the recovery to take more than 12 months.
Meanwhile, a Uniglobe Travel survey of members’ clients (conducted
15-25 June) found almost half (49 per cent) of companies either already have
employees travelling or expect to do so within three months, and that figure
rose to 61 per cent among European businesses.
Research by FCM Travel Solutions showed a little more caution in
the EMEA region – although the survey was conducted in May – with 37 per cent
of those surveyed expecting to travel domestically within one to three months,
and 32 per cent anticipating international trips within three to six months.
Corporates in the mining and construction sectors were most
confident, followed by training/education and financial services, which showed
similarities with figures from the Focus Travel Partnership’s TMC members.
It revealed last week that the marine, offshore and energy sector
was leading the way with bookings, followed by construction, finance,
manufacturing and technology.
For the week of 29 June to 3 July, 85 per cent of its TMC members
booked air travel on behalf of clients and 73 per cent booked accommodation. On
the other hand, 15 per cent – around eight TMCs – did not book any air travel
in that particular week.
Focus CEO Abby Penston said the findings are “encouraging” but
cautioned that “the crisis is far from over”.
Interestingly,
slightly more than half of Focus TMCs expect initial growth to come from
European travel while just a third said the UK. This stands in contrast to the
widely held view that domestic business travel will spearhead the recovery.
While the picture undoubtedly remains ugly, ‘green shoots’ is
beginning to trend in the corporate travel world as we all look for the
indicators of an upturn.
But even since the change in quarantine rules in the UK and
downgrading of FCO travel advice, only 4 per cent of buyers in a recent virtual
ITM meeting said their organisation was travelling more freely now.
Forty-one per cent said they are looking to ease their
organisation’s current travel restrictions but will continue to operate on a
business-essential-only travel policy, and 55 per cent said there were no
immediate plans to change their ban on travel.
There was consensus, though, that September and October could
herald more travel activity. And as the ITM’s chief executive Scott Davies
says, the figures at least represent a step in the right direction.
“It’s encouraging that an increasing proportion of
ITM’s buyer members are reporting the easing of restrictions on travel.”
Davies adds: “The road ahead continues to be
uncertain, but we are optimistic that business travel to, from and within the
UK is showing signs that it is beginning again.”
Amid growing optimism, the industry must remain realistic about
business travel’s return until the hard evidence – bookings and spend/revenue –
gradually but meaningfully return. And
in that respect, most are in agreement – there will be no opening of the
floodgates; business travel’s return will be a slow and steady build as we all
find our way in a new post-pandemic environment.