How has COVID-19 changed Business or Corporate Travel?- Part 3
The third part of the blog gets more interesting as we discuss another key parameter that will have a huge bearing on the how business or corporate travel will be conducted in the near future. Did we mention safety hygiene? Hygiene, both personal and communal, and in everything we do, has turned out to be a life-saving virtue throughout the pandemic, in addition to maintaining social distancing and equipping ourselves with a proper safety gear. Not surprisingly, customers will display a greater sense of loyalty towards hotel and restaurant brands that practise hygiene religiously, in line with the already existing safety standards and protocols.
Duty-of-care policy:
Now, if you are a corporate or business travel manager, you are in for a spot of bother. The duty-of-care policy adopted by a company is traditionally a documentation of the safety protocols required to protect the welfare and well-being of the employees and staff during business travel. The company has a moral responsibility to safeguard their employees against COVID-19 and other impending virus infections in the future via the duty-of-care policy, and more importantly ensure the employees are fully compliant with the guidelines prescribed.
The travel manager, therefore, has to ensure that majorly hygiene does the talking in the selection of travel vendors including hotels, restaurants , cabs, etc. No longer will cost control alone dictate terms in the selection criteria, but also safety, in addition to other factors such as risk assessment and compliance. It goes without saying that traveller safety, along with comfort, can directly impact productivity at the end of the day. This also includes avoiding travelling in jam-packed planes and overcrowded airports. The firm should also guarantee medical response and security of the employee in the wake of an emergency, well aware of the potential risks. All said and done these are tough times if you are a business owner, and both caution and care must be exercised in order to protect the safety interests of your travelling employees.
How has COVID-19 changed Business or Corporate Travel?- Part 2
Most travel management pundits predict that domestic travel will pick up faster than international travel, although this small rate of increase will be triggered only by the current economic situation. It is seen that domestic travel had recovered fully in two to three years in the previous economic slumpdown. Most businesses are expecting air travel to normalize, and this is evident from the increasing air travel bookings in the US, the most severely pandemic-hit country, in the period between June and July.
There are many mid-and senior-level executives in several corporate companies, particularly in the area of travel, finance and entertainment, who feel that business travel will resume no sooner than lockdown restrictions are relaxed, as Zoom meeting, and other virtual conferencing tools aren’t just good enough where human touch is of utmost essence. Mergers and acquisition, worth billions of dollars, are at stake and to set them in motion, requires more than meeting the eyes with clients, colleagues, investors and project sponsors. Logistics are very much in the scheme of things if key corporate events have to be conducted offline. Virtual summits, as most industry experts put it, are clearly rudderless without personalized call-to-action. There are many companies that have hired travel managers, and expecting the shutdown restrictions to be lifted to resume business travel. Amongst those who will be the first to hit the road include management consultants and VCs expected to revive the fortunes of the companies hit by pandemic-caused recession.
Corporate travel is slated to rebound at least by 50 percent same time next year, but conferences, industry summits, meet-ups and conventions may require more time to jump back than one may expect. It is to be noted that business or ‘bleisure’ travellers, as they are called due to the combination of business and leisure contribute the most to the travel sector as historically they have never been price-sensitive unlike leisure travellers. This seemingly justified optimism could even raise hotel rates and airfares in the same period.
How has COVID-19 changed Business or Corporate Travel?- Part 1
The devastating effects of COVID-19 have stalled business operations worldwide. Industrial operations have come to a standstill, and there really seems to be no respite for business owners as such. The travel industry has been grinded to a halt with lockdown after lockdowns in place, though they cannot be maintained indefinitely. While the pandemic is not yet over, most corporate employees have been asked to work from home and hold meetings virtually. As a result, corporate travel, which includes planning a business trip, conducting a corporate event, or other related activities for the corporate traveller, has been severely hit.
How do the current T & E numbers stand?
The Global Business Travel Association (GBTA) published a report that 98 percent of its member companies had put off international business trips, and 92 percent cancelled all or most domestic trips. However, the survey conducted during the month of Month later had it that more than 50 percent of its respondents had wanted to resume travel in the coming months. These numbers shouldn’t actually surprise you, given the gravity of business travel activities. Furthermore, Certify, a leading T & E report management solution provider, estimates that 445 million business trips happen every year, valued at around $251 billion. GBTA estimates the same to be around $345 billion for T&E.
An Oxford Economics study puts it that every dollar invested in business can generate as much as $12.50 back in revenue. If you put it all together, the corporate firms are losing revenue big time, as well as the travel tour operators, agencies and the travel management companies (TMCs) owing to the travel ban in the prevailing pandemic situation.
Another survey conducted by Oliver Wyman has it that about three-quarters of business travellers expect to travel in the same frequency or even more post-pandemic, due to resurgence in economic activity, comparatively low travel costs with the easing of lockdown, and pent-up demand after hosting virtual meetings for several months. Even after lockdown is over, and when business will eventually pick up, business travellers will think twice before travelling internationally to stay away from infection. Let’s see how travel business travel will look up post COVID-19 situation in the subsequent blogs.
