New variant developments, government restrictions and international policy inconsistencies continue to hamper a more accelerated return for global business travel; however, the industry continues to reflect progress and optimism in its long-term expectations for 2022, as revealed by the latest poll from the Global Business Travel Association (GBTA).
This poll is the 25th in GBTA’s COVID-19 recovery series tracking the pulse of global travel buyers, supplier members and other stakeholders as the industry navigates business travel during tough times.
In a display of optimism for the long haul, three in four travel managers expect business travel volume at their company will be much (17 percent) or somewhat (58 percent) higher in 2022 than it was in 2021. Another one in 10 (12 percent) expect business travel to remain about the same as 2021, but a few (5 percent) expect it to be lower. Among travel suppliers and travel management companies (TMCs), three in four expect their company’s revenue in 2022 from business travel to be much (25 percent) or somewhat (51 percent) higher compared to 2021. An additional one in 10 (13 percent) suppliers and TMCs expect company revenue to remain about the same as 2021.
Poll results revealed a dip in the percentage of companies who continue to suspend or cancel business travel. Sixty-eight percent of GBTA member companies have not yet opened international travel, compared to 79 percent in the October 2021 GBTA poll, and 29 percent have not opened domestic business travel versus 38 percent in October. Less than four in 10—38 percent versus 48 percent in October—of respondents report their company has suspended or canceled all or most business travel regardless of location.
As for the current business impact, six in 10 (60 percent) suppliers/TMCs report their bookings from corporate clients decreased from the month before. One in five (21 percent) characterize their bookings from corporate customers as having increased, but another one in five (19 percent) report their bookings remained the same. A majority of suppliers and TMCs surveyed are concerned about the impact of Omicron on their company’s revenue. Seven in 10 report Omicron will likely have a “very negative” (32 percent) or “moderately negative” (38 percent) impact on their company’s revenue derived from business travel. An additional one in four feel Omicron will have either a “slightly negative” (20 percent) or no impact (3 percent) on business revenue.
When asked to compare Omicron and Delta variant concerns, respondents were more positive but still divided. Two in five report they are either less worried (43 percent) about Omicron compared to Delta or are equally concerned (45 percent). Only one in 10 (13 percent) say they are more worried about Omicron versus Delta.
Relatively few companies have introduced new travel restrictions due to the Omicron variant. Only one in four (27 percent) travel managers/procurement officers report their company has introduced new travel restrictions or requirements, whereas two-thirds (67 percent) report their company has not. More than half (52 percent) reported their company is unlikely to do so.
When asked to name the single greatest barrier to business travel, 43 percent of respondents cited government policies that restrict travel or make it difficult (such as entry restrictions or mandatory quarantines). Travel managers based in the U.K. (66 percent) and Europe (62 percent) were more likely than those in North America (33 percent) to cite government policies as being the single greatest barrier to business travel. Conversely, North American travel managers (27 percent) were more likely than those in Europe (15 percent) to say company policies restricting employees from traveling is the biggest barrier. Other business travel barriers included company policies restricting employees from traveling (24 percent); employee unwillingness/reluctance to travel (9 percent); offices not being fully open (9 percent); and travel budget freeze/cost savings (6 percent).
When asked to name barriers specifically to international business travel, respondents said policy uncertainty (72 percent), strict requirements on international visitors (69 percent), policy inconsistencies across different countries (64 percent), and required documentation and paperwork (45 percent).
Despite Omicron, most travel managers feel employees are willing to travel. Two in three (64 percent) feel their employees are “willing” or “very willing” to travel for business in the current environment. This was down, however, from 78 percent in the October GBTA poll. A majority of seven in 10 (72 percent) GBTA members and stakeholders report they would definitely or probably travel for business. However, respondents based in Europe (49 percent) are more likely than those based in North America (35 percent) to report their company has canceled all or most business trips.
Source: GBTA
Related Stories
General Pessimism Around Continued Impact Of COVID Runs High
As Omicron Emerges, Business Travel Industry Shows Concern
GBTA: European Business Travel Recovering at a Cautionary Pace