The rising number of COVID-19 cases in the U.S. is forcing business travelers to scale back their travel plans, with 67 percent planning to take fewer trips, 52 percent likely to cancel existing travel plans without rescheduling, and 60 percent planning to postpone existing travel plans, according to a new survey conducted by Morning Consult on behalf of the American Hotel & Lodging Association (AHLA).
Despite an uptick in leisure travel over the summer, the new survey highlights the dim outlook for business travel and events, which account for more than half of hotel revenue and aren’t expected to return to pre-pandemic levels until 2024. The lack of business travel and events has major repercussions for employment both directly on hotel properties, and in the broader community.
Hotels are expected to end 2021 down nearly 500,000 jobs compared to 2019. For every 10 people directly employed on a hotel property, hotels support an additional 26 jobs in the community, from restaurants and retail to hotel supply companies—meaning an additional nearly 1.3 million hotel-supported jobs are also at risk.
The survey of 2,200 adults was conducted August 11-12, 2021. Of these, 414 people, or 18 percent of respondents, were business travelers—that is, those who either work in a job that typically includes work-related travel or who expect to travel for business at least once between now and the end of the year.
While 67 percent of business travelers surveyed said they are likely to take fewer trips, 68 percent said they are likely to take shorter trips. Fifty-two percent said they are likely to cancel existing travel plans with no plans to reschedule and 60 percent are likely to postpone existing travel plans until a later date. Sixty-six percent said they are likely to only travel to places they can drive to.
The survey also tested attitudes among 1,590 people (72 percent of respondents) who are likely to attend large gatherings, meetings and events—all key drivers of hotel revenue. Of them, 71 percent said are likely to attend fewer in-person events or gatherings, while 67 percent are likely to have shorter meetings or events. Fifty-nine percent respondents said they are likely to postpone existing meetings or events until a later date and 49 percent said they are likely to cancel existing meetings or events with no plans to reschedule.
According to a recent Deloitte survey, corporate travel is projected to remain at only 30 percent of 2019 levels through the end of 2021. This lack of corporate travel would cost the hotel industry an estimated $59 billion in 2021, according to leading economists.
“Hotel employees and small business owners across the nation have been pleading for direct pandemic relief for over a year now. These results show why now is the time for Congress to listen to those calls and pass the Save Hotel Jobs Act,” said Chip Rogers, president and CEO of AHLA, in a press release.
According to AHLA, hotels are the only segment of the hospitality and leisure industry yet to receive direct aid despite being among the hardest hit.
Source: AHLA
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