The tourism industry revived in a big way this summer as people tired of staying close to home throughout the pandemic jumped at the chance to travel.
But business travel has yet to return to pre-pandemic levels. A recent report from the Global Business Travel Association notes that while business travel spending grew 5.5% year over year to $697 billion in 2021, that figure still pales in comparison to the $1.4 trillion spent on travel. business in 2019.
A new report suggests the decline of bag passengers may be permanent. Among people who traveled for work at least three times a year before the pandemic, two in five Americans say they no longer expect to travel for business, according to a new report from decision intelligence firm Morning Consult. The report surveyed more than 16,000 people across the Americas, Europe and the Asia-Pacific region between October 2021 and summer 2022.
The decline in business travel appears even more pronounced in Europe, with 55% of respondents in the UK and 59% in France saying they will no longer travel for work.
In contrast, people in India, China and Brazil are more likely to see business travel in their future. But overall, according to the report, “it is now undeniable that business travel will never return to a pre-pandemic normal.”
How the pandemic changed business travel
The Morning Consult report does not delve into the reasons for the decline in business travel. But there are a number of good theories about why people are taking fewer business trips — and some important caveats.
A big reason business travel has lagged behind leisure travel in the wake of the pandemic is that people have adapted to video conferencing and hybrid work. Now that we know how much work can be done with Zoom, the benefits of in-person interaction may not always be worth jetting off to see clients and colleagues. “I think about my lost productivity and personal time and my boss’s money and the pollution coming out of my plane,” Farhad Manjoo in the New York Times last year, reflecting on how many of his pre-pandemic business trips now seem unnecessary.
Corporate belt-tightening is also making business travel less common, especially in the face of high inflation and (perhaps overblown) worries about a recession. Additionally, environmental concerns are making companies less forthcoming about the carbon footprint of business travel, according to a recent report from the Global Business Travel Association. And international business travel has been complicated by China’s Covid-19 lockdowns and quarantine policies that vary by country.
But companies are not avoiding business travel entirely. They’re just being more selective about when and why they send workers.
A recent New York Times report found that while individual business travel has taken a hit in the wake of the pandemic, companies are still happy to spend on travel to conferences and conventions. Meanwhile, consulting firm AlixPartners says companies are reducing the number of workers flying out for internal meetings and instead prioritizing meeting with clients. However, AlixPartners predicts that business travel will remain 15-25% below pre-pandemic levels until at least 2025.
