Business travel to reach two thirds of pre-pandemic levels by 2022 – CityAM : CityAM

Business travel spending is expected to rise by more than a quarter, reaching two thirds of pre-pandemic levels by 2022.

According to a report made by the World Travel and Tourism Council (WTTC) and McKinsey, this year’s 26 per cent rise in global travel spending will increase in 2022, going up by 34 per cent.

Asia-Pacific, the Middle East and the Americas will see the biggest hike – registering a 41, 36 and 35 per cent growth respectively. The Middle East has also led the way in terms of business travel revival for this year, with a 49 per cent growth compared 14 per cent registered in the Americas.

“Business travel has been seriously hit but our research shows room for optimism with Asia Pacific and Middle East first off the starting blocks,” said Julia Simpson, WTTC’s chief executive and president.

Business travel was one of the sectors that was hit the hardest by the pandemic, taking longer to recover from its 61 per cent collapse in spending, which before the pandemic brought in the highest earnings in many destinations.

Before Covid-19, business travel accounted for 70 per cent of global revenues for high-end hotel chains, making up between 55 and 75 per cent of airline profits.

“A return to business travel will be critical in our industry’s recovery from the pandemic,” said Hilton’s chief executive Chris Nassetta.

“We’re continuing to see incremental progress and this report illustrates just how important business travel is to the global economy. Travel and tourism will continue to drive progress for millions around the world – especially as people begin traveling again.”

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