The First Signs Of Optimism Emerge In Latest GBTA Study

Alexandria, VA – Over the past several months the world watched the global business travel industry come to a halt but according to new research issued today by the Global Business Travel Association, there are signs of optimism and recovery on the horizon. The study found that most companies are planning a recovery for 2020 with one in three planning for a recovery in three months or less.

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To understand the coronavirus’s effects on business travel, GBTA conducted its sixth poll among membership on April 17-22, 2020. GBTA received responses from almost 1,600 member companies throughout the world. View the entire poll results here.

“The global business travel industry remains at a standstill, but we are finally beginning to see some light at the end of this very long tunnel,” said GBTA Chief Executive Officer Scott Solombrino. “GBTA members are planning their post-coronavirus recovery plans and most expect to be operational in 2020. This is a positive sign. The majority of GBTA member companies expect domestic business travel to resume in the next 2-3 months and most expect employees will be willing to travel. We have waited a long time for there to be optimism around the pandemic in our industry, and it should continue to grow as we get closer to halting the spread of this disease.”

Among the poll’s key findings are:

  • Most companies are planning a recovery plan in 2020. One-third (35%) of GBTA members say they plan for their company’s post-coronavirus recovery plan in three months or less, while a quarter (27%) say they plan for a post-recovery in 6-8 months. In addition, only one in ten are planning for recovery in 2021, while one in four (28%) report they do not know.
  • Among GBTA members who report their company has canceled at least some domestic business trips, six in ten (62%) say they expect domestic travel to resume in the next 2-3 months. One in five report they expect domestic travel to resume in the next 6-8 months (18%) or are unsure (19%).
  • GBTA European members (74%) are more likely than members based in North America (58%) to expect domestic business travel will return in 2-3 months. In addition, members based in North America (21%) are more likely to be unsure when domestic business travel will resume compared to members based in Europe (12%).
    • Eight in ten European members expect international business travel will resume in 2-3 months (33%) or 6-8 months (47%). Two-thirds of GBTA members in North America expect international travel to resume in 2-3 months (26%) or 6-8 months (38%).
  • A majority of GBTA members (88%) expect employees will be willing to travel once restrictions are lifted. GBTA members from North America (90%) are more likely than members from Europe (83%) to expect their employees will be willing to travel after restrictions are lifted.
  • Looking at what it will likely take GBTA members to feel comfortable with employees traveling for business, many information resources are perceived as being important including: a decline in new infection rates (92%), governments lifting travel restrictions or advisories (91%), guidelines or statements from public health agencies such as the WHO or CDC (90%), effective anti-viral treatments (89%), removing stay-at-home lockdowns (88%), a new Coronavirus vaccine developed and available to employees (85%), advice from a risk management firm/consultant (e.g., Worldaware or International SOS; 60%), and other companies allowing travel (49%).
  • One in five GBTA buyer members note their company has reduced staff or laid off (21%), furloughed (21%) or cut employee salaries (20%) as a result of the coronavirus.
  • GBTA supplier member optimism about the industry’s path to recovery vary. One in five (19%) say they are more optimistic than they were last week, while six in ten (57%) say they feel the same as they did last week. One-quarter (24%) feel more pessimistic about the industry’s path to recovery than they did the week prior
    • GBTA supplier members note bookings from corporate customers have remained the same (41%) or decreased (49%) in the past week.
  • Some GBTA members report their company does allow some essential travel. One-third (35%) say while their company has canceled or suspended all non-essential trips but allows some essential travel.
  • GBTA member sentiment varies concerning the impact Covid-19 has had on the industry. When asked about layoffs/furloughs in the corporate travel industry, four in ten feel the worst has already happened (42%) while an equal number feel the worst has yet to come (41%). GBTA members in North America are more likely to feel the worst has already happened when it comes to layoffs and furloughs (47%) compared to members based in Europe (30%).
    • There is more consensus when thinking about canceled flights, with three in four (77%) GBTA members stating the worst has already happened compared to one in ten (15%) who feel the worst is yet to come.
    • Six in ten (62%) GBTA members feel the worst has already happened concerning hotels suspending operations compared to one in four (26%) who feel the worst is yet to come. GBTA members based in North America (64%) are more likely to feel the worst has already happened regarding hotel suspensions compared to members based in Europe (53%).
    • GBTA members are more pessimistic about revenue loss for travel companies. Over half (56%) feel the worst is yet to come in terms of industry revenue loss while one-third (29%) feel the worst has already occurred.
  • GBTA member companies have not opened international (98%) or domestic (93%) travel as companies continue to cancel and/or suspend almost all business travel regardless of destination. In fact, almost all GBTA member companies (57%) report they have suspended or canceled all business travel across the board.
  • Business travel remains halted across the globe. Companies continue to cancel or suspend almost all business travel regardless of country or region. GBTA members report their companies have canceled or suspended “all” or “most” business trips to:
    • China – 99% canceled or suspended
    • Hong Kong – 99% canceled or suspended
    • Taiwan – 99% canceled or suspended
    • Other Asia-Pacific countries (e.g., Japan, South Korea and Malaysia) – 99% canceled or suspended
    • Europe – 99% canceled or suspended
    • Middle Eastern countries – 98% canceled or suspended
    • Latin America – 97% canceled or suspended
    • Canada – 95% canceled or suspended
    • United States – 95% canceled or suspended

Methodology:

GBTA conducted a poll of its members across the globe from April 17-22, 2020. An email invitation was sent to 5,638 travel professionals, and we received 1,557 responses.

About the Global Business Travel Association

The Global Business Travel Association (GBTA) is the world’s premier business travel and meetings trade organization headquartered in the Washington, D.C. area with operations on six continents. GBTA’s 9,000-plus members manage more than $345 billion of global business travel and meetings expenditures annually. GBTA delivers world-class education, events, research, advocacy and media to a growing global network of more than 28,000 travel professionals and 125,000 active contacts. To learn how business travel drives lasting business growth, visit www.gbta.org.

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