What is really happening with business travel?

25-12-22

Messages about the recovery of the business travel segment have been mixed. Since the onset of the COVID-19 pandemic, some of the industry's leading voices have claimed that business travel will never fully recover due to changes in work habits, such as telecommuting and digital nomadism, corporate cost-cutting and increasing awareness of environmental issues.

In fact, international business travel has recovered at a slower pace than leisure tourism. At least until the fourth quarter of 2022. From October onwards, business travel starts to outpace leisure travel. 

While the latter's recovery is slowing as a result of factors such as inflation, the recovery of business travel - a less price-sensitive segment - is gaining momentum.

Leading the recovery in business travel is the Gulf Cooperation Council (GCC) countries, where, at several points this year, the recovery in business travel has far outpaced that of leisure travel. This trend will accelerate in the fourth quarter and peak in December.

In the fourth quarter of 2022, the recovery of business will also outpace that of leisure in the European Union and the United Kingdom, as well as, to a lesser extent, in the United States and Canada. 

Therefore, while the business segment undoubtedly faces threats to its continued success, current trends suggest that this form of travel will be around for some time to come.