Business travel as we’ve known it is a thing of the past. From Pfizer Inc., Michelin and LG Electronics Inc. to HSBC Holdings Plc, Hershey Co., Invesco Ltd. and Deutsche Bank AG, businesses around the world are signaling that innovative new communications tools are making many pre-pandemic-era trips history.
A Bloomberg survey of 45 large businesses in the U.S., Europe and Asia shows that 84% plan to spend less on travel post-pandemic. A majority of the respondents cutting travel budgets see reductions of between 20% and 40%, with about two in three slashing both internal and external in-person meetings. The ease and efficiency of virtual software, cost savings and lower carbon emissions were the primary reasons cited for the cutbacks. According to the Global Business Travel Association, spending on corporate trips could slide to as low as $1.24 trillion by 2024 from a pre-pandemic peak in 2019 of $1.43 trillion.
Business travel has “forever changed,” Greg Hayes, CEO of jet-engine maker Raytheon Technologies Corp., said in a Bloomberg Radio interview in July. About 30% of normal commercial air traffic is corporate-related but only half of that is likely mandatory, he said. While the market may eventually recover, sophisticated communication technologies have “really changed our thinking in terms of productivity,” Hayes said.
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