Corporate travel is slowly returning.
As mobility restrictions due to pandemic ease and companies gradually return to front-end work, so too business travel is on the rise. However, the industry is still far from reaching the numbers before 2020, when the drop in event budgets was 70%.
Currently, although a good portion of companies are continuing a hybrid mode of work, corporate travel is showing signs of greater vitality since the beginning of this year, according to the experience of travel agencies. They pointed out that, among the sectors that contributed the most to the recovery, were: those associated with energy, (Oil & Gas and Mining); and the pharmaceutical and food industries.
A recent survey by Travel Services, (the new TTS Viajes brand in the process of its internationalization), found thatSMEs are pursuing their travel plans faster than large companies. It happens that “small companies or those from regional economies with no representation or offices in different parts of the country in which they do business, have forced many executives to continue the habit of corporate travel to i promote and/or promote their businesses, ”explains Federico Rovida, commercial manager of Travel Services. For this reason, in this segment, the recovery in terms of the number of trips exceeded 70%.
In contrast, in large corporations already more frequent use of virtual tools, larger resources allowed to reduce the number of flights of its executives. On average, in April 2022, they were at 40% level in the number of trips compared to the same month of 2019 ”, according to these records.
Paula Cristi, Despegar’s general manager for Argentina and Uruguay, added: “It’s true that there has been significant change in companies because of virtual platforms that promote remote meetings. However, now corporate travel is back “, insure. On the one hand thanks to the simplification of restrictions and the advanced methods of vaccination, but also the importance of face to face and personal relationships, when the context is more favorable in terms of health confidence ”He says.
In fact, as is the case in the industry in general, the first corporate trips to be resumed were internal ones. This trend is already being seen, especially in the US and Europe, according to a recent study by the Global Association of Corporate Travel. “Although obviously there is still time for them to return to pre-pandemic rhythm, “ explains the platform directive. of Tourism.
Based on experience with Travel Services, last month, 70% of customers restarted travel purchases. And 25% have already booked their first trips between May and June of this year. That if, with enough change: for example, now Most cabotage trips are aggregated and, to a lesser extent, international. (In this case, not only because of the pandemic but also because of the war between Russia and Ukraine). Also the length of the outings varied: while the average stay at the destination in 2019 was between 3 to 5 nights, for the first quarter of 2022 it was between 1 and 2 nights.
In addition, among the new trends in the sector, the bleisure. “A combination of corporate travel with outstanding rest in favor of the executive who asks to stay in destination to rest or take a few days of vacation, “Rovira explained.” The additional cost of the trip will be borne by the executive. If the company notices that the ticket cost on the return date is equal to or less than the business travel dates, it is likely to cover the cost and follow the executive’s decision, ”he said.
According to Despegar’s directors, “a very important factor that will be central to new industry trends is the real-time data offered by artificial intelligence and which we use ourselves in the company. These are tools that help corporations plan their trips more efficiently, ”Cristi pointed out.
Source: Clarin
