- Due to the COVID-19 outbreak, companies are looking for ways to cut back on their expenses.
- Pre-pandemic, corporate travelers represented about half of all major airline revenue.
- Airline travel for business is expected to shrink permanently by 19 percent.
With revenues hit due to the COVID-19 outbreak, companies are looking for ways to cut back on their expenses. This has brought attention to corporate air travel. Pre-pandemic, corporate travelers represented about half of all major airline revenue, amounting to 1.7 percent of the global GDP. However, owing to the ongoing crisis, airline travel for business is expected to shrink permanently by 19 percent.
When travel restrictions were imposed worldwide, businesses replaced direct meetings with virtual ones to contain the pandemic’s spread. Many businesses adapted to virtual meetings and have realized that not all meetings must be in-person. Businesses have also realized huge cost savings on air travel spend.
In the future, airline travel will be a more mindful and thought-out way of traveling, allowing employees to have a better life balance and employers to have a better return on investment.
Companies are organizing virtual meetings and this model has become more preferred for many of them. They have realized that in-person meetings are not always required. The post-pandemic hybrid work model that combines face-to-face and virtual setups can make businesses successful while limiting the company’s travel costs. Employees should travel only when it is of utmost necessity. Here are some of the measures being taken by companies to reduce airline business travel and bolster revenue:
- Cost management: Almost every industry is facing difficulty due to the pandemic to varying levels. In that, the companies are actively looking at revenue-generating measures wherever possible. Restricting business travel is at the top of their list, wherein they are canceling all non-essential travels.
