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Corporate business travel on airlines is expected to shrink by as much as 19 percent, and that decline could become permanent, an analysis from Raleigh-headquartered Beroe, Inc. found.
“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,” said Anusree Mohan, senior analyst at Beroe, in a statement. “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.”
Prior to the onset of the global coronavirus pandemic, business travelers represented about half of airline revenue, or about 1.7% of total global GDP, according to Beroe.
But with businesses seeking cost-saving measures, and integrating virtual meeting tools to conduct meetings, Beroe analysts are predicting short- and long-term effects on air travel.