Global business travel won't see full recovery until 2026: report

Inflation, supply chain problems and ongoing Covid-19 lockdowns in China are among the factors conspiring to delay a full recovery in business travel to its pre-pandemic level

By AFP

Published: Aug 16, 2022 11:43:15 AM IST

Updated: Aug 16, 2022 12:03:13 PM IST

This photo taken on June 18, 2022, shows inbound passengers waiting to be taken to quarantine-designated destinations from the Beijing International Airport in Beijing. Image: Leo Ramirez/AFP

New York, United States: Inflation, supply chain problems and ongoing Covid-19 lockdowns in China are among the factors conspiring to delay a full recovery in business travel to its pre-pandemic level, according to an industry forecast released Monday.

The Global Business Travel Association now projects business travel will regain its 2019 level of $1.43 trillion in mid-2026, 18 months later than predicted in the group's last forecast in November.

"Recovery has hit some headwinds," GBTA said in a statement that outlined a gradual improvement from a 2020 low of $661 billion until reaching $1.47 trillion in 2026. "The factors impacting many industries around the world are also anticipated to impact global business travel recovery into 2025," said Suzanne Neufang, the association's chief executive.

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The group said recovery was "short-circuited" in late 2021 and early 2022 by the Omicron variant of Covid-19, but that trips surged after that once Covid cases fell.

Major obstacles to a full recovery include high energy prices, labor shortages, Covid lockdowns, regional impacts due to the war in Ukraine and sustainability concerns.