Illuminated tunnel in the United Airlines terminal, O’Hare International Airport, Chicago Illinois.
Andrew Woodley | Universal Images Group via Getty Images
Spending on business travel may not recover to pre-pandemic levels until sometime in 2026 – two years later than previously expected – as inflation, the lack of ‘workers and geopolitical issues will slow the sector’s rebound, according to a new industry forecast.
Spending by business travelers, a key source of revenue for airlines and hotels, some of the hardest hit industries in the pandemic, has been on the rise this year. Worldwide spending is expected to increase nearly 34% in 2022 to $933 billion, according to the Global Business Travel Association’s annual report and forecast, published Monday.
That’s still a far cry from the more than $1.4 trillion in business travel generated in 2019, before the Covid pandemic. One reason is that high inflation is driving up travel costs, which the industry group said last week would continue to rise until 2023.
For example, this year through July, revenue per available room in US hotels was $92.36, up from $88.05 over the same period in 2019, according to preliminary data from the data firm. of hotels STR. Occupancy was 63%, down from almost 67% in 2019.
The report predicts a 42% increase in business travel spending in the United States this year from 2021, to nearly $213.4 billion. US airline and hotel executives touted the return of business travelers this year after many companies halted travel during the pandemic.
