Despite the euphoria around the return of international business travel, a data analytics firm has predicted a gloomier outlook.
GlobalData has said it is unlikely to recover until at least 2026.
It’s singled out the complexity of business travel, which it said still faces several added layers of complexity that affect consumer behaviour, purchase decisions, and general operations.
“Despite some encouraging signs of revival for the overall travel industry in 2022, the business travel sector is witnessing a slower-than-expected recovery, particularly regarding international travel,” it reported.
Those challenges will persist over the next four years, it said, adding that another prominent disruption was the rising cost of living fuelled by the ongoing energy crisis, due to “low energy reserves due to the pandemic and the current geopolitical situation between Russia and Ukraine.”
These increased energy costs are putting further pressure on businesses that are seeing operational overheads soar, with the result that business travel is no longer a priority for companies, it claimed.
Its Tourism Demands and Flows Database also found that international business travel fell by 78.4 percent in 2020, before falling a further 7.9 percent in 2021.