Skift Breaking News Blog

Short stories and posts about the daily news happenings around the travel industry.

Business Travel

International Business Travel Unlikely to Recover Until 2026 — Report

3 weeks ago

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.

Hotels

Marriott Suspends Operations in Russia

1 month ago

Marriott International stated Friday that it is suspending operations in Russia following new U.S., UK, and European Union sanctions over the Ukraine war.

In March, despite operating in Russia for the last 25 years, Marriott International closed its corporate office in Russia and announced it would suspend opening new hotels — but the steps fell short of the overall suspension that Marriott announced today.

“As we take steps to suspend hotel operations in Russia, we remain focused on taking care of our Russia-based associates,” Marriott stated. “Since the war began, we have supported associates in Ukraine, Russia and across the region, including securing employment with Marriott outside of countries directly affected by the conflict. We have deployed $1 million in internal disaster relief funds for associates and their families to assist with resettlement aid, including food vouchers, transportation assistance, medical, and legal support.”

Marriott operated 28 hotels in Russia that are owned by third-parties.

Many travel firms withdrew from Russia at the onset of its invasion of Ukraine, but many major hotel chains kept operating.

Tourism

Egypt on Track to Double Tourism Revenue to $12 Billion

1 month ago

Tourism revenues are expected to reach between $10 billion and $12 billion for Egypt’s fiscal year, which runs from July 1 to June 30.

Revenue was $6 billion to $7 billion in 2021, its deputy tourism minister said last yearAccording to reports, finance minister Mohamed Maait also said the war in Ukraine was unlikely to have an impact. This is despite the destination being popular with both Russian and Ukrainian tourists.

Its recent strategy to target more business from Western Europe, including the UK, Germany, Spain, France and Italy, as well as Hungary and Gulf Arab countries, may be working.

Meanwhile, the minister said the Suez Canal was expected to generate revenues of $7 billion by the end of the current fiscal year. The shipping route between Europe and Asia is one of Egypt’s biggest sources of foreign currency.

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