The first tremors of economic slowdown are beginning to be felt in the travel industry: even though Disney Parks had a record quarter, the overall parent company had a disappointing quarter in its other businesses and is now planning a hiring freeze, job cuts and other expense cuts. As part of that, CNBC reports that in a memo sent by Disney CEO Bob Chapek today, the company is cutting back on business travel as well as travel for events and internal meetings.
From the memo: “In the immediate term, business travel should now be limited to essential trips only. In-person work sessions or offsites requiring travel will need advance approval and review from a member of your executive team (i.e., direct report of the segment chairman or corporate executive officer). As much as possible, these meetings should be conducted virtually. Attendance at conferences and other external events will also be restricted and require approvals from a member of your executive team.”
This comes as tech companies are going through a blistering round of layoffs that are starting to have first order and more downstream effects in the travel sector.