“Slow but steady” recovery

THE latest iteration of Flight Centre Travel Group’s global State of the Market study (TD 22 Sep) has found that 50% of corporate travel clients across the world already have employees travelling or making bookings to travel in the near future.

The study conducted by FCM’s 4th Dimension consulting arm consisted of in-depth interviews last month with 250 of FCM’s multinational large scale clients, as well as Corporate Traveller and Flight Centre Business Travel SME customers across 60 countries.

The combined results of the ongoing research between Apr and Aug this year shows more than 90% of businesses indicated plans to travel domestically as well as to short-haul international destinations within three months of governments reopening borders and lifting restrictions.

However, the number of trips taken is likely to be lower, with only a quarter of businesses planning to return to their preCOVID-19 levels for domestic travel during 2021.

Before the virus, the average number of business trips annually per traveller was six to eight, with the results showing this is likely to halve through until 2023.

Clients also still have long-haul travel plans on hold indefinitely, with businesses in Australia, China, New Zealand and the USA less likely to have long haul international plans for next year.

29% of respondents from China said they did not expect to travel long-haul, compared to 22% of respondents in NZ, 16% in Australia and 7% in the USA.

The industries which have continued to travel or recommenced travel the fastest were mining and wholesale, followed closely by construction and food service businesses.

Flight Centre Travel Group MD Australia James Kavanagh said the results showed the ongoing shifts in the business travel landscape.

“While it’s positive to see such a high percentage of companies that have recommenced travel, it is clear that uncertainty will remain for some time.”

The report estimated a 23% cut in estimated corporate travel budgets in 2021, with more than a quarter of clients surveyed reporting a significant financial impact due to COVID-19.

The full report is available for download at fcmtravel.com.