Waiting on corporate travel

Like Anthony Limousine, Bella Luxury relied on corporate customers for most of its business before the pandemic. Ogada estimated the corporate side accounted for 75% to 80% of his business.

“That’s the bulk of the business,” he said. “That business has been dead since last March, and there really isn’t any sign of it coming back soon, to be honest with you. The people I’ve talked to, they have no idea when they’ll start going out again. That’s a tough part. That’s really the bread and butter. That’s what keeps the vehicles moving during the week, so without that, that’s a big chunk of business that is missing.”

Now, Ogada and other limousine business owners are watching to see what companies will do. Will they send their corporate leaders out like they used to, or has Zoom or Microsoft Teams become a permanent part of their routine? And if the corporate travel market is coming back, when?

The lack of business travel during the pandemic is a big reason why City Center Investment Corp. decided to keep the Renaissance Allentown Hotel closed for more than a year. The full-service hotel, which has meeting spaces, a 4,100-squarefoot ballroom and an upscale restaurant, reopened April 1.

In its State of the Hotel Industry report released Jan. 21, the American Hotel & Lodging Association forecasted that business travel will begin its slow return in the second half of this year. But, the report cautioned, demand for business travel isn’t projected to return to pre-pandemic levels until 2023.

First, many businesses have to return to actual offices. Alexander, of the NLA, said he believes many companies are eyeing September, giving the vaccine rollout more time and, potentially, coinciding with kids returning for a more normal school year. He pointed to a recent announcement from Wells Fargo targeting a Sept. 6 return to the office for employees who are still working from home.

Once offices reopen, Alexander sees office visitors being allowed soon after, sparking corporate travel.

While some corporate business may be lost forever, Onorata believes many companies still value the face-to-face interaction needed to close a deal or complete a training. Those relationships with corporate leaders also are crucial for limousine companies, so those executives and their families turn to a familiar name when planning a personal trip.

“I think it will come back,” Onorata said. “It will come back a lot slower. Some of it will be gone forever, because some companies realize, ‘Well, we saved all this money.’ But some of that will come back, and we hope sooner than later.”