What Does the Future of Global Business Travel Look Like?

2 Treasury and Trade Solutions Given continuing uncertainties (and levels of infection) in various markets, the initial stages of recovery are therefore likely to focus on domestic rather than international travel. Just 48% of Citi survey respondents said that when travel resumes, both domestic and international travel will be the priority. Where possible, travelers (and corporates) may seek to make domestic journeys via car or train rather than airplane. Similarly, corporate travel is likely to resume in phases based on the importance of the activity to the company. Business-critical travel, such as C-suite executives meeting with investors or fulfilling legal obligations, is expected to return within the next six months; sales and other travel directly connected to revenue will come back over the course of a year; while business-as-usual travel, such as conferences, could take as long as two years to recover. Given the success of virtual events in recent months, there may be doubts over the future of some conferences, thought the networking value of such events is sure to result in the eventual return of most. A new normal While business travel will undoubtedly return, like many other aspects of life it will be different in character. It may be the case that certain countries or cities will be periodically off limits during new waves of COVID-19. More prosaically, the various burdens placed on travelers will be added to, with some countries requiring evidence of a recent test or completion of online or paper questionnaires 48 hours in advance of travel to determine whether travelers need to be tested for coronavirus on arrival. Given such requirements and ongoing risks, many businesses will ere on the side of caution in the short term. This decision could be reinforced by a possible short- term increase in travel costs as airlines and airports adapt to comply with social distancing requirements (some airlines are leaving alternate seats unoccupied to reduce risks, for instance) and a possible decrease in capacity as a result of business failures. There is some evidence that attitudes could be changed by the experience of the pandemic over the longer term. Almost three-quarters of respondents to Citi’s survey said that after social distancing measures end, their organization still plan to limit business travel. Habits adopted during lockdown, such as increased use of virtual meetings and conference calls, could become ingrained and therefore continue for the foreseeable future, especially for some types of business interaction seen as non-critical. A total of 83% of Citi survey respondents said they would encourage virtual meetings after social distancing measures end, while 65% said they plan on limiting the number of people that can attend meetings. The change in the mindset of those procuring business travel may result in buyers becoming less focused on price for the fewer numbers of executives at corporations who do travel. Instead, buyers will look to carriers that can provide safety assurances (about the quality of onboard air filters, for example) and direct services to minimize traveler time spent in airports and limit health risks. Companies may also reconsider if travelers should use services such as ride- sharing or public transports for intra-city travel, given that travelers may be exposed to others during these trips. If they do reconsider, this could potentially drive the total cost of travel up for companies. Travel buyers are also likely to seek guarantees regarding cleanliness from hotel chains (the American Hotel & Lodging Association has released industry-wide guidelines called Safe Stay that have After social distancing measures end, does your company plan on limiting business travel? 28% No 72% Yes Who is responsible for making the decision as to when travel can resume at your organization? 47% CEO 8% Corporate Travel 8% Country Management 8% Human Resources 28% Risk and Compliance