Last Updated on June 19, 2023
The COVID-19 pandemic has drastically affected the tourism and travel business industry as well as the entire world. We can see people opting to get vaccinated to travel, and in the realm of economics, we see more people who buy Bitcoin and indulge in cryptocurrency investments. A real game-changer.
According to Bill Gates, 50% of the corporate travel business will go away. However, there is still hope that the sector will recover again soon. In this article, you will find out if the travel business will recover soon.
Global Travel Business vs COVID-19 – Feasible Ways to Avoid an Utter Collapse
Due to the pandemic, the travel business sector is expected to bet on seizing the time available among their employees to seek the recycling of knowledge and specializations.
In this context, online courses, workshops, and lectures will likely occupy most of the time of the staff in the travel business industry.
Plus, companies in this segment will rely on the hybrid model to ensure their activities continue while reducing the concentration/crowding of people. The hybrid model consists of merging face-to-face events with remote participants via web platforms.
Various events, including lectures, seminars, congresses, and even exhibitions have used the hybrid model to guarantee they will still active during the COVID-19 pandemic, as long as they respect the rules established by the US Center for Disease Control and Prevention.
Currently, most companies in the travel business industry are optimizing the scales of their employees to ensure social distancing for their staff and customers.
While it is not possible to solve everything online, companies need to select a group of employees to execute the necessary activities. Plus, all trips tend to have the shortest possible duration to reduce the risk of spreading the virus.
Blockchain Technology and Innovative Solutions to Travel Business Industry
Blockchain technology has several advantages that can help companies in the travel business sector to recover from the economic damage caused by COVID-19.
Each passenger’s information is unique, so a reliable database built on an immutable ledger (blockchain) can surely shorten or even remove the need for many identification proceedings in airports, hotels, and other facilities.
The use of blockchain technology will enable a new experience for passengers throughout the trip, from the time of booking, boarding, check-in to the time to check out and leave.
Additionally, the use of smart contracts, crypto wallets, and digital assets will bring solutions such as:
- Facilitating loyalty programs
- Improving baggage tracking
- Optimizing agreements / contracts through smart-contract technology
- Providing seamless payment methods
- Facilitating cross-border value transfers
- Avoiding contact with paper notes and credit/debit cards, thus reducing the risk of contamination
Furthermore, investing in such cryptocurrencies focused on solving these problems could be a good investment opportunity, because the cryptocurrency prices of such could increase.
Travel Business Forecast – Experts Believe in Full Recovery Until 2025
Recently, the Global Business Travel Association (GBTA) launched the BTI Outlook, the entity’s annual report with a detailed analysis of the travel business in 2020, with forecast projections for 2021 and beyond.
In its 12th edition, the in-depth report includes a study on spending and growth on corporate travel, covering 75 countries around the world.
Currently, the global GDP is forecast to have decreased by 4.4% in 2020, an unprecedented drop when compared to a ghastly 0.5% recorded during the 2008 economic crisis.
Accordingly, unemployment and firings associated with the travel business industry have been extensive.
The loss of global working hours during 2020 compared to the end of 2019 was equivalent to 400 million full-time jobs in the segment that encompasses hotels, airlines, airports, transportation, restaurants, and other suppliers.
Nonetheless, the same report demonstrates that the travel business industry has grown for ten consecutive years, with an average growth rate of 5.1% per year, which means the impact of the pandemic on business travel has varied by region.
In 2022, BTI Outlook foresees a huge acceleration in the travel business sector, including a significant increase in activities such as group meetings and international business travel.
While the annual growth in the segment’s spending is expected to decrease in 2023, it is projected to remain well above the historical average growth rate of 4.6%.
By the end of 2024, annual spending is expected to reach approximately US$ 1.4 trillion, almost equaling the 2019 pre-pandemic revenue peak of US$ 1.43 trillion.
Final Thoughts
Even though the current scenario may seem somewhat discouraging, the demand for corporate travel is still extremely high in the entire world – a fact impossible to deny.
Consequently, while some people think that the travel business industry will disappear, the reality is that is impossible to extinguish such an industry within a short time.
Considering the analytics presented in the GBTA BTI Outlook, the experts of the segment believe in a significant recovery in the travel business segment in less than a decade.
As companies continue to adapt the established model with new practices and technological innovations, the travel business sector will start to gain momentum again.
