Around 230 million international passengers - including intra-Europe - in 2020, compared with more than 743 million a year earlier. Like the rest of the world, Europe's tourism industry will have suffered the repercussions of the Covid-19 crisis. In its report on the state of tourism in 2020 and the future prospects for this activity, the European Travel Commission ETC takes a closer look at the potential evolution of business travel. And its analysis defies the gloomy predictions of other reports.
In 2020, the pandemic transformed travel habits in the workplace and in the management of business trips. The rise in communication technologies, virtual meetings and a new awareness among companies of the environmental impact of their travel are all having an impact on travel. This has raised questions about the future of business travel.
face-to-face meetings will remain a key element of business relationships
However, the ETC report cultivates theoptimism. It points out that forecasts forcollapse in business travel are unlikely to materialise, because face-to-face meetings will remain a key element of business relationships.
ETC is based on a SAP Concu reportr, published in July 2020. It highlights that 59 % of business travellers worldwide expect to have a positive feeling about their next business trip after the covid epidemic. 92% of business people also consider the reduction in travel to be harmful on their company's activity. This reduction would have consequences for the conclusion of contracts and for prospecting. The ETC estimates that the slowdown in business travel volumes will continue to be felt until 2022.
The Commission forecasts a recovery in domestic business travel by 2023 and international business travel by 2024.. The ETC analysed previous economic crises where business travel activity had contracted. For example, following the global financial crisis of 2008-2009, spending on international business travel fell by 17 % compared to 6% for leisure travel. But by 2011, business travel volumes had returned to pre-crisis levels. This was followed by a period of uninterrupted growth until 2019.
The significant added value of business travel in Europe
Research carried out by Oxford Economics in 2013 showed that every dollar invested by companies in business travel during the 2008-2009 financial crisis brought in 9.50$ in revenue and generated 2.90$ in profits. This confirms why demand for business travel has remained so strong. And such a phenomenon is likely to recur once the health crisis has been brought under control.
In Europe, business travel generates a significant proportion of travel volumes. According to ETC, the share of the business travel market in total travel expenditure in 2019 was almost 60% in Romania, more than 40% for Finland, the Netherlands and Sweden and more than 30% in Poland, Slovakia and Switzerland. The ETC notes that although the market share of business travel is small in major tourist countries such as France, Spain and Italy, the volume of expenditure is nonetheless significant. It represented 7.4 billion in spending in France in 2019 for example. And this, despite a market share of less than 20%.
Europe remains more advantaged than other continents. Despite the restrictions currently being imposed in most countries in the face of the resurgence of the pandemic, there are always opportunities for business travel. Particularly within the European Union or the Schengen area. In 2021, however, the volume of business travel is likely to remain significantly lower than in 2019.
While some meetings will now only take place via the online technologiesETC believes that to a certain extent face-to-face meetings will return - including at major events. Business travel allows for more personal interaction and minimises the risk of miscommunication.. They also foster a better understanding of the cultural differences between partners. In short, the very essence of travel...
