Research Shows Business Travel Will Return ‘In Full Force’
For every $1 invested in business travel, firms realized $12.50 in incremental revenue.
When business travel resumes, it will do so “in full force,” according to a report from CBRE Hotels Research called “The Future for the Lodging Industry: When Will Convention and Group Demand Come Back?” The study showed that business travel may look different and may potentially include additional family members such as working spouses or school-age children completing virtual learning during the traditional workday. Although many office-using professions are able to maintain productivity through heavy reliance on telecommunication, said the report, economic evidence for in-person interaction will drive post-COVID group hotel demand. From every $1 invested in business travel, it said, firms realized $12.50 in incremental revenue. Additionally, Oxford Economics research cited in the report found that elimination of business travel reduces profits by 17% in the first year. A more remote workforce will demand more opportunities to connect in person with colleagues, clients and others in their network, and conferences and conventions are ripe to benefit from the increased demand. The desire for face-to-face communication and other humanistic features of traveling to interact with people, said the report, “will drive a strong recovery for business travel during the post-COVID-19 period.”