Consolidation In Business Travel Could Become A Necessity

The COVID-19 pandemic has had a devastating effect on the business travel industry. The international sector was by far the worst affected, facing a 75% drop in total trips. Domestic business tourism also suffered, as a result, the global business travel industry has lost billions in client revenue, creating an overcrowded marketplace among business travel agencies.

The reduction in traveler demand has resulted in business travel agencies fighting for survival.

As organizations have scaled, so have business travel agencies. Corporate clients, once worth millions in revenue, are worth a fraction of the value now. Many industry commentators have argued that this is just a momentary shift. However, many business travel clients have adapted to the pandemic by becoming more efficient and innovative, developing new ways to communicate, likely leading to a reduction in travel demand for the long-term. Communication tools like zoom, Teams and Citrix have helped companies maintain employee engagement, collaboration throughout the pandemic resulting in many companies questioning their corporate travel budgets. A recent pool conducted by Globaldata 43% said that corporate would be low for next 12 month.