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According to new research issued in late April by the Global Business Travel Association (GBTA), travel professionals see some signs of optimism and recovery on the horizon. The study found that most companies are planning a recovery for 2020 with one in three planning for a recovery within three months.
To understand the coronavirus’s effects on business travel, GBTA conducted its sixth poll among membership from April 17-22. GBTA received responses from almost 1,600 member companies worldwide—which is key to understanding those data. The virus has impacted the globe, but at different rates. Note: At the time of the poll, total U.S. cases of COVID-19 were below the 1 million threshold and deaths had not yet surpassed 50,000, according to CDC data (as of May 6: total U.S. cases are 1,193,873; total U.S. deaths are 70,802). View the entire poll results here.
“The global business travel industry remains at a standstill, but we are finally beginning to see some light at the end of this very long tunnel,” said GBTA CEO Scott Solombrino. “GBTA members are planning their post-coronavirus recovery plans and most expect to be operational in 2020. This is a positive sign. The majority of GBTA member companies expect domestic business travel to resume in the next two to three months and most expect employees will be willing to travel. We have waited a long time for there to be optimism around the pandemic in our industry, and it should continue to grow as we get closer to halting the spread of this disease.”
Among the poll’s key findings are:
- Most companies are creating a recovery plan in 2020. One-third (35%) of GBTA members say they plan for their company’s post-coronavirus recovery plan in three months or less, while a quarter (27%) say they plan for a post-recovery in six to eight months. In addition, only one in 10 are planning for recovery in 2021, while one in four (28%) report they do not know.
- Among GBTA members who report their company has canceled at least some domestic business trips, six in 10 (62%) say they expect domestic travel to resume in the next two to three months. One in five report they expect domestic travel to resume in the next six to eight months (18%) or are unsure (19%).
- GBTA European members (74%) are more likely than members based in North America (58%) to expect domestic business travel will return in two to three months. In addition, members based in North America (21%) are more likely to be unsure when domestic business travel will resume compared to members based in Europe (12%).
- Eight in 10 European members expect international business travel will resume in two to three months (33%) or six to eight months (47%). Two-thirds of GBTA members in North America expect international travel to resume in two to three months (26%) or six to eight months (38%).
- A majority of GBTA members (88%) expect employees will be willing to travel once restrictions are lifted. GBTA members from North America (90%) are more likely than members from Europe (83%) to expect their employees will be willing to travel after restrictions are lifted.
- Looking at what it will likely take GBTA members to feel comfortable with employees traveling for business, many information resources are perceived as being important including: a decline in new infection rates (92%), governments lifting travel restrictions or advisories (91%), guidelines or statements from public health agencies such as the WHO or CDC (90%), effective anti-viral treatments (89%), removing stay-at-home lockdowns (88%), a new Coronavirus vaccine developed and available to employees (85%), advice from a risk management firm/consultant (e.g., Worldaware or International SOS; 60%), and other companies allowing travel (49%).
- One in five GBTA buyer members note their company has reduced staff or laid off (21%), furloughed (21%), or cut employee salaries (20%) as a result of the coronavirus.
GBTA supplier member optimism about the industry’s path to recovery vary. One in five (19%) say they are more optimistic than they were last week, while six in 10 (57%) say they feel the same as they did last week. One-quarter (24%) feel more pessimistic about the industry’s path to recovery than they did the week prior.
- GBTA supplier members note bookings from corporate customers have remained the same (41%) or decreased (49%) in the past week.
Some GBTA members report their company does allow some essential travel. One-third (35%) say while their company has canceled or suspended all non-essential trips but allows some essential travel.
- GBTA member sentiment varies concerning the impact COVID-19 has had on the industry. When asked about layoffs/furloughs in the corporate travel industry, four in 10 feel the worst has already happened (42%) while an equal number feel the worst has yet to come (41%). GBTA members in North America are more likely to feel the worst has already happened when it comes to layoffs and furloughs (47%) compared to members based in Europe (30%).
- There is more consensus when thinking about canceled flights, with three in four (77%) GBTA members stating the worst has already happened compared to one in 10 (15%) who feel the worst is yet to come.
- Six in 10 (62%) GBTA members feel the worst has already happened concerning hotels suspending operations compared to one in four (26%) who feel the worst is yet to come. GBTA members based in North America (64%) are more likely to feel the worst has already happened regarding hotel suspensions compared to members based in Europe (53%).
- GBTA members are more pessimistic about revenue loss for travel companies. More than half (56%) feel the worst is yet to come in terms of industry revenue loss while one-third (29%) feel the worst has already occurred.
- GBTA member companies have not opened international (98%) or domestic (93%) travel as companies continue to cancel and/or suspend almost all business travel regardless of destination. In fact, almost all GBTA member companies (57%) report they have suspended or canceled all business travel across the board.
- Business travel remains halted across the globe. Companies continue to cancel or suspend almost all business travel regardless of country or region. GBTA members report their companies have canceled or suspended “all” or “most” business trips to:
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- China: 99% canceled or suspended
- Hong Kong: 99% canceled or suspended
- Taiwan: 99% canceled or suspended
- Other Asia-Pacific countries (e.g., Japan, South Korea, and Malaysia): 99% canceled or suspended
- Europe: 99% canceled or suspended
- Middle Eastern countries: 98% canceled or suspended
- Latin America: 97% canceled or suspended
- Canada: 95% canceled or suspended
- United States: 95% canceled or suspended
Methodology: GBTA conducted a poll of its members across the globe from April 17-22, 2020. An email invitation was sent to 5,638 travel professionals, and 1,557 responses were received.
Visit gbta.org for more information.
[05.04.20]
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The Global Business Travel Association (GBTA), the voice of business travel industry, has appointed current Executive Director and Chief Operating Officer Scott Solombrino as Chief Executive Officer following a unanimous vote by the GBTA Board of Directors.
Prior to taking an executive role with GBTA, Solombrino was the longtime president and CEO of Dav El/BostonCoach, a position he left in 2019 after 43 years. During his time as an operator, he had been a staunch force for the advancement of the ground transportation industry internationally, including through his work with the NLA.
“We are thrilled to equip our operating leader with the proper tools to guide the industry out of the COVID-19 worldwide pandemic," said GBTA President Bhart Sarin. "Now GBTA's principle spokesperson will have an even stronger position to advocate for the return of business travel.” GBTA represents professionals in all facets of business travel, from airlines and hotels to chauffeured transportation.
According to a press release from GBTA, the association has built upon its strengths by replenishing its financial reserves, refocusing advocacy efforts in the United States and Europe, and strengthening relationships with members and sponsors under Solombrino's dedicated leadership.
“One year ago, Scott offered the GBTA Board a vision of financial security, upscaling advocacy, and a laser focus on the member; it is because of that vision that GBTA is surviving the crisis and will be there for members when we emerge to rebuild our industry," said Dorothy Dowling, president of the GBTA Allied Leadership Council.
GBTA members can anticipate the Association will be better positioned to influence public policy and deliver positive outcomes for its buyers and sponsors.
“We are very excited to have Scott as CEO of GBTA," says Chairperson of the Board Christle Johnson. "Scott has brought us energy, strategy, sensitivity, and proven leadership; having discussed at length, benchmarked against peer organizations, and vetted by legal counsel, the time was right to make the appointment.”
Visit gbta.org for more information.
[05.06.20]
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The National Limousine Association (NLA) will be holding a No Operator Left Behind (NOLB) Virtual Summit on May 12 starting at noon ET on the NLA’s Facebook page. The event will be hosted by NLA President Robert Alexander of RMA Worldwide and Bill Faeth of Limo University, and will include several guest speakers who will cover a variety of topics to be announced. NOLB is an added-value benefit for NLA members who are smaller operators (19 vehicles or fewer) to offer support and education so that they can thrive.
Initially, May 12 was designated by the NLA as No Operator Left Behind Day, and plans were in place to hold an in-person event featuring education from guest speakers. With COVID-19 putting the world on lockdown, the event was shifted to a Virtual Summit, which Faeth says will offer four hours of content.
The summit will offer a number of guest speakers, including U.S. Travel Association President & CEO Roger Dow and Global DMC Partners President & CEO Catherine Chaulet, both of whom were announced in a recent Facebook Live session. NLA Executive Director Kyle Hammerschmidt has said that they are anticipating guests from vertical markets—such as hotels, DMCs, wedding and retail specialists, as well as other travel industry experts—to take part in the online event.
The NLA describes No Operator Left Behind (NOLB) as a program built by Limo University Founder Bill Faeth and past NLA President Gary Buffo in conjunction with the NLA specifically aimed at smaller operators. It is part of a multi-pronged initiative that aims to arm those operators with the education and support they need to thrive, while connecting them with larger NLA member operators who have the experience to offer guidance.
“In the absence of the ability to gather in person, the No Operator Left Behind Virtual Summit is what we envision as the next best thing,” says Alexander. “We all need to gather information, learn, and share ideas now more than ever as we determine what our next steps are going to be and how our world has been forever changed. We are assembling a fantastic panel of experts from all over the travel industry and with Bill Faeth producing, we know it’s going to be an event you won’t want to miss.”
The event is being sponsored by Grech Motors, Chosen Payments, Jaco Limousine, Limo & Bus Compliance, and Limo Anywhere.
Update (5.8.20): Additional speakers have been added to the lineup. They include CEO Jay Karen of National Golf Course Owners Association, Senior Marketing Planner Angela Layton of the National Association of State Boards of Accountancy, Dr. Lucy McBride of Foxhall Internists, CEO & Founder Sara McCall of Stunning and Brilliant Events, and Stuart Ross of Red Light Management.
Click here for information on how to join the event. The NLA is also continuously updating its coronavirus resource page, available here.
[05.05.20]