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As signs of recovery continue in the business travel sector, travel procurement professionals are prioritizing the health and safety of employees according to a new poll released on July 16 by the Global Business Travel Association (GBTA). More than half of travel buyers reported their company has changed its travel policy and 70 percent characterize the policy changes as being ‘somewhat’ or ‘a lot.’ When asked what travel program changes have been made due to the pandemic, instituting new rules about pre-trip approval (53 percent), having more frequent or detailed pre-trip communications or briefings (35 percent), collecting health information (virus exposure or preexisting conditions) from employee travelers (24 percent); and clarifying or changing rules about ticket credits/unused tickets (22 percent) were cited most frequently.
Consistent guidelines and standards continue to be critically important across all verticals in business travel; however, there is a need for more communication of safety protocols. While a majority of GBTA companies (68 percent) said they have enough information on supplier cleaning and sanitation practices, one-quarter said they would still like more (24 percent). In addition, half (49 percent) felt they have enough information about operational changes such as flight rescheduling or check-in procedures, but one-third (37 percent) said they would like more information.
Despite the rising infection rates in some parts of the world, companies are still considering a return to travel. Half (49 percent) are considering resuming all travel (regardless of country or region) in the near future, although do not currently have definite plans. Only one in five (18 percent) GBTA member companies report they do not plan to resume all travel in the near future.
|
Region/Country |
Plan to Resume Travel in Near Future (1-3 months) |
Considering Resuming in Near Future, but No Definite Plans | Do Not Plan to Resume in Near Future | Not Sure |
| China | 10% | 32% | 38% | 21% |
| Hong Kong | 9% | 32% | 37% | 21% |
| Taiwan | 10% | 31% | 35% | 24% |
| Asia Pacific (minus China, Hong Kong, and Taiwan) | 11% | 36% | 33% | 20% |
| Europe | 17% | 42% | 23% | 18% |
| Latin America | 8% | 37% | 35% | 21% |
| United States | 24% | 41% | 21% | 14% |
| Canada | 22% | 39% | 22% | 17% |
| Middle East/Africa | 11% | 34% | 34% | 21% |
| All International Travel | 10% | 43% | 29% | 18% |
| All Domestic Travel | 34% | 40% | 12% | 13% |
| All Travel | 14% | 49% | 18% | 19% |
Domestic and essential business travel is likely to resume first. Among respondents who reported their company has canceled at least some domestic business trips, four in ten (44 percent) expect domestic travel to resume in the next 2-3 months. One in three expects domestic travel to resume in the next 6-8 months (34 percent) or are unsure (15 percent). GBTA members in Europe (77 percent) are more likely than members in North America (37 percent) to expect domestic business travel to return in the next 2-3 months.
Among GBTA companies that have canceled at least some international business trips, one in ten (16 percent) said they expect international travel to resume in the next 2-3 months. Two in five expect international travel to resume in the next 6-8 months (40 percent) and one in four are unsure (25 percent) as to when international travel will resume. GBTA companies based in Europe (33 percent) are more likely to expect international business travel to resume in the next 2-3 months than are members based in North America (13 percent).
The return to travel from a supplier perspective follows a similar geographical divide, with more travel suppliers and travel management companies (TMCs) in Europe reporting an increase in bookings (50 percent) than in the U.S. (27 percent). Note: Cases have been trending upward in the U.S. since late June while staying flat in many parts of Europe and Asia. This poll was conducted July 7-13 and included respondents from around the globe.
Interim Executive Director of GBTA Dave Hilfman
“The slow recovery of business travel continues with a noticeable uplift in Europe. The U.S. recovery has remained largely static, probably in line with new COVID-19 cases that dominate our headlines, slowing progress,” said GBTA Executive Director Dave Hilfman.
“GBTA is continuing to support members to introduce consistent health and safety measures for every travel vertical, a key requirement to enable travel programs to resume. As we have seen from the poll results, buyers have had to adapt to the changing demands, significantly altering travel policy to reflect the necessary increase in health and safety protocols. GBTA is working with our buyer members to help navigate the new norm and road to recovery.”
When asked how COVID-19 had impacted their organizations, 81 percent of travel suppliers have furloughed employees and 78 percent have reduced or laid-off staff. Half (53 percent) of companies who have furloughed employees have returned some or all staff to work in some capacity.
Most respondents felt the business travel industry has experienced the worst in terms of canceled flights (73 percent) and hotel operations suspension (66 percent). However, one in four said they believe the worst is yet to come in terms of layoffs/furloughs and revenue loss (44 percent each).
Methodology
The poll conducted by GBTA is the 9th poll of the membership to measure the effects of COVID-19 on business travel. The poll was fielded from July 7-13, 2020, and received 2,167 responses from member companies globally. View the entire poll results here.
Previous GBTA poll results can be viewed here, here, and here.
Visit gbta.org for more information.
[07.16.20]
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The University Transportation Research Center (UTRC) at The City College of New York has been analyzing how the COVID-19 pandemic has already changed every aspect of mobility. In a new webinar series produced by UTRC and sponsored by the International Association of Transportation Regulators (IATR), speakers from the leading transportation trade groups discussed the unique and unprecedented challenges posed by the pandemic, and what they expect as they navigate reopening and ensuring a safe future for all riders. Held July 9 and moderated by UTRC Transportation Technology Chair Matt Daus of Windels Marx, The Reinvention of the Taxicab & For-Hire Vehicles Industries featured panelists Ira Goldstein of the Black Car Fund (BCF), Brendan Sexton of the Independent Driver Guild (IDG), Cira Angeles of Livery Base Owners, Michael Woloz of the Metropolitan Taxi Board of Trade (MTBOB), Avik Kabessa of the Livery Round Table, and Eric Rothman of the Drivers’ Opportunity Service Association (DOSA).
NYC was a major epicenter of the outbreak and had to pivot quickly, which forced city officials and trade group leaders to solve problems they never faced before. Transformed overnight from the city that never sleeps to the city that is sheltering in place—shuttering the region’s ubiquitous subway system at one point and rendering the normally bustling Times Square a ghost town—the trade groups estimate that ridership was down 85-90 percent across all sectors. With all of those vehicles out of service, it created new situations: where to park them so insurance could be reduced. The organizations leaped into action to help drivers and bases tap into federal assistance or unemployment, get access to medical professionals, and even offer legal advice free of charge.
Beyond those challenges, drivers were a lifeline for many essential services, including delivering food, medical supplies, and packages during the shutdown. For those who did continue to work, it became critical to protect them and their potential passengers. Handwashing is crucial to preventing the spread, but drivers don’t have easy access to bathrooms or running water over the road. Goldstein reports that in conjunction with the IDG, BCF was able to assemble and distribute more than 20,000 kits containing masks, hand sanitizer, and gloves to drivers and bases. He says that it was one of the most-appreciated programs in all his years at the Fund.
Modes of transportation had been shifting long before the pandemic as the region learned to strike the right balance between established transportation providers and the aggressive impact of TNCs. Before COVID presented its own mental wellness issues, an uptick in medallion driver suicides starting two years ago rocked the taxi community. Both BCF and IDG had established a wellness program that continued to offer drivers a chance—virtually and over the phone—to seek assistance and form a bond with others who were also struggling.
As the city awaits further guidance from Mayor Bill de Blasio, the trade groups continue to advocate for those they represent.
The webinar is available on demand, which can be accessed here.
[07.14.20]
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Even though Congress is in recess until July 20, leaders and members of industry associations are hard at work behind the scenes making sure that lawmakers don’t lose sight of the pandemic’s effect on transportation services. Right before the break, two bills were introduced that could provide some much-needed relief to operators across the spectrum.
More than 100 associations and organizations, including the National Limousine Association (NLA), signed a letter in support of S. 4117, tentatively called The Paycheck Protection Program Small Business Forgiveness Act, which would automatically forgive loans of less than $150,000 upon the borrower’s completion of a simple, one-page forgiveness document. According to the letter, “loans of $150,000 and under account for 86 percent of total PPP recipients, but less than 27 percent of PPP loan dollars. Expediting the loan forgiveness process for many of these hard-hit businesses will save more than $7 billion and hours of paperwork.” The bill was sponsored by Senators Kevin Cramer (R-N.D.), Bob Menendez (D-N.J.), Thom Tillis (R-N.C.), Kyrsten Sinema (D-Ariz.), Martha McSally (R-Ariz.), and Kelley Moore Capito (R-W.V.). The full letter can be viewed here.
For motorcoach operators, the American Bus Association (ABA) and United Motorcoach Association (UMA) have been championing a bill that would provide $10 billion in loans and grants to help the bus industry bridge the recovery. The bill, Coronavirus Economic Relief for Transportation Services Act (CERTS Act), was introduced jointly by Sens. Jack Reed (D-R.I.) and Susan Collins (R-Maine) earlier this month. Both associations have spearheaded extraordinary Congressional outreach through tens of thousands of letters, emails, calls, and meetings by members and industry friends. A letter urging support of the bill was signed by leaders of more than 30 associations, including the UMA, ABA, and NLA. The full letter can be viewed here.
According to the letter, “These transportation industries and their employees all provide vital transportation services, playing an essential and critical role in the national transportation network. If these industries fail, it will have a devastating and reverberating effect throughout the entire economy. The impact will affect not only the capacity of the national transportation network, but also schools, national emergency response capabilities, the manufacturing sector, the financial sector, the tourism sector and beyond. All citizens deserve vital, reliable, and affordable transportation services for their daily lives, and require safe and reliable transportation services for their children to attend school and educational events.”
Although it’s been widely reported that Congress will pass another heavy-lifting and wide-sweeping COVID-19 relief bill—especially with the virus spiking again and many provisions from the CARES Act expiring or being exhausted—Republican lawmakers have expressed their desire to see a package that doesn’t exceed $1 trillion. Because aid is so critical and industry-specific relief could be overlooked, the associations continue to urge their members, industry peers and friends, family, and anyone impacted by the recovery of the transportation and travel industry to continue reaching out to their members of Congress. UMA has created a form letter specifically for the CERTS Act, which is available at busesmoveamerica.com.
Text for neither bill has yet been posted online as they were introduced immediately preceding recess. Track the progress of the bills by visiting congress.gov.
[07.14.20]