Corporate travel has been resurgent heading into 2022’s summer holiday hiatus as businesses have found themselves released from the shackles of COVID-19. The question is whether this recovery will persist once the summer season has finished. Business travel recovery can vary quite rapidly depending on the individual sectors. Professional and legal services are still 40-50% below their pre-COVID levels, while academia is 20% down!
A chronic rate of labour shortages and the associated industrial action that has taken place have made delays and cancellations the norm for travel this summer, whether by rail or air. The constant disruption is apparently taking its toll, since travel fatigue appears to be setting in. The chaos that is caused by lack of personnel and flight disruptions across the travel sector is making some travellers believe that they shouldn’t travel and should meet through online means instead.
Rise in prices
Prices are rocketing at the moment due to a combination of capacity restrictions, soaring coasts for suppliers (including fuel and wages), and surging demand. There are very few cheap deals out there at the moment because airlines are limited in what they can actually sell. Naturally, businesses are therefore looking at how much they are spending and how regularly they travel, potentially creating a long-term challenge.
Because Russia has reduced gas flow through the Nord Stream 1 pipeline that goes to Germany and other European countries, an energy crisis is looming. Russia’s gas supply weaponization has triggered numerous fears that some industrial companies might have to curb their production and citizens might therefore be unable to heat their homes during winter.
All of these consequences could unfortunately seriously affect demand for corporate travel. Governments might be forced to issue restrictions on energy usage as winter is approached. This could lead businesses to scrutinise the true value of the flight that they book even more than before, both to conserve fuel and economise financially.
Many forecasts predicted after the first lockdown that mounting fears about climate change would suppress the travel demands for business permanently. Following the first rush of reunions post-lockdown, there are many more people focused on sustainability than ever before, especially since we now have summers of extensive fires and unnaturally hot weather! Overall travel will likely continue to recover, but might be a bit less than before due to the difficulties that surround air travel.
Cheltonian Cars have over 35 years’ experience in the taxi and private car hire industry in and around Cheltenham. We are highly experienced in all forms of transport all over the country for many years, and can offer airport transfer wherever possible. If you would like more information about how we keep your loved ones safe and secure, then take a look at our website www.cheltoniancars.co.uk or give us a call as soon as you like on 01242 374 767 – we’d be happy to help!