World Economic Forum research shows that Global business travel will survive COVID-19.
Global business travel has largely halted during the pandemic. Experts have been raising the alarm that this is the death of business travel, arguing that it will be a long time before the virus is gone and that business people have become used to meetings on the likes of Zoom and MS Teams. As a result, many of them no longer see the need for constantly crossing the globe. There have been similar predictions before, and they were proven wrong. The 9/11 attacks had a negative effect on global business travel, for example, but it found its feet several years later. There was a similar downturn and revival in business travel after the global financial crisis of 2007- 2009.
A revival in global business travel is likely to vary across sectors and the required location of travel. One sector that is center stage right now, and arguably more insulated from the pandemic than others, is life sciences. Medical device companies such as Medtronic and Roche have been benefiting by selling equipment to help fight the virus, such as ventilators and testing kits.
So this is an industry that has stayed active during the crisis and is likely to be a big winner over the next couple of years. In addition, a sector engages its employees in substantial business travel around the world. For these reasons, it is arguably the ideal sector in which to carry out research into the future of business travel.
Companies that were interviewed for World Economic Forum research admitted that they would focus on sending executives to countries that are part of regional travel corridors where flights are permitted and there are not quarantine requirements at either end. Some firms have already increased their travel in cars or trains where it is convenient, particularly in Europe.
Research interviewees insist that doing business in developing markets requires overcoming complex cultural issues and that you build up trust by meeting face to face. Sealing a deal with a new customer, training a local physician on a new product, or solving a problem in a global team can only be done in person.
\n Find the research here:\n here.\n
World Economic Forum, 2020