• Companies are examining whether business travel will be worthwhile once the pandemic is over.
  • After a year of working remotely, some think Zoom and Slack can replace face-to-face meetings.
  • However, hotel companies rely on business travelers for a large part of their revenue.
  • You can find more stories in the Insider business section.

The question was whether working people will be on business again after the COVID-19 pandemic has subsided an intense debate in the last few months.

While lowering costs and working more efficiently can be paramount for businesses, the uncertain future of business travel could have a significant impact on the travel industry, including hotel companies.

A November 2020 A survey by consulting firm Oliver Wyman found that 43% of the 2,500 business travelers surveyed expect fewer business trips, even after the pandemic is over.

At the New York Times Dealbook conference that month, Bill Gates said“I assume that over 50% of business trips and over 30% of days in the office will go by.”

Gates added that face-to-face meetings that require a flight and an overnight stay in a hotel are no longer the “gold standard” and that many companies will have a “very high threshold” for sending employees on such trips.

It’s common for business travel to be among the first spending cuts when businesses face tough financial times. With a lot of American businesses working remotely for almost a year, digital tools like Zoom and

Relaxed
 these are often used to hold meetings can prove crucial even in a post-pandemic world.

Glenn Fogel, CEO of Booking Holdings, said on a February 24 earnings call that he expects business travel volume to recover over time, but ultimately accounts for a smaller proportion of total travel expenses compared to previous years.

In an interview with Insider on his first day at work Tony Capuano, Marriott’s new CEO, said The hotel giant does not share this opinion.

“I think there will be some improvement on what we’ve seen before with business travel in terms of frequency and what purposes travelers think are personal compared to what travel purposes can be achieved by technology,” he said. “But there have been many opinions about a fundamental and permanent reduction in business travel in the long run, and time will tell if they are correct. We do not have that view.”

He added that Marriott was “fairly optimistic” about the long-term recovery from business travel.

Indeed, hotel companies likely need business travelers to survive.

Prior to the pandemic, temporary business travelers made up as much as 60% of the business of large hotel chains like Hilton. They kept occupancy reliable year round and during the work week, and hotel managers say these travelers were also some of their most loyal ones.

about Business travel accounted for 30% of total travel expenses in 2019According to the US Travel Association, spending accounts for around $ 334.2 billion.

Hotel manager speak to Insider in February They believe broader vaccines will be needed for the travel industry to fully recover and that vacation travel is likely to return well before business travel.

To meet the falling demand that came with the pandemic, major hotel conglomerates such as Marriott, Hilton, Hyatt and Four Seasons have have developed offers to specifically address remote employees looking for a change of scene. It is part of a trend the hotel industry is calling “bleisure” travel, or travel that combines both business and personal aspects.

The packages typically include perks like daily food and beverage credits, free or discounted laundry services, free WiFi, and waived resort fees.

Some hotel companies are also developing on-site COVID-19 testing capabilities to trick groups into planning events in their homes again.

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