Last Updated: August 20, 2022, 23:31 IST
Inflation, supply chain problems, and ongoing Covid-19 lockdowns in China are among the factors conspiring to delay a full recovery in business travel to its pre-pandemic level, according to an industry forecast released Monday. The Global Business Travel Association now projects business travel will regain its 2019 level of $1.43 trillion in mid-2026, 18 months later than predicted in the group’s last forecast in November.
“Recovery has hit some headwinds,” GBTA said in a statement that outlined a gradual improvement from a 2020 low of $661 billion until reaching $1.47 trillion in 2026. “The factors impacting many industries around the world are also anticipated to impact global business travel recovery into 2025,” said Suzanne Neufang, the association’s chief executive.
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The group said recovery was “short-circuited” in late 2021 and early 2022 by the Omicron variant of Covid-19, but that trips surged after that once Covid cases fell. Major obstacles to a full recovery include high energy prices, labor shortages, Covid lockdowns, regional impacts due to the war in Ukraine, and sustainability concerns.
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