"Limitations of Remote Work..." Reviving Overseas Business Trips for Global Companies

[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Overseas business trips, which had come to a halt due to COVID-19, are showing signs of revival worldwide. As businesspeople who felt the limitations of remote communication venture abroad, airlines are increasingly optimistic about revenue recovery.

On the 8th (local time), Bloomberg reported that an analysis of data from companies managing business trips showed that demand for business travel flights, which had slowed due to COVID-19, is recovering. The industry noted that frequent business trips are occurring not only in private sectors such as technology, retail, and finance but also in government and defense fields.

American Express Global Business Travel (Amex GBT), the industry leader, recently stated that corporate business trip bookings have recovered to 61% of pre-COVID-19 levels. Considering that the rate was 25% during the early spread of Omicron this year, this represents a significant recovery. CWT, which provides business travel services to about 30% of S&P 500 companies, also reported that booking rates rose from 20% at the beginning of the year to over 50%. Multinational travel agency FCM Travel, operating in over 100 countries worldwide, explained that business trips have revived to about 80% compared to 2019, with some regions reaching pre-pandemic levels.

As demand for business trips increases, airlines are securing related routes. Delta Air Lines mentioned in a recent earnings report that domestic business trip bookings in the U.S. have reached 70% of 2019 levels and are expected to expand in the second quarter. Scott Kirby, CEO of United Airlines, also stated, "Business travel across the Atlantic has surpassed 2019 levels."

However, Bloomberg reported that the recovery of business trips is not uniform worldwide. Business travel has yet to revive in places like China, where COVID-19 lockdown measures have been reinstated, and Hong Kong, where quarantine measures for foreign visitors remain. According to data released by Amex GBT for March 21?26, business trips from France to China or from the U.S. to China and Hong Kong accounted for only 3% and 2%, respectively, of 2019 figures. Considering that business trips from the U.S. to Switzerland and Australia reached 66% and 64% of 2019 levels, the difference is significant.

This content was produced with the assistance of AI translation services.