TRIVIA

How much did business travel expenses in the US fall in 2020 due to the pandemic?

a) 38%

b) 52%

c) 71%

d) 88%

Answer: 

c) 71%

They fell by 71% compared to 2019, or US$94 billion, according to a report by consulting firm McKinsey. Globally, the decline was 51%. But the sector is already beginning to rebound, albeit with a new order. McKinsey identifies four major segments of companies and organizations in terms of how they will resume their travel spending:

1- Those that, due to the nature of their operations, never canceled their trips during the pandemic. They accounted for 15% of business travel expenses in 2019.

2- Those who will never travel again, as they have been able to replace travel with virtual relationships. They account for 20% of 2019 expenses.

3- FOMO (fear of missing out), which will see the biggest increase in travel spending to make up for lost time. These are mainly small and medium-sized businesses, which accounted for 60% of business travel spending in 2019.

4- Wait and see. These are organizations in segments where there is no competition (mainly professional associations and NGOs) and which will be cautious about returning to traditional travel. They accounted for 5% of spending in 2019.