TRIVIA

How much did U.S. business travel spending fall during 2020 due to the pandemic?

a) 38%

b) 52%

c) 71%

d) 88%

Response: 

c) 71%

They fell 71% over 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 broad segments of companies and organizations with respect to how they will resume their travel spending:

1- Those whose types of operations never canceled travel during the pandemic. They accounted for 15% of business travel expenditures in 2019.

2- Those who will never resume travel, as they have been able to replace travel with virtual relationships. They represent 20% of the expenses in 2019.

3- FOMOs (fear of being left out), which will grow the most in travel spend to make up for lost time. They are mainly small and medium-sized companies that accounted for 60% of business travel spend in 2019.

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