TRIVIA

How much did business travel expenses in the U.S. decline 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$94,000 million, according to a report by the consulting firm McKinsey. Globally, the decline was 51%. But the sector is already beginning to rebound, albeit under a new normal. McKinsey identifies four major segments of companies and organizations based on 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, since they have been able to replace travel with virtual interactions. They account for 20% of 2019 expenses.

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

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