Business travel in Europe remains below pre-corona levels
Recovery continues but is still sluggish
Business travel in Europe is still lagging behind pre-corona levels, according to the latest figures from the European Travel Commission (ETC). The data shows that business travel spending in Europe was down by 17% in the first half of 2023 compared to the same period in 2019.
The ETC's figures show that the recovery in business travel is continuing, but it is still sluggish. In the first quarter of 2023, business travel spending was down by 22% year-on-year. This improved to a decline of 17% in the second quarter.
The ETC's research also shows that the recovery in business travel is not evenly spread across Europe. Business travel spending is recovering more quickly in some countries than in others. For example, business travel spending in Germany was down by just 10% in the first half of 2023 compared to the same period in 2019. In contrast, business travel spending in the United Kingdom was down by 25%.
What is driving the slow recovery in business travel?
There are a number of factors that are contributing to the slow recovery in business travel, including:
- The continued impact of the COVID-19 pandemic
- The war in Ukraine
- The rising cost of living
- The popularity of video conferencing
The COVID-19 pandemic has had a significant impact on business travel. Many companies have reduced or eliminated business travel in order to protect their employees and reduce costs. The war in Ukraine has also created uncertainty and disruption, which has led to a decline in business travel.
The rising cost of living is also a factor in the slow recovery of business travel. Many companies are finding it difficult to justify the cost of sending employees on business trips. The popularity of video conferencing is also a factor in the decline of business travel. Video conferencing allows companies to communicate with clients and partners without the need for travel.
What can be done to encourage the recovery of business travel?
There are a number of things that can be done to encourage the recovery of business travel, including:
- Providing financial incentives for business travel
- Making it easier for businesses to book and manage business travel
- Investing in infrastructure to improve the efficiency of business travel
- Promoting the benefits of business travel
Providing financial incentives for business travel can help to make it more affordable for companies to send employees on business trips. Governments and businesses can offer tax breaks or subsidies for business travel. Making it easier for businesses to book and manage business travel can also help to encourage its recovery. This includes providing online booking tools and making it easier to compare prices from different airlines and hotels.
Investing in infrastructure to improve the efficiency of business travel can also help to make it more attractive to businesses. This includes investing in high-speed rail lines and airports. Promoting the benefits of business travel can also help to encourage its recovery. This includes highlighting the importance of face-to-face interaction and the role that business travel plays in building relationships and closing deals.
Conclusion
The recovery of business travel in Europe is still ongoing, but it is still sluggish. There are a number of factors that are contributing to the slow recovery, including the continued impact of the COVID-19 pandemic, the war in Ukraine, the rising cost of living, and the popularity of video conferencing. However, there are a number of things that can be done to encourage the recovery of business travel, including providing financial incentives, making it easier for businesses to book and manage business travel, investing in infrastructure to improve the efficiency of business travel, and promoting the benefits of business travel.
