Corporate Travel’s Downturn Will Deliver This Financial Blow Across All of Travel
Photo Credit: Many international organizations are keeping their travel freezes in place for the rest of the year. Unsplash / Pawel Chu
Skift Take
Billions of dollars in revenue are at stake next year, even once a dire 2020 is out of the way.
Business travel is good business. The corporate guest, or rather his or her company card, is a welcome one at any hotel, while passengers at the front end of the plane are far more profitable than economy class flyers.
The bad news is they’re not the first to return. While leisure travelers decided they needed a vacation this summer, corporate travelers still aren’t checking in.
Should the travel industry start worrying about losing this business in the longer term, and if so — what happens next?
Indecent Exposure
As we dig into the second half of the year, businesses remain cautious, and many larger organizations probably won’t travel for the rest of this year, some potentially well into 2021.
Their absence could hit hard — even with a reduction in corporate travel of one-third next year, one major hotel brand's could find itself with a gap of more than $12 billion in terms of room revenue generated by its franchise and management partners.
"Everybody thought t
