According to a Bloomberg survey, 84% of large U.S. companies surveyed in Europe, Asia and the U.S. that surveyed 45 companies found that they plan to reduce their travel spending after a pandemic.
Excerpt taken from Bloomberg
According to a Bloomberg survey, 84% of large U.S. companies surveyed in Europe, Asia and the U.S. that surveyed 45 large corporations found they plan to reduce their travel spending after a pandemic.
The days of business travel are gone. Businesses around the globe are recognizing that new communication tools and innovative business models are making pre-pandemic-era travels a thing of the past, from Pfizer Inc., Michelin, and LG Electronics Inc. to HSBC Holdings Plc and Hershey Co., Invesco Limited. and Deutsche Bank AG.
Akzo Nobel Nv, Europe's largest paint manufacturer, is an example. Chief Executive Officer Thierry vanlancker spent the last year at Amsterdam's headquarters watching David Prinselaar, his manufacturing head, flail his arms and gesticulate madly while "visiting" 124 plants. He did this by directing workers with high-definition augmented reality headgear to factory floors. It took previously a long time to cross the globe by plane, but now it is done quickly and without jet lag. Vanlancker knows there is no turning back.
He said that trips to drum up business could fall by a third and internal meetings by even greater amounts. It's good for our wallets, and it helps us reach our sustainability targets. It's no longer a social sin to reach out via video when our customers have completed a year of training. It's a huge efficiency factor."
According to a Bloomberg survey, 84% of large companies in America, Europe, and Asia plan to reduce their travel spending after the pandemic. The majority of respondents saw travel budgets cut by 20% to 40%. Nearly two-thirds of those surveyed also reduced their in-person meetings. These cuts were primarily due to the ease and efficiency of virtual technology, lower costs and lower carbon emissions. Global Business Travel Association estimates that corporate travel spending could fall to $1.24 trillion in 2024, compared to $1.43 trillion at the peak in 2019.
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