Travel, especially the return of business travel, is a major factor in hotels’ recovery, according to a new insight from CBRE. When business travel resumes, it will do so in full force, the econometric adviser says. It may look different and potentially include additional family members such as working spouses or school-aged children completing virtual learning during the traditional workday, but group and business travel has not ended in the U.S.
Although many office-using professions are able to maintain productivity through heavy reliance on telecommunication, economic evidence for in-person interaction will drive post-COVID-19 group hotel demand. From every US$1 invested in business travel, firms realized US$12.50 in incremental revenue, CBRE says. Additionally, Oxford Economics found that elimination of business travel reduces profits by 17% in the first year.
A more remote workforce will demand more opportunities to connect in person with colleagues, clients, and others in their network, and conferences and conventions are ripe to benefit from the increased demand. The desire for face-to-face communication and other humanistic features of traveling to interact with people will drive a strong recovery for business travel during the post-COVID-19 period.