The Coronavirus Pandemic is Costing Hotels Billions in Business Travel, and Analysts Say Things Might Not Go Back to Normal Until 2024

The Coronavirus Pandemic is Costing Hotels Billions in Business Travel, and Analysts Say Things Might Not Go Back to Normal Until 2024 - Business Insider

1 minute read Business Insider October, 20 2020

Experts like travel managers and airline executives don't expect corporate travel to recover for years

Excerpt from Business Insider

A new Bank of America analysis found that business trips produced $334 billion in revenue in 2019 and won't rebound until 'late 2023 or in 2024.'
Other experts like travel managers and airline executives don't expect corporate travel to recover for years either.
One hotelier has essentially written off the potential return of corporate travel, going as far as to modify his hotels to appeal to leisure travelers rather than business travelers.

The hotel industry brings in $170 billion annually, and half of that comes from just one sector: corporate travel.

However, new Bank of America research shows that business trips disappearing overnight could cost hotels somewhere between $8 billion and $23 billion this year.

Americans went on over 400 million business trips in 2019. Those business trips contributed $334 billion to the entire travel industry's $1.1 trillion in revenue last year, according to Bank of America researchers. Then the coronavirus pandemic hit and left the travel industry reeling.

According to analysts, it could be years before the industry rebounds.

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