What’s In-Store for Travel Spend in 2022
Many aspects of global business have been impacted by the pandemic over the past two years. But perhaps none have been more acutely impacted than business travel.
Procurement leaders need to be aware of what new risks are in-store for business travelers in 2022. They also need to stay vigilant about changes to travel restrictions considering emerging variants of the COVID-19 virus. Risk and travel restrictions are the factors most likely to impact spending.
Here’s what’s in-store for travel spend in 2022.
Renewed Travel Restrictions May Stunt Some Spending
During 2020, many of the world’s business travelers were grounded while governments and health authorities assessed the risks of COVID-19 and put travel restrictions in place. Much of the world’s business travel has since resumed. Analysts have also forecasted that business travel will recover relatively soon.
According to Business Travel News, as of November 17th, 2021, business travel was expected to recover by 2024: "The results of the 13th annual BTI Outlook, GBTA’s study of business travel spending and growth covering 73 countries and 44 industries, found that after a sharp 53.8% year-over-year decline in spending to $661 billion in 2020, global expenditures are predicted to rebound 14% in 2021 to $754 billion."
However, the latest COVID-19 variant, Omicron, was discovered about a week later, on November 25th. First identified in Botswana and South Africa, the variant has many mutations that could make it more transmissible and possibly more dangerous.
The U.S. has already announced stricter testing requirements for travelers entering the country, stopping short of issuing significant travel restrictions. However, multiple countries have already renewed some travel restrictions.
This could reduce some travel spending, especially for companies that need to send travelers to countries and jurisdictions with strict restrictions in place. In some cases, virtual meetings may be safer and more affordable, if they are an option.
Location-Based Risk Assessments Are Essential
At the time of this writing, analysis of Omicron is ongoing. Business travel may resume in earnest depending on what medical scientists learn about the strain and how the world reacts to the news. If current vaccines and boosters are discovered to be effective against preventing serious illness from the variant, regional authorities may lift some travel restrictions.
Nonetheless, procurement leaders should pay close attention to rules and regulations for any locations they intend to send business travelers to. They should also conduct risk assessments before sending travelers into areas where there are large numbers of unvaccinated or where restrictions on movements are in place.
According to Security, the most important factors to consider are vaccination rates, hospitalization rates, variant prevalence, acceptance of vaccination certificates, and testing accessibility in business travel destinations. Analyzing these factors may require additional time and investment, but they should be treated as essential components of the company’s duty of care to travelers.
Prepare for Business Travel in 2022
No one can predict exactly how business travel will change in 2022. However, businesses can take steps now to ensure they have a spending plan and a risk aversion strategy for the coming year.
If you’d like to know more about how you can prepare for business travel in 2022, don’t miss the next ProcureCon Supply Chain Virtual Event, happening online at noon ET from January 19th to January 20th.
Register now to reserve your spot.