FCM, one of the world’s largest travel management companies, expects a significant rebound in its global corporate travel business by year-end as activity increases.
The company, which operates in more than 95 countries, believes sales will continue to increase globally and is targeting 50 per cent of pre-COVID levels by the end of the year.
Marcus Eklund, FCM Global Managing Director, said, “Based on early signs that vaccines are effective in preventing symptomatic infection, and with healthy vaccine rollout rates in key markets such as Australia, New Zealand, the U.S. and UK, we expect health risks to reduce.
“In the absence of disruptions such as new strains, this should lead to an easing of government-imposed restrictions on domestic and international travel, and a partial rebound of the global business travel market by year end. Based on our experiences, travel immediately rises by 20-30 per cent when restrictions are relaxed. A healthier rebound will occur if international borders remain open.”
FCM’s diverse customer base is playing a key role in future growth, with recent focus groups indicating high levels of pent-up demand.
Eklund said, “The mining, construction, pharma, energy and resources, FMCG manufacturing industries and their associated supply chains, together with governments and other growth companies, were responsible for most business travel activity during 2020. They will also drive early growth in travel activity this year, as their C-suite, customer-facing and sales executives recommence their traditional customer and team engagement.”
Global research has revealed the emergence of a new hybrid working model, with more than half of all employees expected to work from home several days a month. As a result, Eklund expects some pre-pandemic travel activity will shift to virtual working models, leading to further consolidation in the corporate travel industry.© Travel News Asia