Worldwide business trips are not eliminated by coronavirus
We would like to caution in this case. Similar predictions have been made in the past, but they proved to be incorrect. After 9/11 the world saw a devastating impact on international business travel as an example, however, it came back to its feet after a few years. There was a similar slump and recovery of business travel following the global economic crisis in 2007-09.
In 2015, researchers from the International Air Transport Association observed it was the industry needs at most five years to see the industry bounce back from significant short-term fluctuations. However, despite these bumps, the global air traffic has seen steady increase since the late 1970s. It is evident that the longer the duration of the pandemic, the longer the recovery timeframe; however, it will surely occur.
Our research
A rise in business travel is expected to be different across different sectors and the location that is required for travel. One area that is at the center of attention and is arguably more protected from the spread of the virus than others is the life sciences.
Medical device manufacturers like Medtronic as well as Roche have benefited from selling equipment that can help combat the disease, such as ventilators and testing kits. Pharmaceutical companies like AstraZeneca, along with Pfizer, are betting on developing a vaccine prior to 2021.
This is an industry that has been active throughout the financial crisis and is set to be a major winner in the coming few years. It’s also a sector that has its employees engaged in a significant amount of business travel across the globe. This is why it’s the ideal area to research how business travel will evolve in the near future.
Club med. Mizkit
We spoke to 15 global executives from the largest medical device firms prior to and during the outbreak to examine the significance of business travel for carrying out their work globally. They unanimously agreed that even though their schedules for trips are generally on hiatus, they hope to return to the air when they can.
At the very least, in a short time, they anticipate that worldwide travel will go differently for them. Their companies will focus on sending executives to countries that are part of regional travel corridors where flights are allowed, and there are no restrictions on quarantine at any point.
Our interviewees say that a few companies have expanded their travel via cars or trains, if it’s they are convenient, especially in Europe. International business travel is likely to be the slowest to begin in the near future, as North as well as South America likely to be the last continents that will become accessible again. The companies we spoke to have already scheduled their first face-to-face international gatherings in October 2020 in their region.
Additionally, travelers are eager to lift limitations and allow travel routes, especially within and between Europe and East Asia, the Middle East, and East Asia. There is also an increase in the number of businesses and individuals who hire private aircraft as temporary solutions to avoid delays at airports. Certain UK schools have taken this option, chartering private jets for international students arriving in the UK as a means of ensuring an ongoing flow of revenue.
The years ahead
In the near term, our research indicates that life science companies will continue to grow, particularly in developing nations, and see travel as an essential way of retaining existing customers and gaining new customers in these areas.
They affirm the business process in emerging markets requires the ability to deal with complicated cultural hurdles and build trust through face-to-face meetings. Making a deal with a brand new client tr, training local doctors about a brand new product, or resolving an issue in an international team has to be accomplished in person.