Business travel to bounce back to normal levels within 6 months: FabHotels' survey
80% of corporate industry leaders expect business travel to resume to pre-COVID levels in their organization within 6 months, while 58% expect budget per trip to reduce by 15% or more.
With more than one-third of the global population being put under one or the other kind of restrictions, there have been speculations about the travel industry facing a serious decline. However, a recent survey conducted by FabHotels, among more than 500 industry leaders managing travel within their organizations, states that business travel is likely to bounce back sooner than most people expect. According to the survey titled ‘State of business travel post-COVID-19’ taken by 500+ respondents, 80% respondents expect the business travel to resume to pre-COVID levels in their organization with 6 months post lockdown.
India's hotel market is more than $10B in size. The global pandemic is expected to leave the corporate businesses with less money to spend on travel, lodging and entertainment. The survey by the hospitality chain, which was conducted among its leading corporate partners found that 58% of corporates expect reduction of 15% or more in travel budget, 19% expect a reduction of less than 15%, while 24% corporates expect travel budgets to remain same post the lockdown is lifted. While one-third of respondents said they would not move employees to lower-tier hotels to save expenses, other two-thirds said they are expected to make this transition to reduce their travel budgets.
This survey covered companies across sectors ranging from IT to Pharmaceuticals, and IT to FMCG. Nearly half of respondents in this survey had employee strength of more than 500 permanent employees. More than 10% of employees travel more than once a month at 45% surveyed organizations. Not surprisingly, hygiene and sanitization at the hotels is going to become extremely critical in the decision-making process of corporates. A very high 93% of respondents said they are likely to switch from unbranded to branded hotels post lockdown for better hygiene and sanitization requirements for their employees. 88.4% respondents said they are likely to revaluate their budget hotel partnerships post lockdown.
Commenting on the survey results, spokesperson of FabHotels, Vaibhav Aggarwal, Founder & CEO said, “FabHotels has been at fore-front of understanding and fulfilling requirements of business travelers pan-India. Our partnerships with some of the largest enterprises is a testimony to that. We feel delighted that even in this grim environment, our enterprise partners are upbeat about a swift recovery in business travel at their organizations. Post lockdown, we once again intend to serve our customers in the best manner possible by providing industry-leading hygiene and sanitization standards.”
To further talk about the ongoing survey on the state of business travel post the Coronavirus scare, FabHotels will be hosting a webinar on Friday. It will emphasise on how businesses can respond to the ongoing COVID-19 outbreak and prepare for recovery.
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