Leisure travel has made a startling comeback, but business travel''s recovery could still be years away
Summary List Placement It seems like everyone in the US is rushing to book their summer "revenge vacation." But there''s one segment of travel that''s lagging behind: business travel . Most of us might be laser-focused on leisure vacations right now, but the revival of business travel is crucial for hospitality and travel companies. Before COVID-19, business travelers made up 12% to 15% of trips on larger airlines but generated about 45% of airlines'' revenue. And while leisure demand has passed complete recovery, business travel is still lagging behind by 60%, Scott Kirby, United Airlines CEO''s, told John Dickerson on CBS'' " Face the Nation ." Similarly Southwest Airlines'' "business travel component" was down 69% in June, Gary Kelly, Southwest Airlines chairman and CEO, told Bloomberg . Kelly predicts this segment will continue to be down 50% by September, and will then improve afterwards. In 2022 and 2023, Southwest plans to bring back more flights catered to business customers. The consensus is that business travel will accelerate in September after Labor Day, Patrick Scholes, an analyst at Truist Securities, told Insider.
Leisure travel has made a startling comeback, but business travel''s recovery could still be years away
Summary List Placement It seems like everyone in the US is rushing to book their summer "revenge vacation." But there''s one segment of travel that''s lagging behind: business travel . Most of us might be laser-focused on leisure vacations right now, but the revival of business travel is crucial for hospitality and travel companies. Before COVID-19, business travelers made up 12% to 15% of trips on larger airlines but generated about 45% of airlines'' revenue. And while leisure demand has passed complete recovery, business travel is still lagging behind by 60%, Scott Kirby, United Airlines CEO''s, told John Dickerson on CBS'' " Face the Nation ." Similarly Southwest Airlines'' "business travel component" was down 69% in June, Gary Kelly, Southwest Airlines chairman and CEO, told Bloomberg . Kelly predicts this segment will continue to be down 50% by September, and will then improve afterwards. In 2022 and 2023, Southwest plans to bring back more flights catered to business customers. The consensus is that business travel will accelerate in September after Labor Day, Patrick Scholes, an analyst at Truist Securities, told Insider.