Over two years have passed since the first case of COVID sent the world spiraling into the pandemic-induced recession of 2020. Amid recovery, the Russian-Ukraine war is now putting an excessive strain on the world’s economies. The disruption to global supply chains and significant surges in energy prices are contributors to the current inflation rate hitting a 4-decade high.

In a bid to tame inflation, major central banks have synchronously risen interest rates in various countries. Research reports conducted by the World Bank show a strong correlation between recent global economic trends and those of historical economic crises. These similarities have the heads of financial institutions warning there’s a 98% chance of global recession on the horizon.

After the travel industry took a large blow during covid-19 restrictions, international tourism showed significant improvement as arrivals more than doubled in January 2022 compared to January 2021. Although figures remain 67% below pre-pandemic levels, recovery is well underway.

With a global recession in the pipeline, industry officials and consumers are wondering whether the industry is going to be hit once more. So, the question arises: How will this impact corporate travel?

Research conducted by American Express reveals that despite the cost-of-living crisis, two-thirds of UK businesses plan to increase their corporate travel spending by at least 50% over the next 12 months.

Of the participating companies, 77% of them reported that their businesses suffered due to travel restrictions throughout the pandemic.

The report reveals that 82% of respondent businesses confirmed that corporate travel plays a key role in driving revenue, profitability and enabling growth.

Six in ten businesses plan to expand into new UK regions while over a third wish to enter new international markets.

Hana Lear, Vice President, Corporate, UK Card Services at American Express, said: “Businesses had no choice but to press pause on a lot of travel over the last two years and lean on virtual alternatives to build relationships with customers and colleagues.

“Our research shows that business travel and the value of in-person connections in driving growth go hand in hand.”

With the challenges being faced, there are reasons to remain optimistic. Although prices of essentials such as utilities and food are forecasted to stay the same despite the decline in disposable income, non-essentials such as flight tickets may be more likely to become cheaper.

The AMEX report shows that corporate travel is a top priority for the vast majority of businesses. With the right frameworks in place, corporate travel targets can still be achieved whilst taking advantage of the cheaper fares and focusing efforts on consumer relationships, networking, and marketing.

Keeva Travel is a specialist corporate travel agency with over 20 years of expertise in the industry. We are proud partners of companies across various industries including marketing, NGOs, entertainment and construction. We are dedicated to helping our clients maximise their travel budgets as well as providing an array of travel solutions to suit any demand. Why not contact our Business Development Travel Consultant Bethany Griggs at  beth@keevatravel.co.uk / 01373 310 786 to see how we can be of assistance to you?