COVID-19 Delta variant slows business travel in September

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Companies are canceling business trips and keeping employees close to home as the Delta variant rages on.

September marks the start of the busy business travel season, but many companies are reluctant to send their workers on planes, especially as they are delaying their return-to-work dates.

According to a report by the American Hotel & Lodging Association, which surveyed 400 business travelers in August, 60% of business travelers said they would likely postpone their travel plans and 67% said that they would probably take fewer trips.

Business travel is back to about 40% of its pre-pandemic levels this summer, according to Delta Airlines, which expected it to reach 60% by September.

“We won’t be at 60%,” Ed Bastian, CEO of Delta Airlines, told the Wall Street Journal.

A Bloomberg survey of 45 large companies in the United States, Europe and Asia shows that 84% plan to spend less on travel after the pandemic.

According to Delta Airlines, business travel has returned to about 40% this summer. Many choose to stay at home.
According to Delta Airlines, business travel has returned to about 40% this summer. Many choose to stay at home.
SOPA / LightRocket images via Gett
Despite the increase in vaccinations, the CDC has asked people to limit travel during Labor Day to avoid massive crowds at airports.
Despite the increase in vaccinations, the CDC has asked people to limit travel during Labor Day to avoid massive crowds at airports.
Noam Galai / Getty Images

Business travelers are the most lucrative customers. They buy more expensive refundable tickets and accounted for up to three-quarters of airline profits before the pandemic, according to Bloomberg, while accounting for just 12% of seats.

Airlines executives have reported an increase in the number of cancellations and a slowdown in the number of new bookings, according to reports.

To compound the concern, the Center for Disease Control and Prevention warned unvaccinated people to forgo travel over Labor Day weekend and for those vaccinated to consider the “risks” as well. of their plans.

Delta said it has seen an increase in the number of cancellations and a slowdown in bookings.
Delta said it has seen an increase in the number of cancellations and a slowdown in bookings.
PATRICK T. FALLON / AFP via Getty Images

The European Union has also recommended its members limit non-essential travel from the United States, while Denmark and the Netherlands have banned Americans from entering.

Among the companies limiting business travel is Dell Technologies, which sent a memo to its employees in August explaining that domestic travel must be “critical” to the company’s business and customers and receive approval from the government. director and vice president of an employee, according to The Journal. , while software company Citrix Systems told the publication that travel remains “very, very limited.”

Bastian of Delta says travel will eventually resume. “There is no evidence that he will go away in any way,” according to the report.

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