From google Goldman Sachs is recalling workers Returning to the office — but returning to business trips is becoming more sluggish.
Online bookings for domestic flights in May totaled $ 5.1 billion, according to data released Monday by Adobe Analytics. This is a 4% decrease from April and a 20% decrease from the same month two years ago. The main cause is the stubborn lack of business trips.
According to the company, only 11% of workers plan to travel within the next six months, and 29% of those surveyed still do not feel safe.
“Increased vaccination and consumer confidence have unleashed some disgusting demand, but lack of travel has begun to delay comebacks,” the data company said. “As companies take a cautious approach to reopening, lack of travel and prolonged consumer hesitation are prolonging the path to recovery.”
by Global Business Travel Association, This year’s travel spending will increase by 21% in 2021. In particular, it will increase toward the end of the year when vaccination becomes widespread. However, the group does not expect a full recovery until 2025.
Financial companies have been the biggest supporters of returning to the office, but trying to bring employees back to headquarters cannot completely resume travel-intensive initiatives such as initial public offering roadshows. Similarly, most meetings and investor meetings that previously accounted for a significant amount of travel remain online.
According to experts, industries such as consulting and law that require extensive travel are not even close to where the coronavirus was before it closed its travels.
“Some companies that met directly on the board last quarter returned to zoom this quarter,” Jeffrey Sonnenfeld Yale School of Management Senior Associate Dean told Post. “Some companies that have cost savings and are moving forward choose to hold only half of the meetings directly.”
Amazon and Google each saved more than $ 1 billion in travel expenses last year as the pandemic stopped traveling. Saving such money will be hard to give up. However, some believe that when some companies start a business trip, they put pressure on others to return to the road.
“They save money on travel until they start losing business,” Thomas Hayes, Chairman and Managing Member of Great Hill Capital LLC, told Post. “No one in their right mind wants to ride a zoom call. They want to have a steak dinner.”
Many of the decisions to return to the road are due to competition. And when some people resume their journey, it can create a factor of pressure or FOMO (fear of missing out) from their peers that forces their competitors to fly.
So Post reported On Friday, companies like Morgan Stanley are urging clients and investors to reopen the meeting and poll if they are willing to attend the meeting and travel domestically or internationally.
JPMorgan has, in particular, urged bankers to get back on the road. At the WSJ CEO Council in May, Jamie Dimon said: OK, well, that’s a lesson. “
“Whether it’s a flywheel or a catalytic effect, ambitious people will start more trips,” Sonnenfeld adds. “Proximity is important.”
Many companies prioritize a complete return to the office and still weigh the strengths and weaknesses of sending employees on internal business trips. Companies like Softbank and BlackRock have not yet made a decision on this issue.
Still, some believe that reviving before the coronavirus is a gradual transition.
“There is an entire ecosystem,” iBorrow founder and co-chairman Harlan Peltz told The Post. “You can’t travel without people to meet … and that will affect your business trip.”
Recovery of airmail reservations is stalled and is due to business trips
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