The latest Business Travel Tracker finds American companies increasingly paring back pandemic-era restrictions on business travel amid developing storm clouds in the form of persistently high inflation and a looming recession—pointing to the need for immediate government intervention to sustain a positive rate of growth. Many companies slashed their business travel budgets during the pandemic, but less than half of companies (42%) still have policies in place restricting business travel—down from 50% in Q2. Businesses have shown a willingness to get back on the road, with 78% of business travelers expecting to take at least one trip to attend conferences, conventions or trade shows, and 75% expecting to visit customers, suppliers or other stakeholders in the next six months. In addition to the Business Travel Index, two separate surveys of corporate executives and business travelers form the Quarterly Business Travel Tracker, a product of the U.S. Travel Association, J.D. Power and Tourism Economics. Headwinds on the horizon The U.S. Travel Association’s forecast projects that business travel’s growth cannot be sustained in the long term, leading to a decline in the coming quarters. The new survey data arrives as economists in the U.S. and around the world sound the alarm about worsening economic conditions. JPMorgan Chase CEO Jamie Dimon on Monday cautioned that “very, very serious” headwinds—including inflation, rising interest rates and the ongoing war in Ukraine—were likely to tip the U.S. into a recession in the next six to nine months. With many economists and business leaders anticipating a mild recession in 2023, companies may look for ways to limit investment and travel spending, delaying a full recovery in business travel activity—as reflected in the forward-looking Business Travel Index. Federal policies to spur business travel demand In the face of this slowdown, certain federal policies can help offset these headwinds and spur the recovery of business travel. The U.S. Travel Association is calling on Congress to support temporary tax provisions that would encourage companies to restore business travel spending, particularly with regard to spending that supports workers in the food service and entertainment sectors. Further, the U.S. Department of State should take steps to greatly reduce visitor visa interview wait times to facilitate more international business travel—which have crept to over 440 days on average from top source markets—particularly as the strength of the U.S. dollar is posing a hurdle to attracting international meetings and events. “Business travel is coming back slowly, and these policies will be essential to keeping employees on the road and helping still-recovering companies weather an oncoming recession,” said U.S. Travel Association President and CEO Geoff Freeman.

Australia to move ahead with reopening

SYDNEY – Australia’s government said the milder impact of the Omicron strain of COVID-19 meant the country could push ahead with plans to reopen the economy even as new infections cases jumps daily with a record number in the states of Victoria, Queensland, South Australia and Tasmania, as well as the Australian Capital Territory.

Prime Minister Scott Morrison informed Channel Seven. “We have to stop thinking about case numbers and think about serious illness, living with the virus, managing our own health and ensuring that we’re monitoring those symptoms and we keep our economy going.”

Federal Health Minister Greg Hunt said the advice to the government was that the Omicron strain was more transmissible but also milder than other variants, which reduced the risk to both individuals and the health system.

Michael Bonning, chairman of the Australian Medical Association’s New South Wales Council, said the significant increase in hospitalisations combined with the peak holiday period and the number of health workers exposed to COVID were putting pressure on capacity.

“With both the Christmas period and with hospital workers being furloughed due to their close contact status…. we’re finding that it is becoming quite difficult to staff, especially critical areas of hospitals,” he told ABC Television.