Coronavirus: Business travel Industry to lose $820bn in revenue

An industry body has estimated a loss of $820 billion in the global business travel sector as corporates curb travel plans due to the effects of coronavirus.

China accounts for nearly half of the losses, Reuters reported.

According to a survey by Global Business Travel Association (GBTA), Asia has been the worst hit as three out of every four companies reporting they have cancelled or suspended all or most business trips to China, Hong Kong, Taiwan and other Asia-Pacific countries.

The industry group’s latest estimate is sharply above its February forecast of a $560 billion hit.

The fast-spreading virus, which originated in the central Chinese city of Wuhan, has killed more than 4,000 people, mostly in China, while disrupting businesses globally.

“Coronavirus is significantly impacting the business travel industry’s bottom line,” GBTA Chief Operating Officer Scott Solombrino said in a statement.

“The impact to the business travel industry – and to the broader economy – cannot be underestimated.”

China, which has seen a 95% drop in business travel since the outbreak, is expected to lose $404.1 billion in revenue from corporate travel, followed by $190.5 billion in loss for Europe.

Airline and hotel industries, which typically are the biggest beneficiaries of corporate spending, have taken a major hit to their revenue as the virus continues to spread, the industry group said.

Reuters