Small and medium-sized businesses are considered key drivers in Australia’s business travel recovery after lockdowns. According to travel agencies, SMEs will play an important role in giving the support the industry needs since they account for around 98% of all Australian businesses and they are responsible for 65% of business travel.
After March 2020, airlines, hotels, car rental suppliers and travel management companies saw SME businesses picking up faster than larger enterprises. One of the main reasons for the lead in the recovery was the need to be on the road to keep their businesses running.
Business travel agencies, such as Corporate Traveller, believe that this trend will continue after recent lockdowns end. Furthermore, they argue that video conferencing may have been an efficient tool during the pandemic, but in situations where collaboration is needed it hasn’t been shown as efficient as in-person meetings. Additionally, they stress that face-to-face relationships drive better sales, likewise in-person interaction with employees increase their engagement, retention, and productivity.
Business travels spend in Australia is estimated to be $25 billion per year. The expectations for the recovery are high with vaccinations, rapid Covid testing, traveller tracking, contact tracing, hotel hygiene, insurance offerings and government policy. The prediction post lockdown is that the industry will have a healthy bounce back within 12 months.
If you’re a SME and looking for ways to reduce overheads and get your business back on track after the lockdown we may have some solutions for you. Why not contact us today and have a conversation about outsourcing your Contractors and Payroll, we can make contractor management easy.
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The travel industry goes local
After lockdowns, SME business travel will play an important role in economic recovery
