Business travel represents a substantial force in the global economy. Just before the Covid-19 pandemic hit, it contributed to more than USD 1.2 trillion, about 25 percent of the travel and tourism sector’s overall economic impact, to the global GDP. Businesses had resumed spending on travel after substantial declines in 2008 and 2009.

A research by Global Business Travel Association Foundation had found that for every one percent change in business travel spending, the US economy typically gains or loses 74,000 jobs, USD 5.5 billion in GDP, USD 3.3 billion in wages and USD 1.3 billion in taxes. The report also stated that personal vehicle (35 percent) was the most popular mode of transportation among US business travellers in 2016, followed by airplane (28 percent) and rental cars (13 percent).

Internal travel encompasses trips taken for intracompany purposes, where employees participate in activities such as training, team building or inspection of field operations. External travel, on the other hand, refers to travel done by employees for engagements outside the company, including in-person meetings with clients and suppliers, trade conferences and customer sales calls.

"Obstacles to business travel, such as cumbersome visa protocols and long flight connections, constrain access to knowhow and limit growth opportunities, especially in developing countries," said Frank Neffke, research director at Harvard Kennedy School’s Growth Lab.

Benefits Of Business Travel

In the past, companies have experienced that, on average, 40 percent of customers would eventually be lost without in-person meetings and support.

Detailed statistical modelling over 18 years and 14 industries indicates that for every dollar invested in business travel, US companies make a USD 9.50 return in terms of revenue. The modelling also found that US business travel has yielded USD 2.90 in profits for every dollar spent.

There is a small segment of employees for whom travel is deemed essential for conducting business. This category accounted for around 15 percent of all corporate travel expenses in 2019 and includes decision makers in manufacturing companies with a wide distribution of factories and plants, and field-operation workers. For some corporate travellers, it is possible to move oversight responsibility to local personnel and/or utilise digital medium. This segment will see their business travel decline. A large segment of business travel is done to cultivate new or important client relationships. This segment will bounce back as soon as Covid-related restrictions are lifted.

A tiny portion of business travel comes from the public sector, professional associations and nonprofits. During the pandemic, many professional associations were able to hold virtual events to replace in-person conferences and will likely be more cautious in their return to travel.

Business Travel Catches The Virus!

Business travel has taken a big hit during the Covid-19 pandemic and its future is still up-in-the-air, waiting for the end of the pandemic and firming up the ‘New Normal’. In 2020, total global business travel expenses contracted by 52 percent, while managed corporate-travel spending in the United States alone plummeted by USD 94 billion (71 percent).

The World Travel and Tourism Council’s (WTTC) latest annual research shows that the global travel and tourism sector suffered a loss of almost USD 4.5 trillion to reach USD 4.7 trillion in 2020, with its contribution to GDP dropping by a staggering 49.1 percent compared to 2019. In 2020, sixty-two million jobs were lost, representing a drop of 18.5 percent, leaving just 272 million employed across this sector globally, compared to 334 million in 2019. The threat of job losses persists as many jobs are currently supported by government retention schemes and reduced hours, which could be lost without a full recovery of the travel and tourism sector.

Some business travellers expect to take at least as many business trips in 2022 as they had in the year before the Covid-19 pandemic was declared. While teleconferencing will reduce the need for some business travel, many survey respondents cited the need to meet in-person to rekindle relationships with customers, suppliers and business partners. Another frequent reason cited for the need to travel for business was a job change.

The countries most eager to travel for business once Covid-19 travel restrictions are lifted seem to be China, US and Australia. Of course, the potential increase in Covid cases from the Delta and future variants of the virus may still cause further backsliding on rising confidence levels for resumption of business travel. (TT)

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India’s tyre industry has secured a stronger foothold in the global market, with four domestic manufacturers ranked among the world’s top 20, according to the latest Global Tyre Report released by Tire Business based on 2024 sales.

MRF was the highest-placed Indian company, taking the 13th spot worldwide. Apollo Tyres followed at 14th, while JK Tyre & Industries ranked 19th. CEAT entered the top 20 for the first time, securing 20th position and underscoring the country’s growing influence in the global tyre trade.

“The presence of four Indian tyre companies among the world’s top 20 is a matter of immense pride for the Indian manufacturing ecosystem. It reflects not only the scale we have achieved, but also the focus on technology and global competitiveness that Indian companies have pursued. This milestone is a validation of India’s emergence as a global hub for high-quality, value-driven tyre manufacturing,” said Mr Rajiv Budhraja, Director General of the Automotive Tyre Manufacturers Association (ATMA).

Indian companies have been steadily climbing the global rankings over the past decade. Apollo Tyres has moved up three places since 2013, while JK Tyre has advanced six positions in the same period. CEAT has shown the fastest recent progress, rising three spots in just the last year.

The country’s manufacturing strength is also reflected in its industrial footprint. China leads with 158 tyre plants, followed by India with 67 and the United States with 44. This places India as the world’s second-largest tyre manufacturing base by number of plants.

In Asia, MRF holds the second-largest manufacturing footprint with 10 plants, trailing only Bridgestone, which operates 19. Indian companies have also built strong positions in specialised and high-performance categories. MRF is the world leader in racing tyre manufacturing with three plants. It also ranks second in motorcycle tyres with four plants, followed by CEAT with three. In the farm tyre segment, MRF again ranks second globally with seven factories.

Investment has played a central role in this expansion. Apollo Tyres recorded the highest capital expenditure globally as a share of sales, reinvesting 59% into expanding and modernising its operations. MRF also ranked among global leaders, with capex exceeding 10% of sales.

Long-term prospects remain robust. A recent report by ATMA and PwC India, titled Viksit Bharat 2047: Vision and Roadmap for the Indian Tyre Industry, forecasts that India’s tyre production could nearly quadruple by 2047, while industry revenues may grow nearly twelvefold to about ₹1,300,000 crore.

“With strong domestic demand, rising exports and policy support under the vision of a Viksit Bharat, we are confident that Indian tyre manufacturers will continue to move up global rankings and play a defining role in the future of global mobility,” Mr Budhraja added.

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In a significant move to bolster its international profile, Linglong Tire has entered a global partnership with Chicago Bulls, the iconic NBA team. This alliance represents a strategic advancement in the company's global sports marketing, building upon previous high-profile sponsorships with Chelsea FC and Real Madrid. The primary objective is to substantially enhance brand recognition for its product lines, including Green Max, Atlas and Evoluxx, across the crucial North American market, with promotional activities also extending into Europe.

This marketing initiative is strategically aligned with the company's operational expansion, notably a new manufacturing facility under construction in Brazil, which is expected to optimise supply chains and support a drive for increased market share in the Americas. The collaboration has been designed to create meaningful fan engagement through co-developed activation strategies. These will include immersive experiences such as joint basketball camps and interactive tours, aiming to forge a powerful connection with a global community passionate about basketball and high-quality, innovative tyres.

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The Yokohama Rubber Co., Ltd. has confirmed a continued partnership that will see its US subsidiary, Yokohama Tire Corporation, provide ADVAN racing tyres for three Porsche one-make racing series in 2026. This multi-series agreement includes the Porsche Sprint Challenge North America by Yokohama, the Porsche Sprint Challenge USA West by Yokohama and the Porsche Endurance Challenge North America. All three are sanctioned by the United States Auto Club (USAC) and function as key developmental categories within the Porsche Motorsport Pyramid, featuring race-prepared vehicles such as the 911 GT3 Cup and the 718 Cayman GT4 RS Clubsport.

The upcoming 2026 season represents a significant milestone, marking the sixth consecutive year Yokohama has been the control tyre supplier for the North America and USA West series and the third straight year for the Endurance Challenge. The company will support the competitors with its ADVAN A005 for dry tracks and the ADVAN A006 for wet weather conditions across a combined schedule of numerous events. This ongoing involvement is a strategic initiative designed to bolster the profile and recognition of the ADVAN brand throughout the important North American market.

This commitment to one-make racing extends beyond the Porsche family. Yokohama Rubber is also the official control tyre supplier for the recently launched Mustang Cup, reinforcing its active role and investment in North American motorsport. Through these high-profile partnerships, Yokohama aims to enhance brand power by associating its ADVAN products with some of the most exciting and competitive racing series on the continent.

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Continental has demonstrated its role as a key partner for sustainable fleet management through its collaboration with Italian transport company Adami Trasporti. Since 2023, Continental has supplied its Conti Hybrid series tyres – Conti Hybrid HS5, Conti Hybrid HD5 and Conti Hybrid HT3 – to Adami's fleet, leading to significant reductions in the company's total operating costs and a marked improvement in its environmental performance. This partnership underscores how strategic tyre selection is central to modern logistics.

For Adami Trasporti, a family-owned business specialising in food transport for over four generations, operational integrity is paramount. The company operates a fleet of 200 modern tanks and tank containers for sensitive liquid goods like fruit juice, wine and cooking oil, requiring adherence to the highest hygiene standards and strict EU environmental regulations. To meet these demands, the Verona-based firm, with additional locations in Italy, Slovakia and Germany, invests heavily in technological innovations, from real-time data monitoring to modern vehicles designed for minimal emissions.

Within this comprehensive sustainability strategy, the choice of tyres has proven to be a critical factor. While tyres themselves account for a small fraction of direct operating costs, their influence on fuel consumption and CO2 emissions can affect up to 31 percent of a fleet's total costs. Continental is actively informing the logistics industry that a shift in focus from mere tyre mileage to rolling resistance is essential. Tyres with optimised rolling resistance, such as the Conti Hybrid models, serve as a direct lever for saving fuel, lowering costs and reducing a fleet's carbon footprint.

This aligns perfectly with Adami Trasporti’s concrete goals for greater sustainability. The company complements its use of Continental’s tyres with other forward-thinking initiatives, most notably the integration of LNG-powered vehicles that cut nitrogen oxide emissions by 70 percent. Through this multi-pronged approach, in which Continental’s tyre technology plays a fundamental role, Adami Trasporti positions itself as an industry pioneer. Together, the companies are actively contributing to lower CO2 emissions across the European transport sector.

Stefano Adami, owner at Adami Trasporti, said, “With the rolling resistance-optimised tyres, we are reducing our CO2 emissions, saving fuel and benefiting from high mileage at the same time. The fuel savings of one and a half to two percent are crucial for us, as consumption has a direct impact on our operating costs. The service and support offerings increase operational reliability of our vehicles and enable us to offer consistent and punctual services throughout Europe.”

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