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)
Pirelli Rolls Out F0468 Rear Tyre Solution For Demanding Most Circuit
- By TT News
- May 12, 2026
Pirelli has developed a new rear tyre solution for the fifth FIM Superbike World Championship round at the Czech Republic’s Most circuit. The track is known for unusually high mechanical strain on rubber, particularly at the rear axle. To address this, Pirelli created the F0468 medium compound rear specification. Its compound matches the D0922, a tyre used at Most in 2025 and at Phillip Island across the previous two seasons. However, the F0468 features an entirely new internal structure for better race-long consistency and improved stability.
This newcomer evolves the E0829 specification, which shared the same compound and appeared at Phillip Island earlier this year. Riders who dislike the F0468 can still choose the D0922 development rear tyre. That option has already proven itself at the unique Czech layout and at Phillip Island, another tyre‑killing circuit. For qualifying and the Superpole Race, Pirelli has designated the standard soft SC0 as the reference rear tyre.
Beyond the premier class, Supersport and SportBike World Championship competitors will also race at Most. Supersport riders receive the same front choices as Superbike: soft SC1 and medium SC2. At the rear, Supersport entries can pick the soft SC0 or the medium SC1. SportBike competitors have used that same medium SC1 on both axles all season.
The tyre lineup thus gives every category familiar options alongside the new F0468. By blending a proven compound with a revised structure, Pirelli targets greater performance consistency without forcing riders to abandon the trusted D0922. Most’s punishing layout will serve as the ultimate test for both solutions.
Giorgio Barbier, Pirelli Motorcycle Racing Director, said, “Over more than two decades as supplier to the Superbike World Championship, Pirelli has built an extremely solid and versatile tyre range. The SCX supersoft rear solution now represents an absolute benchmark for riders and is used in most races on the calendar, with the soft SC0 becoming a valid alternative on some occasions. There are, however, some circuits that are particularly demanding on tyres, such as Phillip Island and Most, which by virtue of their layout and intrinsic characteristics require more specific solutions and more durable compounds, typically medium options.
“In these cases, development work focuses on improving key parameters such as performance and consistency over race distance: objectives that guided the design of the new rear solution in F0468 specification. To complete the allocation, riders will in any case also have the well-proven D0922 option available, which has shown that it can effectively handle the particular stresses imposed by this circuit. It will be interesting to assess whether the new F0468 medium will be able to raise the performance level beyond that of the D0922 further still.”
Linglong Tire Outlines Smart Mobility Vision At Intelligent Electric Vehicle Development High-Level Forum 2026
- By TT News
- May 12, 2026
Linglong Tire Vice President Feng Baochun represented the Chinese tyre industry at the Intelligent Electric Vehicle Development High-Level Forum 2026, held in Beijing in April. He addressed the session titled ‘New Stage, New Drivers, New Ecosystem – Market and Consumption’, sharing the latest insights into tyre market developments.
During his presentation, ‘Reinventing Product Values, Strengthening a New Smart Mobility Ecosystem’, he explained that profound changes in the automotive sector – driven by artificial intelligence, shifting environmental factors and globalisation – are redefining the role of the tyre. He stated that tyres are evolving from traditional safety components into critical parts that significantly influence overall vehicle performance.
To meet these demands, Linglong is actively building innovation drivers in global research, development and marketing, aiming to become a product and service provider for intelligent mobility rather than remaining a classic tyre manufacturer. The company currently focuses on optimising rolling resistance. Through new sustainable materials and advanced compound technologies, Linglong has achieved a balance between energy efficiency and performance.
This balance is an indispensable requirement for major national and international automotive manufacturers. Linglong continuously researches, develops and tests with these partners to meet strict original equipment tire standards, reinforcing its commitment to the new smart mobility ecosystem.
BKT Charts INR 68 Billion Expansion Drive to Double Revenue by FY30
- By Sharad Matade
- May 12, 2026
Balkrishna Industries Ltd (BKT) has unveiled an ambitious expansion and investment roadmap aimed at more than doubling its revenue to around INR 230 billion by FY30, backed by a cumulative capital expenditure of INR 68 billion.
The company said the investment programme would strengthen its leadership in the off-highway tyre (OHT) segment, expand carbon black capacity and accelerate its entry into India’s on-highway tyre market. The strategy forms part of BKT’s long-term plan to achieve an estimated 8 percent global market share in the OHT segment by FY30.
BKT has already announced INR 13 billion of capex for OHT tyres in August 2024 and an additional INR 35 billion investment in May 2025 for on-highway tyres, rubber tracks, carbon black and power plant expansion. The board has further approved INR 20 billion in additional capex to support capacity expansion, infrastructure development, AI-enabled automation and sustainability initiatives.
As part of the OHT expansion strategy, BKT said ongoing debottlenecking and capacity enhancement initiatives would raise OHT tyre capacity to 425,000 metric tonnes per annum (MTPA). The company is also expanding its dedicated rubber tracks manufacturing facility while strengthening its mining tyre portfolio.
In the carbon black business, the company is scaling up production to improve raw material integration and energy efficiency. BKT said Phase 1 capacity has already been increased to 265,000 MTPA along with a 24 MW cogeneration power plant, taking total cogeneration capacity at Bhuj to 64 MW. Phase 2 expansion, which will raise carbon black capacity to 360,000 MTPA, is expected to become operational in Q1 FY27.
The company is simultaneously building its on-highway tyre business in India through a modular approach focused initially on premium passenger car radial tyres and commercial vehicle radial tyres. Commercial vehicle radial tyres were pilot launched in Q4 FY26, while passenger car radial tyres are scheduled for pilot launch in Q3 FY27.
For FY26, BKT reported standalone revenue of INR 106.56 billion, while net profit stood at INR 12.22 billion. OHT sales volumes rose 1 percent year-on-year to 317,356 MT.
The company said the expansion programme is expected to enhance profitability through stronger operational integration, scalable infrastructure and an expanded product portfolio, with blended EBITDA margins projected in the 23–25 per cent range after full commercialisation of the new capacities.
Continental Commits $76 Million For Highly Automated Tyre Warehouse In Mount Vernon
- By TT News
- May 12, 2026
Continental has unveiled plans to build a highly automated finished-goods warehouse in Mount Vernon, Illinois, representing an investment of roughly USD 76 million. The new facility, which will cover an area larger than six American football fields and hold approximately 500,000 passenger car tyres, aims to address growing demand across North America while improving service levels and customer support. Construction is scheduled to begin in the summer of 2026, with operations expected to launch the following year.
The Mount Vernon location already holds the distinction of being Continental’s largest tyre production facility in United States and serves as a linchpin for its supply network throughout the Americas. Tyre manufacturing has been a constant at this site for over 50 years, dating back to its 1974 opening; Continental took ownership in 1987. Today, the vast campus – measuring more than 320,000 square metres – produces tyres for passenger cars, light trucks and commercial vehicles, churning out roughly 11.4 million units annually while employing over 3,500 people.
Continental continues to advance digitalisation and automation across its global manufacturing operations, which include 19 tyre plants in 16 countries. The company is prioritising new technologies, alternative materials, environmentally friendly production methods and ongoing improvements in logistics efficiency.
Tansu Işık, CEO, Continental Tires Americas, said, “Our new highly automated finished-goods warehouse underscores our growth ambitions in North America. The new facility will enhance our ability to serve customers with greater speed and flexibility while strengthening our overall distribution network in the region.”
Nik Pearce, Plant Manager of Continental’s Mount Vernon tyre plant, said, “This investment is a strong signal for the future of our Mount Vernon plant. It enhances our capabilities, further modernises our operations and makes our plant logistics more efficient. At the same time, it strengthens our operations at local level and creates new development opportunities for our employees.”
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