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)
JK Tyre Raises Product Prices Amid Raw Material Surge
- By Sharad Matade
- August 11, 2026
JK Tyre & Industries has increased product prices and signalled further hikes as it seeks to offset rising raw material costs, even as demand remains resilient across segments.
The company said raw material prices rose about 20 percent quarter on quarter, with a further 8–10 percent increase expected in the following quarter. The increase has put pressure on margins, given that about 70 percent of tyre industry inputs are petro-based.
In response, JK Tyre raised product prices by 10–11 percent until August and plans an additional increase of 5–6 percent in the coming months to mitigate cost pressures.
The pricing action comes despite steady demand conditions. The company reported a 25 percent year-on-year increase in domestic volumes in the June quarter, supported by growth across both replacement and original equipment manufacturer segments.
Management indicated that demand remained stable across commercial vehicles, passenger vehicles and two- and three-wheelers, with no significant production cuts from OEM customers.
The company also said it continues to focus on premiumisation, with higher-margin products such as 16-inch and above passenger car tyres increasing their share in the sales mix.
Yokohama Rubber H1 Profit Soars More than Double And Raises Full-Year Outlook
- By Sharad Matade
- August 11, 2026
Yokohama Rubber reported record earnings for the first half of fiscal 2026, with profits more than doubling and margins reaching a historic high.
The Japanese tyre maker said sales revenue rose 10.4 percent year on year to ¥639.4 billion in the six months to June, while business profit increased 54.3 percent to ¥95.8 billion. Operating profit doubled to ¥109.7 billion, and profit attributable to owners of the parent rose 104.2 percent to ¥72.6 billion.
Business profit margin improved to 15.0 percent, compared with 10.7 percent a year earlier, marking a record level for the company.
Yokohama Rubber said the results reflected strong performance across its businesses, delivering record first-half highs in all key earnings categories.
Segment data showed that tyre sales revenue rose 10.8 percent year on year to ¥580.4 billion, accounting for 90.8 percent of total revenue, while the MB (Multiple Businesses) segment recorded revenue of ¥54.9, up 6.9 percent and contributing 8.6 percent of the total. Other businesses declined 3.6 percent to ¥4.2 billion.
Business profit growth was led by the tyre segment, where profit increased 57.3 percent to ¥89 billion. The MB segment posted profit of ¥6.3 billion, up 22.5 percent, while other businesses reported profit of ¥0.5 billion.
The company said tyre segment growth was supported by higher sales of high-value-added and high-inch tyres, as well as increased volumes in the off-highway tyre business. Replacement tyre demand strengthened across regions, with strong sales in Europe and continued expansion in North America.
Operating profit was also supported by a ¥35.3 billion gain on the sale of assets at a former off-highway tyre plant in Israel, partly offset by a one-off expense of ¥15.0 billion related to the closure of a US tyre plant in Salem, Virginia.
The company also revised upwards its full-year forecast for fiscal 2026. It now expects sales revenue of ¥1,320 billion, business profit of ¥192.5 billion, operating profit of ¥199.5 billion and profit attributable to owners of the parent of ¥117 billion.
JK Tyre Reports Steady Quarterly Revenue As Margins Face Pressure
- By TT News
- August 10, 2026
JK Tyre & Industries reported broadly steady revenue for the first quarter of the financial year, with profitability constrained by higher input costs.
The company posted consolidated revenue of INR 39.56 billion for the quarter ended 30th June, 2026, while earnings before interest, tax, depreciation and amortisation (EBITDA) stood at INR 2.68 billion, implying a margin of 6.8 percent. Profit before tax was INR 0.54 billion and profit after tax came in at INR 0.43 billion.
According to the company’s financial statement, revenue from operations was INR 39.46 billion, compared with INR 38.69 billion in the corresponding period a year earlier.
Operating profit declined to INR 2.68 billion from INR 4.24 billionn a year earlier, reflecting pressure on margins.
Dr Raghupati Singhania, Chairman and Managing Director, said: “JK Tyre continued its steady performance in Q1FY27 with a consolidated turnover of INR 3.56 billion, supported by strong demand momentum across segments. The performance is driven by sharp focus on customer centricity, product excellence and disciplined execution across markets. During the quarter domestic volumes grew by 25 percent on year-on-year basis, across both replacement (12%) and OE markets (42%), with increasing contribution from higher-value added products. The continuing west Asis crisis led to a sharp increase in raw material prices which impacted our gross and operating margins. As is known approximately 70 percent of the tyre industry raw materials are petro based, hence, it is highly vulnerable to oil price movement”.
He added: “With a sharper focus on operating leverage, cost reductions, and increasing share of premium products, JK Tyre remains confident to improve performance in FY27 with double-digit revenue growth, aiming to create enduring value for all stakeholders with an increased profitability through strategic expansions”.
Dunlop And Beta Motorcycles Strengthen OE Ties With New Geomax Tyre Lineup
- By TT News
- August 08, 2026
Dunlop Motorcycle Europe has expanded its original equipment partnership with Beta Motorcycles, securing a deal to supply advanced Geomax tyres across the Italian brand’s trial and motocross lineups. The enhanced collaboration introduces new standard fitments for both competition disciplines.
For trial applications, the Geomax TL01 replaces the previous D803GP on Beta’s Evo and Sincro models. Engineered with a high-adhesion compound and a specialised block layout for angled terrain, the ultra-sticky tyre has already proven popular among Beta racers and now becomes factory-standard equipment.
In the motocross sector, Beta has adopted the Geomax MX34 for its entire RX range, covering both two-stroke and four-stroke 250 cc and 350 cc variants, as well as the 450 cc model. Designed primarily for intermediate ground, the versatile MX34 performs effectively across diverse surfaces, from soft mud to compacted dirt.
Donato Miglio, Race Team Manager Trial, Beta Motorcycles, said, "Geomax TL01 represents a significant step forward in performance, which is why we decided to adopt it as our original equipment trial tyre. Many of our riders already use it in competition, where it has proven its exceptional grip, stability and handling.”
Fabrizio Dini, Race Team Manager Motocross and Enduro, Beta Motorcycles, said, “In motocross, the latest generation of Dunlop MX tyres features significant performance improvements. Geomax MX34 provides excellent grip, particularly on dry surfaces, giving riders a reassuring feeling of safety and constant control. Both tyres suit our bikes perfectly.”
Miguel Morais, Original Equipment Manager, Dunlop Motorcycle Europe, said, “We are proud to deepen our partnership with Beta through the introduction of Geomax TL01 and MX34 across its latest trial and motocross models. Fitments like these are a strong endorsement of the capabilities of tyres throughout our range, and we’re excited that more and more riders will experience increased confidence and performance that helps them get the most out of their Beta motorcycles from their first ride.”
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