Business Travel – When Will It Recover?

Business Travel – When Will It Recover?

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)

RuLa-BRW Unveils Specialised Retreaded Tyre For Berlin's Electric City Buses

RuLa-BRW Unveils Specialised Retreaded Tyre For Berlin's Electric City Buses

RuLa-BRW, a partner in the AZuR network, has introduced the Berliner BUS400 Premium HL EV, a hot-retreaded tyre engineered specifically for the operational realities of electric city buses. The launch addresses a critical facet of the mobility transition, shifting focus from powertrain emissions to the sustainability of vehicle components. This new offering expands upon the established Berliner BUS400 profile, targeting the distinct mechanical stresses imposed by battery-electric public transport.

Electric buses present unique challenges for tyre design, including substantial weight increases from traction batteries, elevated starting torque and the relentless stop-and-go cycles inherent to urban routes. These factors place considerably greater strain on tyres compared to those used in conventional diesel or gas-powered buses. The BUS400 Premium HL EV has been developed to withstand these rigorous conditions while maintaining performance and safety standards.

The tyre features a robust carcass construction paired with a specialised rubber compound formulated for electric bus traffic, according to RuLa-BRW. This combination is designed to deliver extended mileage, consistent driving stability and cost-effective operation within demanding city environments. The development underscores a commitment to the circular economy, demonstrating how modern retreading techniques can repurpose premium tyre casings multiple times, significantly prolonging their useful life and conserving raw materials.

For public transport operators, the synergy of electromobility and tyre retreading offers tangible operational and environmental benefits. The new tyre enables fleets to reduce new tyre purchases while maximising the service life of existing casings, complementing the zero-emission operation of their vehicles. This innovation highlights that the mobility revolution extends beyond drive systems to encompass the full lifecycle of components, reinforcing the retreading industry’s role in sustainable transport solutions.

Machine-Vision.io Brings Automated Tyre Diagnostics To AZuR Network

Machine-Vision.io Brings Automated Tyre Diagnostics To AZuR Network

The Alliance for the Future of Tires (AZuR) has expanded its partnership roster with the addition of Machine-Vision.io, a Reutlingen-based innovator that secured first place in the AZuR startup competition LOOP THE TYRE 2026. The company develops artificial intelligence-powered systems for the automated assessment, classification and sorting of used and scrap tyres. Its technology employs advanced image processing, laser scanners and machine learning to detect manufacturer details, tyre type, dimensions, production dates, tread depth, wear patterns and structural damage, delivering objective and reproducible condition reports.

Manual inspection remains the industry norm, with outcomes often shaped by individual employee experience. Machine-Vision.io digitises this workflow, introducing standardised and verifiable quality evaluation capable of handling high-volume tyre inventories. The generated data enables businesses to route suitable tyres towards reuse or retreading operations while directing non-compliant units to appropriate recycling pathways. This systematic approach improves material flow efficiency and strengthens high-grade recycling loops.

Beyond automated evaluation, the startup provides web-based solutions for tyre inventory management and marketing. Test outcomes, stock quantities and quality classifications are captured digitally and can be synchronised with online marketplaces. Such integration enhances transparency across the supply chain and simplifies the matching of tyres with their most suitable next-use applications.

Through its two-year partnership within the AZuR network, Machine-Vision.io will collaborate with companies, researchers and other stakeholders along the entire value chain to advance the tyre circular economy. The initiative illustrates how digitalisation and objective data can support informed decision-making, potentially increasing the supply of retreadable casings and fostering the continued development of sustainable material cycles.

Tana Oy Appoints AB Equipment As Exclusive New Zealand Distributor

Tana Oy Appoints AB Equipment As Exclusive New Zealand Distributor

Tana Oy has announced the appointment of AB Equipment as its new authorised distributor for the New Zealand market, a strategic move that bolsters the Finnish manufacturer’s footprint across the Asia-Pacific region. This collaboration is designed to elevate local service capabilities and ensure that New Zealand-based operators receive responsive, on-the-ground support.

AB Equipment, a nationally recognised provider with deep expertise in material handling, construction, forestry and municipal machinery, will now carry Tana’s complete range of landfill compactors and recycling equipment. Leveraging its extensive countrywide service infrastructure and technical proficiency, the distributor is well-equipped to manage customer needs from initial commissioning through to long-term maintenance and repairs.

Within Tana’s global sales network, authorised distributors are instrumental in delivering region-specific knowledge and comprehensive lifecycle care. This latest agreement reinforces that commitment, promising New Zealand customers enhanced reliability and sustained operational value from their Tana machines while further solidifying the brand’s international service standards.

Gerd Schreier, VP Sales and Marketing, Tana Oy, said, “Expanding our distributor network with strong local partners is a key part of our growth strategy. AB Equipment’s deep market knowledge and nationwide coverage make them an excellent fit to represent Tana in New Zealand. Together, we can better support waste management operators with efficient and sustainable solutions.”

Peter Dudson, CEO, AB Equipment, said, “With over a century of experience in heavy equipment and a strong focus on customer support, we are excited to bring Tana’s solutions to the New Zealand market. Tana’s technology aligns well with the needs of our customers, particularly in improving efficiency and supporting more sustainable waste management practices.”

Michelin Opens Tyre And Service Outlet In Kanpur To Strengthen Retail Presence

Michelin Opens Tyre And Service Outlet In Kanpur To Strengthen Retail Presence

Michelin has opened a new Michelin Tyres & Services (MTS) outlet in Kanpur in partnership with HJ Wheels, expanding access to its products and services in the city and surrounding areas.

Located in Harsh Nagar, the outlet offers Michelin's range of passenger car, SUV and two-wheeler tyres, including the Primacy, Pilot Sport, Latitude Sport and LTX Trail series. It also provides tyre-related services and automotive accessories.

The facility was inaugurated by Annu Mehla, Regional Sales Head – B2C (North and East), Michelin India, alongside the HJ Wheels team.

Shantanu Deshpande, Managing Director of Michelin India, said: "Kanpur is a pivotal market in Michelin's North India growth journey with a strong automotive customer base and a growing interest in premium products. The launch of our new Michelin Tyre & Services store is a step towards bringing Michelin's globally benchmarked products and services closer to this growing base of discerning customers. As we prepare to introduce Made-in-India passenger car tyres, we remain focused on delivering premium mobility solutions tailored to the evolving needs of Indian consumers."

Michelin said the outlet is intended to improve access to its products and services as demand for premium automotive offerings grows in the region.

The company said Kanpur's improving connectivity through new expressways, expanding presence in electric and advanced manufacturing, ongoing urban development and changing consumer preferences influenced its decision to strengthen its retail network in the city.

The new outlet has been established with HJ Wheels, an automotive aftermarket business that has operated in Kanpur since 1989. Michelin said the partnership reflects its strategy of working with established local retailers to expand its customer reach.