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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Infiniteria has appointed Proman as its Engineering, Procurement and Construction partner for a circular tyre recycling facility in Uddevalla, Sweden. This collaboration marks a decisive move towards establishing what the company describes as Europe’s leading circular tyre recycling business, with the Uddevalla site serving as the cornerstone for a future network of industrial-scale plants across the continent.

The company specialises in transforming end-of-life tyres into high-value recovered materials, aiming to accelerate the transition to a more resilient circular economy. The Uddevalla facility stands as Infiniteria’s flagship project and represents the initial phase of a broader European expansion strategy.

Committed offtake agreements are already in place with major customers including Preem, Nokian Tyres and Michelin, underscoring strong industrial demand for the recovered materials.

Kajsa Ryttberg-Wallgren, CEO, Infiniteria, said, “Bringing Proman on board as our partner is a major step forward for Uddevalla. They have a proven track record in delivering complex industrial plants, and the discipline and capability they bring mark a decisive step towards starting operations. We are fully committed to Uddevalla as the long-term home of our flagship facility, to our customers and to building Europe’s leading circular tyre recycling business.”

Francisco Carlos, Managing Director, Proman Portugal, said, “We appreciate the confidence and trust placed in Proman by Infiniteria as we take on the role of Engineering, Procurement and Construction partner in the Uddevalla project. Proman brings strong global expertise and experience to the project, including project management, engineering, procurement, construction and commissioning of complex industrial facilities. We look forward to working with Infiniteria to progress the Uddevalla project towards successful completion.”

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Tyres Europe has released replacement tyre sales data for the first quarter of 2026, with the industry showing early signs of recovery according to an assessment by Secretary General Adam McCarthy. The figures from member companies reveal that consumer tyre segments, including passenger car, SUV and light commercial vehicle categories, rose by one percent compared to the first quarter of 2025. This modest growth follows a weak performance across the previous year.

McCarthy noted that the recovery was uneven across different tyre types. All Season tyres continued their strong momentum with a five percent increase, driven by consumer demand for year-round versatility, while summer tyres slipped by one percent as they lost further ground to all season alternatives. Winter tyres posted a sharp decline of 14 percent, which the Secretary General attributed to mild weather conditions across much of Europe. Members’ sales significantly outpaced imports, which were impacted by European produced tyres and possible regulatory action. Travel demand remained subdued during the quarter, with higher fuel prices linked to the Middle East conflict affecting the market from March.

Other segments reflected a mixed landscape. Truck and bus tyres edged up one percent, supported by improved freight activity and business sentiment before recent geopolitical developments and rising fuel costs created uncertainty. Agricultural tyres declined 11 percent amid continued caution in farm investment. In contrast, the moto and scooter tyre segment recorded a more positive six percent gain, according to the Tyres Europe report.

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Hankook Tire & Technology reported a sharp rise in first-quarter operating profit, supported by stronger sales of electric vehicle tyres and replacement tyres across key markets including Europe, Korea and China.

The South Korean tyre maker said consolidated revenue for the three months to March reached USD 3.63 billion, up 7 percent from a year earlier, while operating profit rose 42.9 per cent to USD 345.9 million.

Sales in the group’s tyre business increased 9.3 percent year-on-year to USD 1.75 billion. Operating profit in the division rose 31.1 percent to USD 298.6 million, representing an operating margin of 17.1 percent.

The company said demand for original equipment tyres supplied to electric vehicle and hybrid models, alongside higher replacement tyre sales, supported performance despite continued uncertainty linked to tariffs and elevated oil prices.

Hankook Tire said tyres measuring 18 inches and above accounted for 49.1 percent of total passenger car and light truck tyre sales in the quarter, up 2 percentage points from a year earlier. Electric vehicle tyres represented 29.6 percent of original equipment passenger car and light truck tyre sales, an increase of 6.6 percentage points year-on-year.

The company expanded original equipment tyre supply during the quarter for both internal combustion engine and electric vehicle models produced by Mercedes-Benz, BMW and Ford.

Hankook Tire said it currently supplies original equipment tyres to about 50 automotive brands across roughly 300 vehicle models, including Porsche.

The company also continued to expand its iON electric vehicle tyre range, which now covers about 300 specifications from 16-inch to 22-inch tyres.

Its thermal management subsidiary Hanon Systems reported first-quarter sales of USD 1.88 billion, up 5 percent year-on-year, while operating profit rose more than fourfold to USD 66.3 million.

Hankook Tire said it continued to expand production capacity at its Tennessee plant in the US and its Hungary facility in Europe as part of efforts to strengthen global supply capabilities.

The company said it aims to raise the proportion of high-inch tyres to 51 percent and electric vehicle tyres to more than 33 percent of passenger car and light truck original equipment tyre sales.

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Hankook Tire, the exclusive tyre supplier to the ABB FIA Formula E World Championship, supported all competitors during the 2026 Hankook Berlin E-Prix. The double-header at Tempelhof Airport Street Circuit featured Hankook’s iON Race tyre, which was pushed to its limits by the venue’s rough concrete surface and a fast, 15-corner layout. Rounds 7 and 8 of Season 12 unfolded across two days on the 2.374-kilometre anticlockwise circuit, where tyre preservation and energy efficiency became critical success factors.

The abrasive concrete apron at Tempelhof forced drivers to carefully manage degradation, while the Turn 2 ATTACK MODE zone added a recurring strategic puzzle. Hankook’s iON Race rubber delivered steady grip and predictable handling as track conditions shifted between Saturday and Sunday. The double header demanded consistent tyre behaviour, with teams adjusting to changing rubber build up and surface temperatures over the two race days.

Nico Müller secured his first Formula E victory in Round 7, holding off Nick Cassidy and Oliver Rowland through disciplined energy management. In Round 8, Mitch Evans produced a remarkable comeback from last on the grid, passing Oliver Rowland and Pascal Wehrlein with a late decisive move to take the win. Both performances highlighted the tyre’s balance of durability and performance under racing stress.

Off track, the Berlin weekend drew large crowds to Hankook’s Fan Village, where interactive displays featured iON tyres on electric vehicles. The brand also partnered with DS Automobiles to debut the DS N°7 model. Following the Tempelhof races, the Formula E season now heads to Monaco for the next rounds on 16 and 17 May.

Manfred Sandbichler, Senior Director of Hankook Motorsport, said, "The Berlin double-header confirmed the resilience of the iON Race under some of the most demanding surface conditions in Formula E. Running two races at Tempelhof provided valuable insight into how the tyre responds to sustained abrasion across a full race weekend. The competitive racing and strategic variation across both days reflected the tyre’s ability to operate within a broad performance window, and these insights will support ongoing development alongside the championship."

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