Business Travel is booming but beware new challenges, warns Advantage boss

Travel demand has “soared” but the industry faces multiple challenges on its recovery journey, warned Julia Lo Bue-Said, CEO of the Advantage Travel Partnership at the organisation’s conference in Madeira.

“Whilst we’re in recovery phase it’s clear our industry has a long journey ahead,” she said, adding that while demand for travel has soared since January and 95 per cent of members are optimistic about navigating out of the pandemic, there remain “significant challenges ahead”.

Balance sheets have been “decimated”, said Lo Bue-Said, adding that there is increased business debt from maximising grants and CIBLS loans as well as VAT deferrals that now need servicing.

She continued: “The cost of living crisis, challenging cashflow, merchant providers view of risk alongside how regulatory bond values are being set as well as ensuring we can regenerate travel with sustainability front of mind are all issues the industry is now facing.”

Furthermore, she pointed to industry infrastructure “buckling” under the pressure of the recent resurgence in travel, complicated and ongoing travel restrictions, regularly changing flight schedules, and the “passport shambles”.