Corporate DispatchPro Sharon Lam | Reuters Breakingviews
It’s a long jump back onto the travel bandwagon It has never been truer that the journey is the destination. Travelling has proven resilient after previous crises, which suggests that once a Covid-19 vaccine, treatment or other solution is found, antsy globetrotters will pack their Samsonites in nearly full force again. Notable changes are likely to be in health checks and corporate flyers.
The pandemic’s effects will undoubtedly linger. Count Warren Buffett, whose investment horizon is longer than most, among those worried that some changes to travel habits will endure. The billionaire’s Berkshire Hathaway conglomerate dumped its big stakes in four U.S. airlines amid the crisis. There’s reason for concern. It took nearly two years for North American flight demand to return following the 9/11 attacks, according to Morgan Stanley research. Overnight stays abroad this year are expected to fall by 20% to 30% from 2019, according to the World Tourism Organization, which would amount to a loss of up to $450 billion in receipts. After the global financial crisis in 2009, the comparable decline was a mere 4%. Travellers probably will stay closer to home at first. Domestic driving vacations, for example, make more sense in many places while flights are grounded, and national borders closed. Before bigger vacations get planned, popular destination spots will have to reopen. With most of Walt Disney’s theme parks and other major attractions unavailable, there’s less incentive to embark on a journey anytime soon. Eventually, though, airlines, hoteliers and online booking sites should be able to start luring confined consumers back with tantalising discounts. 19
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