The comeback of corporate travel: How should companies be planning?

It seems that, finally, the light at the end of the pandemic tunnel is in sight—at least in some parts of the world. In 2020, total global business travel expenses contracted by 52 percent, while managed corporate-travel spending in the United States plummeted 71 percent, or $94 billion. Last year, when we reported  on the impact of COVID-19 on corporate travel, we projected that the road to recovery would be a long and uneven one.

Much has changed since then, thanks largely to progress on the vaccination front. Even though there’s much debate  surrounding the timing of herd immunity in the United States, it’s indisputable that vaccination rates are on the rise across the country. At the time of writing, more than 40 percent of the US population has been fully vaccinated , with more than 50 percent having received at least one dose. Companies are starting to bring employees back to offices. Corporate executives are planning in-person meetings and gatherings with customers and colleagues.

In light of new developments, to what extent will videoconferencing replace business trips? How should corporations prepare for the next phase of business travel? While our insights from last year still hold, we’ve sharpened our understanding of how business leaders could be thinking about the postpandemic role of corporate travel. In this article, we identify four categories of business travelers—the “never left,” the “never returning,” the “fear of missing out” (FOMO), and the “wait and see” segments—and provide recommendations for how key players in the corporate-travel ecosystem can make effective plans in this context.

What’s changed: Increased vaccination is expanding flexible work arrangements

The most significant change shaping our thinking about the return of corporate travel is the rising vaccination rates in the United States and Europe. We project that the United States and the United Kingdom will slowly transition toward normalcy in mid-2021, with the rest of the European Union following shortly after (Exhibit 1).

Notwithstanding the risks presented by new virus strains and limited visibility into the duration of vaccine immunity, rising vaccination rates are ameliorating some of the travel anxiety. Many organizations are now proactively figuring out the future of work —which includes the role of business travel.

For many companies, COVID-19 has proven that more workplace flexibility is possible . Around 70 percent of executives said their companies will employ more temporary workers than before the pandemic, and 72 percent of executives report that their companies have started to adopt permanent remote-working arrangements for a subset of their employees. Nearly 40 percent of the workforce in the United States has the potential to work from anywhere. These signals and others suggest that many organizations are reevaluating working and organizational arrangements , including when, why, and how their employees should hit the road.

There’s no consensus, however, among business leaders about what to do with this newfound flexibility, and many organizations have not yet clearly communicated a vision for postpandemic work: around 30 percent of executives in a recent survey  say they have not heard about specific plans for corporate travel after the pandemic, while another 28 percent described their companies’ plans as vague.

Four key segments in the return of corporate travel

Breaking down corporate trips into different segments can help travel planners and suppliers plan for the return of corporate travel. We’ve identified four different business-travel profiles, each sitting at a different point on the travel-resilience spectrum. Three indicators were used to define each archetype and determine its position on the spectrum: sector, travel purpose, and whether the trip was domestic or international. For travel purpose, if in-person interactions remain critical for a company, then the more resilient such business trips are. Some assumptions were made on how likely it was that some forms of corporate travel would recover rather than be substituted by videoconference technology.

The profile mix varies from company to company, and it’s possible for all four to coexist within the same organization, although some might feature more prominently in some companies and less in others.

  • The “never left” segment. On one end of the spectrum, employees for whom travel is deemed essential for conducting business resumed their trips as soon as lockdowns eased. This category accounted for around 15 percent of all corporate travel expenses in 2019 and includes managers in manufacturing companies with a wide distribution of factories and plants and field-operation workers. Those who were reluctant to fly opted for rail and private cars instead.
  • The “never returning” segment . On the other end, business travelers that contributed to one-fifth of business travel spending in 2019 present an enticing opportunity for corporations to permanently slash their corporate-travel budgets. Digital adopters who are able to maintain high levels of effectiveness while working remotely may never return to corporate travel. Furthermore, advances made in digital technologies that enhance oversight of outposts have paved the way for corporate travel to be further reduced. For instance, many chain restaurants found ways to minimize corporate travel by replacing in-person visits with virtual alternatives, as well as establishing more local oversight systems. They are likely to want to keep these significant cost savings; although a certain number of business trips will continue after the pandemic even in this segment, they will do so at much lower levels than before.
  • The “fear of missing out” (FOMO) segment. The bulk of business travel (60 percent of business-travel expenditure in 2019)—which will likely drive the rebound of corporate travel—will be fueled by the FOMO segment: those traveling to cultivate important client relationships. Small and medium-size enterprises (SMEs) will likely increase corporate travel at much faster rates, as they are not subject to the heightened approval process that large enterprises have to follow. SMEs are likely to trigger a domino effect where one company’s resumption of business trips will catalyze its rivals’ return to work-related travel. Faced with intense competition, different players in the company (leadership, management, staff) coalesce to reinstate corporate travel at scale to seize a first-mover advantage over rival businesses. An April Global Business Travel Association (GBTA) member survey reported that more than 50 percent of respondents are developing or plan to develop a timeline for resuming travel, updated travel policies, or new safety resources and information for travelers.
  • The “wait and see” segment. This segment consists of workers in relatively noncompetitive industries and roles; it contributed 5 percent of total business-travel spending in 2019. These corporate travelers tend to come 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.

Taken together, the trajectories of the four travel categories confirm our earlier projection of an uneven recovery for corporate travel. Overall, we can expect a 20 percent reduction in corporate travel spending by 2023.

In addition, it’s worth noting that even within these segments, business-travel recovery will vary depending on the purpose and distance of the business trips (Exhibit 2). For instance, even for firms in the “never left” segment, overseas travel to attend international conferences has not returned because of government-imposed restrictions due to public-health concerns. Furthermore, given the uneven rollout of COVID-19 vaccines internationally, the return of international travel may be further suspended in regions with limited or delayed access to vaccines due to sustained public-health restrictions and/or disease outbreaks. On the flip side, “never returning” business travelers may still make exceptions for key events that are held regionally.

In the United States, a comparison of a multinational conglomerate’s internal and external travel spend and that of a private health insurer provides an example of how the recovery trajectory may differ from business to business (Exhibit 3). 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 trips employees take for engagements outside the company, including in-person meetings with clients and suppliers, trade conferences, and customer sales calls.

The multinational conglomerate we examined, a manufacturer of building products, had a total travel spend in 2019 of around $80 million. As a customer-driven business, the company spends the majority of its travel expenses on external travel. Much of this falls into the FOMO segment, which is already recovering at a faster pace this year relative to internal travel even though the overall travel expenditure remains depressed. The bulk of its internal travel was for the purposes of internal collaboration in 2019, a third of which is expected to be permanently eliminated, while the rest should gradually return over the rest of this year and 2022.

Corporate travel

A McKinsey Live event on 'Returning to corporate travel: How do we get it right?'

Approaching the future of corporate travel: Four steps

Charting a safe and effective road map for future corporate travel requires all players to collaborate. Key players in the ecosystem—suppliers (including airlines, hotels, car-rental and rideshare companies), corporate-travel planners, travel intermediaries such as online travel agencies (OTAs), global-distribution-system (GDS) providers, and travelers themselves—need to master four critical skills: leveraging real-time data, planning with agility, aiming for comfort and safety, and communicating with clarity.

Leverage real-time data

Planning for the future can feel like flying through a fog of uncertainty, which makes it even more important for players to leverage real-time data to inform their decision making. Organizations could invest in data capabilities to identify and monitor the first signs of an acceleration in business travel.

Planning for the future can feel like flying through a fog of uncertainty, which makes it even more important for players to leverage real-time data to inform their decision making.

OTAs and GDS providers may be worth exploring as new data sources. Travel intermediaries such as these are uniquely situated to provide aggregate data for each industry. For instance, they can inform a corporate-travel planner how many seats are being booked by the rest of the company’s sector, signaling whether the company is ahead of or behind the curve. Many corporate-travel planners are also concerned about the fluctuations in the cost and availability of tickets, given the volatility of flight schedules during this time. Intermediaries can provide data that suggest which flights are more likely to stay on an airline’s schedule, helping clients build more agility into their decision making. Intermediaries may be able to create a new revenue stream from these data.

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Real-time data also help suppliers of corporate travel, such as air carriers and hotels, become more agile. As corporate travel returns, these suppliers will need to deploy the right resources in real time to match demand, which may shift abruptly. For example, one airline made a costly mistake by being unprepared for the sudden spike in demand for leisure flights over the recent Easter holiday. As recovery will likely be uneven, airlines will have to figure out how to have aircraft, pilots, and crew on standby so they can increase capacity quickly whenever there’s a need. Organizations can meet regularly to discuss data-driven insights and align on next steps.

Embed agility into planning

It pays to have a detailed plan and strategy for different recovery scenarios in place. When demand picks up, many firms may find that they don’t have the time to pause and think through their strategies.

When it comes to organizing business trips for employees, corporate-travel planners will need to take into account four considerations:

  • First, the factors that affect whether corporate travel should increase: for example, local and regional infection levels, customer demand, and competitive actions.
  • Second, the relevant data sources used to evaluate these factors: these could include public-health indicators, customer surveys, data from travel partners on industry trends and competitor behavior, and real-time pricing from GDSs consistent with typical corporate agreements, even as airline-fare classes go through realignments.
  • Third, company policies on business travel: What distance-based policies should staff adhere to? Should they use rental cars, rideshares, taxis, or flights? When should they wear masks or engage in group gatherings? How (and should) companies distinguish between what activities vaccinated and unvaccinated employees can participate in?
  • Fourth, information needed by travelers: this includes websites, travel help desks, and messaging.

A US health-products wholesaler and manufacturer provides an example of how these considerations work together. Currently, the company’s factories are open, while corporate offices remain closed and corporate travel is at a standstill. The company recently decided to stage-gate the resumption of corporate travel, starting with executives. Critical sales meetings and conferences will be in the next wave of business trips, followed by general sales and internal corporate activities, and finally, internal training and events. The level of corporate travel varies by state, based on local infection and vaccination rates. The company also set up tracking codes in its customer-relationship-management system to monitor when sales are won or lost due to competitive travel, which involved working with its corporate travel agent to get data on corporate-travel bookings.

The company instituted different policies for each level, including when masks must be worn, the permitted group size for indoor gatherings, and what lodging choices should be made (for example, home shares are avoided for safety and sanitation reasons). The company is developing internal brochures and a communications plan to keep its employees informed.

Personalize experiences based on safety and comfort

Safety and comfort are crucial elements in the travel experience, and they can sometimes pull in opposite directions. More can be done to bridge this gap. Both employers and travel companies could find ways to give passengers peace of mind and improve comfort and convenience. The guiding principle here is giving the traveler greater control over decisions that affect their sense of comfort and security.

For instance, airlines can personalize flight experiences by improving the functionality of their mobile apps to allow passengers to preorder their meals and snacks or make special requests. Hotels may let guests decide on the frequency and timing of housekeeping. They might consider offering initiatives that improve guests’ physical and mental well-being, for example, by offering virtual trainers to guide meditation or fitness practices. Suppliers could also consider offering radically transparent flexibility policies and allow customers a greater range of options with different associated fees for cancellations and changes.

Communicate with clarity

Even the most seasoned travelers have to accept that traveling has changed. Masks have become ubiquitous, and border restrictions, boarding procedures, and hygiene requirements seem to be ever changing. It’s critical that organizations communicate clearly what their corporate-travel policies are at any given moment in time, for every stage of the journey—from pre- to post-trip.

It helps for organizations to be extra proactive in communicating any type of change, whether regarding company-wide strategic policies or more granular details such as the company’s preferred rideshare or car-rental options for corporate travel. When changes in operations are made, companies can take special care to ensure the availability of amenities. Leadership can play a prominent role in modeling how to travel in this new reality by clearly reiterating company policies. Information websites, travel help desks, and easily digestible infographics could all be used to get the message across. Keep channels of communication open and allow employees to give feedback and raise concerns as and when they arise.

Employees, too, will go through an adjustment period as they resume their business trips. Leadership can communicate that it’s OK for them to take it slowly and that they should raise concerns if they ever feel unsafe.

Some corporate travelers will find they have to adapt quickly to the many changes in business travel, while others will have the luxury of easing themselves in over a longer period. Unpredictability will continue to be a fact of life, but one thing is certain: if everyone plays their part well (and smartly, by leveraging the technologies and processes at our disposal), the resumption of corporate travel is possible.

Jenna Benefield is a consultant in McKinsey’s Philadelphia office, Vik Krishnan is a partner in the San Francisco office, Esteban Ramirez is the capabilities and insights team leader in the San Jose office, and Matthew Straus is an associate partner in the Chicago office.

The authors wish to thank Guenter Fuchs, Jennifer Heller, and Jillian Tellez for their contributions to this article.

This article was edited by Jason Li, a senior editor in the Shanghai office.

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Corporate travel webinar

Corporate travel: The long road to recovery

After slow end to 2022, the business travel outlook is turning more positive for 2023

There is a growing sense that lower levels of business flying are here to stay, with many still expecting top executives to set corporate flying reduction targets, driven by cost savings, changing travel habits and sustainability needs.

Messaging regarding the recovery of the business travel segment remains mixed.

Since the onset of the COVID-19 pandemic, a number of the industry's leading voices have claimed that business travel will never fully recover due to changing working habits - namely, remote working and digital nomadism; company cost reduction; and a growing awareness of environmental issues.

Indeed, international business travel has been recovering at a much slower rate than leisure tourism.

  • Recovery in business travel slowed in 2H2022...but rapid recovery is expected for 2023.
  • Confidence in business travel nearly fully recovered to the levels from before the COVID-19 pandemic.
  • Suppliers are highly optimistic about the outlook for business travel; higher spend trend echoed by travel buyers and procurement professionals.
  • Customer meetings and new business prospects to hold weight of business travel investment.
  • A large part of the recovery in US business travel spending has been due to the growth of prices - such as for airfares, car rentals and accommodation.
  • COVID-19 has produced a range of changes that have modified the landscape of demand for business travel globally.
  • Hybrid and remote working arrangements have persisted for a large proportion of workforces globally.
  • Additional layers of corporate travel approvals and duty of care arrangements introduced during the pandemic have proved stubborn to remove.
  • Sustainability considerations are also weighing much more heavily on travel activity.

Recovery in business travel slowed in 2H2022...

The global recovery in business travel experienced a pause over much of 2H2022.

After a rapid bounce-back of business travel during 1H2022, the expectation had largely been that the sector would have a continued, if steady, recovery over the second half of the year. However, in the face of rising travel costs due to inflationary pressures, airline operational chaos across multiple regions, and wider concerns about the macroeconomic outlook - businesses revised their plans and travel and budgets were largely static.

This was clearly evident when listening to comments from some of the leading airlines in the US , where business travel recovery had been strong.

In early Dec-2022 United Airlines CEO Scott Kirby stated that business travel had "plateaued" in late 2022, adding that this was "indicative of pre-recessionary behaviour". Delta Air Lines President Glen Hauenstein reported at the start of Jan-2023 that corporate travel demand had been "steady" over 4Q2022, with domestic corporate sales recovering to 80% of 4Q2019 levels.

Alaska Airlines CEO Ben Minicucci reported that large Silicon Valley technology companies had largely "turned off" business travel in late 2022.

Airlines Reporting Corporation : US corporate and leisure ticket bookings (percentage vs 2019), 2021-2023

corporate travel recovery 2022

Source: Airlines Reporting Corporation .

...but rapid recovery expected for 2023

Despite the recent slowing performance, there is an increasing undercurrent of positive expectations for business travel for 2023.

Airlines, corporate travel management organisations, travel agencies and business travel associations are now pointing to a rapid recovery for 2023, particularly when it comes to business spending.

Global forward-ticketing data from Forward Keys indicates that after a slowing in business ticket sales over 2H2022, forward sales indicate that corporate air travel is due to accelerate through the early part of 2023.

ForwardKeys: forward business and leisure air ticket data, 2022-2023

corporate travel recovery 2022

Source: ForwardKeys.

The Global Business Travel Association (GNTA) projects global business travel spending of just under USD1.2 trillion in 2023.

While this is still down, around USD273 billion down on 2019 levels (-19.1%), the outlook is for overall spending to increase 24.2% year-on-year for 2023.

GBTA : business travel spending outlook, 2019-2026

corporate travel recovery 2022

Source: Global Business Travel Association .

Confidence in business travel nearly fully recovered to levels before the pandemic

GBTA 's Business Travel Outlook Poll for 1Q2023 found expectations for business travel in 2023, with confidence nearly fully recovered to levels before the COVID pandemic.

Of travel buyers - 91% reported that they feel that employees at their company are now either 'somewhat willing' or 'very willing' to travel for work in the current environment.

This is up from just 64% of reported workers who were willing to travel in Feb-2022, and 86% in Oct-2022.

According to GBTA 's polling, 78% travel managers globally expect their companies will engage in more business travel in 2023.

Expectations about travel volumes increases are almost uniform between the North America , Latin America , Europe and the Asia Pacific regions.

Just 7% of travel managers expect reduced travel.

Reduced travel expectations are lowest with travel managers in North America (6%) and the Asia Pacific (7%), and higher with managers in Europe (10%) and Latin America (13%).

Travel buyer/procurement: professional expectations for 2023 business travel volumes

corporate travel recovery 2022

More travel suppliers expect increased spending on travel by their corporate customers

Further to this, GBTA 's data shows that 86% of travel suppliers expect spending on travel by their corporate customers will increase in 2023 - up from 80% in the association's Oct-2022 survey.

This confidence is high, regardless of region - all travel suppliers surveys in the Asia Pacific expect spending to be somewhat or much higher than it was in 2022, followed by 91% in Latin America , 90% in Europe and 85% in North America .

Just 1% expect reduced spending by corporate customers.

Travel supplier/travel management company: expectations for 2023 business travel spending

corporate travel recovery 2022

Suppliers are also highly optimistic about the outlook for business travel.

According to GBTA polling, 24% report feeling 'very optimistic' about the industry's path to recovery, and 65% are optimistic. Just 3% report they are pessimistic about the outlook.

Travel suppliers expectations about higher spend are echoed by travel buyers and procurement professionals. Of those polled, 46% expect a higher budget for travel programmes for 2023 when compared to 2022, while 41% expect budgets will be about the same as the previous year.

Customer meetings and new business prospects to hold weight of business travel investment

The key area for business travel spending in 2023 is expected to be for trips for sales staff or account managers to meet with customers or new business prospects.

On average, travel managers estimate that their companies will allocate 28% of their travel spend for these purposes in 2023. This is followed by spending on trips for internal company meetings (19%) and spending on attending conferences, trade shows and other industry events (18%).

North American business travel to return to close to normal in 2023

The US Travel Association (USTA) project that the volume of business travel by air will recover to around 98% of pre-pandemic levels in 2023, with recovery back above 100% in 2024.

Domestic travel is at or above pre-pandemic levels, but international arrivals are still in recovery mode.

For 2022, inbound arrivals by foreign nationals into the US were down 24% compared to 2109. This was chiefly due to the slow rebound of traffic from the Asia Pacific , as well as some sluggishness in the early part of the year in Europe and parts of Latin America .

As of the start of Feb-2023, arrivals from mainland China were down 97% when compared to 2019, and arrivals from Hong Kong were still down by 80%.

Inbound travel from Japan was down 41.6%, and from Australia it was down 30.4%.

From Europe , UK arrivals were down 18.5%, while arrivals from Italy were still 14.2% below pre-pandemic levels and German arrivals were down 7%. Of the main Latin American markets, arrivals from Brazil were still a third below 2019 levels.

USTA estimates for Dec-2022 were that US business travel spending would be USD97 billion, which was an increase of 3% compared to pre-pandemic levels.

US business travel forecast: volume, percentage of 2019 levels, 2019-2026

corporate travel recovery 2022

Source: US Travel Association.

A large part of the recovery in US business travel spending has been due to the growth of prices, such as for airfares, car rentals and accommodation.

According to the USTA, airfares rose 28.5% year-on-year for the full year 2022.

US Bureau of Transport Statistics data shows US domestic fares averaged USD384 in 3Q2022. This is up from an (inflation adjusted) average domestic fare of USD279 in 3Q2020, an increase of 37.4% over the two-year period, and up 12.8% over the past 12 months.

US average domestic round trip airfares, by quarter, 1Q2019- 3Q2022

corporate travel recovery 2022

Source: US Bureau of Transportation Statistics.

Data from the corporate travel solutions provider Emburse shows that average spend per round trip domestic business travel by air for 4Q2022 was USD548, putting it just ahead of 4Q2019 levels.

Spend per round trip on international business travel was significantly higher: USD2113 in 4Q2022, vs USD1804 in 4Q2019 (an increase of 17.1%).

Domestic and international air travel: average spend per round trip, 4Q2019-4Q2022

corporate travel recovery 2022

Source: Emburse.

New hope for full recovery in 2023

COVID-19 has produced a range of changes that have altered the landscape of demand for business travel globally - some of which have slowed the recovery, and others that are contributing to business travel coming back, albeit in modified form or with higher spending.

Hybrid and remote working arrangements have persisted for a large proportion of workforces globally, cutting into historical business travel volumes, while at the same time creating greater demand for 'bleisure' travel.

Although video conferencing technology became ubiquitous during the pandemic, enterprises continue to report strong demand for face-to-face meetings, particularly given the uncertainties in global supply chains and the need to train new staff working from remote locations.

Additional layers of corporate travel approvals and duty of care arrangements introduced during the pandemic have proved stubborn to remove - particularly in large corporations. The response has been to consolidate multiple smaller business trips into larger - and often more costly - single trips.

In this same vein, sustainability considerations are also weighing much more heavily on travel activity, but businesses have also shown greater willingness to spend money to be good corporate citizens and offset the impact of their travel.

Despite the structural trends and concerns about an economic slowdown in developed economies, business travel has renewed its upwards trend.

Although the recovery is happening more slowly than expected, and is still well below where most airlines would like it to be, there is renewed confidence in the recovery outlook for 2023.

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Will business travel ever completely return?

Well past the second anniversary of the pandemic, business travel has yet to recover. There have been green shoots of hope seen in increasing weekday demand across the U.S. and U.K. as well as signs of recovery in traditionally business-focused urban hotels. However, consumer sentiment suggests a full return to pre-COVID levels of business travel may never occur. If there is full recovery in terms of volume, the composition of the segment will probably look different.

Business sentiment moving in the wrong direction

STR’s consumer research in July 2022 produced telling insights into the state of business travel across the globe. When roughly 400 global business travelers were asked to think about their likelihood to travel for business both now and when the pandemic is “over,” the results, remained in negative territory.

More than half (55%) of respondents are less likely to travel overnight for business now compared with pre-pandemic time, while a lower percentage (40%) are more likely to travel for overnight business when the pandemic ends. Net propensity to travel, which is the difference between those more and less likely to travel is -49% for business travel today and -27% for business travel post-pandemic. 

Much of the travel landscape has changed with workforce dynamics (remote work and blended travel or “bleisure”), the efficiency and costs savings of video meetings, and sustainability becoming more significant considerations in the decision to travel for work. Business travel sentiment in July 2022 dropped after showing a healthy increase in May 2022. Recession fears and recent air travel delays are likely adding to further disincentive to travel.

Business travel is not going extinct

The good news is just under half of business travelers do plan to travel in the next 12 months. Consumers are traveling for business, just not at the volume the industry had grown accustom pre-pandemic. The recent drop from May to July was possibly influenced by some of the air travel disruptions experienced over the past months.

Additionally, a recently released Global Travel Association report cites global business travel coming back albeit against significant headwinds. Booking trends tracked by technology company, Tripbam , reported at the Hotel Data Conference showed corporate bookings trending up over the past couple months—although still well below 2019 levels.

What type of business travel will return?

Travel for group events (defined as an event requiring a room block of 10 or more rooms) has already made significant strides in recovery as evidenced by the rise in U.S. group demand over the last six months (relative to the matched month in 2019). June 2022 group demand was at 95% of the 2019 comparable. As most group events, historically speaking, tend to be business focused, it is an encouraging sign that this type of travel is already returning. Of course, it is important to acknowledge the shift in groups during the pandemic to those that are leisure-based (weddings, traveling youth sports, etc.).

The continued strength of group travel is further highlighted by the business travelers surveyed who were asked about the types of business travel they plan to take in the future. Business travel for group gatherings was the travel type perceived most positively.

Almost two-thirds of consumers plan to travel the same or more for group gatherings, such as industry conferences (63%) or training and team building events (61%). The increase in remote workers could be influencing this need for teams to gather and may become a more significant business travel segment in the future. It is important for the hotel industry to understand potential new traveler types and respond by thinking about the needs of this business traveler. Potentially setting aside small areas for team meetings, and adapting F&B options around a “working lunch,” are possible changes that can help along with creating relationships with businesses in the area who have a large remote worker base.

The types of travel perceived less positively were individual, face-to-face interactions. Travel to meet with customers and visits to company HQs ranked after the group travel types with over half planning to travel at the same or greater levels. It was surprising to see that meeting with customers did not rank higher given industry anecdotes about sales teams eager to beat their competition in the quest to re-engage with customers. Further exploration of the data showed that for the high-frequency business traveler (6+ trips annually), who is more often salespeople, meeting with customers jumped to the top in ranking.

The lowest ranked types of business travel were for individual meetings with colleagues and suppliers/vendors with around half planning this type of travel at the same or greater levels compared with pre-pandemic times. Worker adaption and use of video technology makes conducting these types of meetings an attractive alternative, which may explain why the need to travel for these types of meetings is perceived least positively currently.

The business traveler of the future presents new opportunities

While business travel’s future is unclear, there are two things we would label as certain. Business travel will not go extinct and, given that the future of work is changing, the future of travel for work is going to change as well. These changes present new openings for the industry to target the new business traveler. The pandemic has disrupted traditional behaviors. This disruption presents hotels with opportunity to engage with travelers in perhaps previously unseen ways.

corporate travel recovery 2022

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Boeing executives got twice as much in plane perks as the company said

The plane manufacturer disclosed that its c-suite got more than $500,000 in corporate aircraft compensation beyond what it previously said.

Boeing headquarters

There may be a service that helps people afraid to fly on Boeing planes find new flights, but one group that’s not scared to fly Boeing are the company’s executives. The plane manufacturer recently disclosed that its C-suite got more than $500,000 in corporate aircraft compensation beyond what it previously said.

The Wall Street Journal reported Thursday that the revelations, spelled out in Boeing’s 100-plus-page 2023 proxy statement filed last week with the Securities and Exchange Commission, came as the result of the paper’s examination last year of the company’s culture around executive travel.

“The amounts attributable to perquisites and other personal benefits reported in this column for [outgoing CEO Dave] Calhoun, [CFO Brian] West, [outgoing commercial airplanes division head Stanley] Deal and [military division head Ted] Colbert for 2022 and 2021, and the resulting ‘Total All Other Compensation’ amounts previously reported for those years, have been revised as set forth below to reflect certain aircraft usage and other travel expenses that were not previously classified as perquisites by the Company,” the company said in its proxy statement.

Boeing has to report how much plane travel its executives do because personal use of company planes counts as income for both tax reasons and as a matter of shareholder interest — the government and investors both want to know how much executives get compensated, in all forms. It’s worth mentioning that Boeing’s CEO “is required to use Company aircraft for all business and personal travel for security reasons,” as a matter of policy.

🛩️ Calhoun got $142,000 more in plane travel in 2021 and 2022 than previously disclosed, a 44% increase

🛩️ West got $250,000 more in plane travel in 2021 and 2022 than previously disclosed, a 229% increase

🛩️ Deal got $74,000 more in plane travel in 2021 and 2022 than previously disclosed; previously Boeing said he got $63,000 in 2022 plane perks, but not how much he got in 2021

🛩️ Colbert got $79,000 more in plane travel in 2021 and 2022 than previously disclosed

Boeing did not previously say exactly how much plane travel Deal and Colbert received in 2021 and 2022 because it only tells shareholders if its executives receive such perks when the value is “the greater of $25,000 or 10% of all benefits.” The additional compensation reported was about $545,000, or double what the company said earlier.

The Journal reports that, according a recording of an internal meeting in November, Calhoun tried to downplay his travel habits. “I don’t want anybody, by the way, to misinterpret a silly article that got published in The Wall Street Journal about me traveling a lot,” Calhoun said, according to a recording of the meeting the Journal reviewed. “That’s my objective. That is what I want to do. That is what I want everybody at the enterprise level to do.”

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Lack of Chinese visitors hinders PH tourism growth

Boracay among the top tourist destinations in the country

Photo by Jack Jarilla

The slow return of Chinese tourists has been holding back travel recovery in the Philippines, Bank of America (BofA) said in a new report that highlighted the “uneven” recovery in Asia tourism.

As the region’s tourism sector enters the “last” leg of recovery from the pandemic’s onslaught, BofA said the Philippines, China, Hong Kong and Taiwan were the “laggards” in Asia as tourist arrivals in these destinations have yet to reach prepandemic levels.

In the Philippines, BofA noted that foreign visitor arrivals were still 76 percent of prepandemic levels as of February this year, albeit much better than Hong Kong’s 73.7 percent and Taiwan’s January 2024 figure of 69.6 percent.

Among the laggards, BofA said China was an “outlier” after it reopened its economy much later than other Asian destinations. Data compiled by the bank showed foreign tourist arrivals in China were 36.3 percent below prepandemic level as of December 2023.

In turn, the later reopening of China’s economy weighed on tourism recovery in countries that heavily depend on Chinese holidaymakers, such as the Philippines and Hong Kong.

Data compiled by BofA showed Chinese arrivals are only tracking at 20 to 30 percent of prepandemic levels in the Philippines, below trends elsewhere in the region. And the recovery is unlikely to speed up anytime soon, with BofA noting the “changing preferences” of Chinese consumers.

“The typical Chinese traveler these days is increasingly interested in exploring domestic cities that offer unique cultural experiences. This has also slowed their return to international destinations,” BofA said.

“The return of Chinese travelers might be a gradual process,” it added.

On the flip side, tourism is now back to prepandemic vigor in Japan and Vietnam as they benefited from the weakness of their currencies.

BofA said Malaysia, Singapore and Thailand were among the “hopefuls” in Asia after seeing a sharp rebound in international arrivals in recent months. Meanwhile, India, South Korea, Australia, New Zealand and Indonesia were in the “middle of the pack” whose visitor entries are tracking at 80 to 85 percent of prepandemic levels so far.

For this year, the Bangko Sentral ng Pilipinas (BSP) forecasts tourism receipts—a source of dollars for the economy—to grow by 50 percent. That would contribute to the projected $700 million dollar surplus in 2024 which, if realized, would be smaller than the $3.7 billion windfall recorded in 2023.

Moving forward, BofA said Asian economies with falling currencies would continue to attract more foreign visitors that are looking for cheap holiday destinations.

“FX colleagues expect currencies across Asia to strengthen across the board against the USD over the next two years but remain weak by historical standards,” the Bank said.

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“We therefore think countries with weaker currencies, particularly Japan, will continue to attract tourists in the near and medium term,” it added. INQ

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Boeing execs were using the company's private jets for personal trips more than we thought

  • Boeing execs used an additional $545,520 for personal travel expenses in 2021 and 2022.
  • The Wall Street Journal first reported Boeing had improperly classified personal trips on private jets as business travel.
  • The IRS said in February it was beginning to audit corporate jet usage.

Insider Today

Boeing's execs have been using the company's private jets for personal travel — and it's more than we thought.

Top Boeing executives used an additional $545,520 for personal jet travel in 2021 and 2022 than was initially reported, according to an amended SEC filing .

The Wall Street Journal reports Boeing made the revisions after an investigation last year into the use of private jets by its top executives.

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The Journal found that, in some cases, personal trips had been improperly classified as business travel.

"Following a review commenced by the company in 2023, we found certain items, primarily aircraft, and ground transportation costs … were not previously classified as perquisites by the Company but should have been classified as such in accordance with SEC rules and guidance," the company said in its proxy statement .

The revised stats for Boeing's outgoing CEO, Dave Calhoun, amounted to an additional $142,315 in personal travel in 2021 and 2022.

That said, Boeing wrote in the filing that its CEO "is required to use company aircraft for all business and personal travel for security reasons."

The other execs whose travel was revised in the filing include CFO Brian West, former president and CEO of commercial airplanes Stanley Deal, and president and CEO of Boeing defense, space, and security Theodore Colbert.

Boeing did not immediately respond to a request for comment from Business Insider.

Calhoun recently said he would step down at the end of 2024 after he faced significant scrutiny following the Alaska Airlines 737 Max 9 door blowout in January.

The Journal notes there are tax implications when company jets are taken for personal travel and that the IRS said it will begin auditing corporate jet usage this year.

The Journal's 2023 investigation found that Boeing's fleet of private jets had made around 400 trips to or from airports near Calhoun's two homes in New Hampshire and South Carolina since roughly 2020 after Boeing moved its headquarters from Chicago to Arlington, VA., in 2022, and attempted to get staff to return to the office.

Watch: While Delta's business is 'extremely robust,' the airline's marketing chief stays focused on the data

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After slow end to 2022, the business travel outlook is turning more positive for 2023

There is a growing sense that lower levels of business flying are here to stay, with many still expecting top executives to set corporate flying reduction targets, driven by cost savings, changing travel habits and sustainability needs.

Messaging regarding the recovery of the business travel segment remains mixed.

Since the onset of the COVID-19 pandemic, a number of the industry's leading voices have claimed that business travel will never fully recover due to changing working habits - namely, remote working and digital nomadism; company cost reduction; and a growing awareness of environmental issues.

Indeed, international business travel has been recovering at a much slower rate than leisure tourism.

Recovery in business travel slowed in 2H2022...

The global recovery in business travel experienced a pause over much of 2H2022.

After a rapid bounce-back of business travel during 1H2022, the expectation had largely been that the sector would have a continued, if steady, recovery over the second half of the year. However, in the face of rising travel costs due to inflationary pressures, airline operational chaos across multiple regions, and wider concerns about the macroeconomic outlook - businesses revised their plans and travel and budgets were largely static.

This was clearly evident when listening to comments from some of the leading airlines in the US, where business travel recovery had been strong.

In early Dec-2022 United Airlines CEO Scott Kirby stated that business travel had "plateaued" in late 2022, adding that this was "indicative of pre-recessionary behaviour". Delta Air Lines President Glen Hauenstein reported at the start of Jan-2023 that corporate travel demand had been "steady" over 4Q2022, with domestic corporate sales recovering to 80% of 4Q2019 levels.

Alaska Airlines CEO Ben Minicucci reported that large Silicon Valley technology companies had largely "turned off" business travel in late 2022.

Airlines Reporting Corporation: US corporate and leisure ticket bookings (percentage vs 2019), 2021-2023

corporate travel recovery 2022

Source: Airlines Reporting Corporation.

...but rapid recovery expected for 2023

Despite the recent slowing performance, there is an increasing undercurrent of positive expectations for business travel for 2023.

Airlines, corporate travel management organisations, travel agencies and business travel associations are now pointing to a rapid recovery for 2023, particularly when it comes to business spending.

Global forward-ticketing data from Forward Keys indicates that after a slowing in business ticket sales over 2H2022, forward sales indicate that corporate air travel is due to accelerate through the early part of 2023.

ForwardKeys: forward business and leisure air ticket data, 2022-2023

corporate travel recovery 2022

Source: ForwardKeys.

The Global Business Travel Association (GNTA) projects global business travel spending of just under USD1.2 trillion in 2023.

While this is still down, around USD273 billion down on 2019 levels (-19.1%), the outlook is for overall spending to increase 24.2% year-on-year for 2023.

GBTA: business travel spending outlook, 2019-2026

corporate travel recovery 2022

Source: Global Business Travel Association.

Confidence in business travel nearly fully recovered to levels before the pandemic

GBTA's Business Travel Outlook Poll for 1Q2023 found expectations for business travel in 2023, with confidence nearly fully recovered to levels before the COVID pandemic.

Of travel buyers - 91% reported that they feel that employees at their company are now either 'somewhat willing' or 'very willing' to travel for work in the current environment.

This is up from just 64% of reported workers who were willing to travel in Feb-2022, and 86% in Oct-2022.

According to GBTA's polling, 78% travel managers globally expect their companies will engage in more business travel in 2023.

Expectations about travel volumes increases are almost uniform between the North America, Latin America, Europe and the Asia Pacific regions.

Just 7% of travel managers expect reduced travel.

Reduced travel expectations are lowest with travel managers in North America (6%) and the Asia Pacific (7%), and higher with managers in Europe (10%) and Latin America (13%).

Travel buyer/procurement: professional expectations for 2023 business travel volumes

corporate travel recovery 2022

More travel suppliers expect increased spending on travel by their corporate customers

Further to this, GBTA's data shows that 86% of travel suppliers expect spending on travel by their corporate customers will increase in 2023 - up from 80% in the association's Oct-2022 survey.

This confidence is high, regardless of region - all travel suppliers surveys in the Asia Pacific expect spending to be somewhat or much higher than it was in 2022, followed by 91% in Latin America, 90% in Europe and 85% in North America.

Just 1% expect reduced spending by corporate customers.

Travel supplier/travel management company: expectations for 2023 business travel spending

corporate travel recovery 2022

Suppliers are also highly optimistic about the outlook for business travel.

According to GBTA polling, 24% report feeling 'very optimistic' about the industry's path to recovery, and 65% are optimistic. Just 3% report they are pessimistic about the outlook.

Travel suppliers expectations about higher spend are echoed by travel buyers and procurement professionals. Of those polled, 46% expect a higher budget for travel programmes for 2023 when compared to 2022, while 41% expect budgets will be about the same as the previous year.

Customer meetings and new business prospects to hold weight of business travel investment

The key area for business travel spending in 2023 is expected to be for trips for sales staff or account managers to meet with customers or new business prospects.

On average, travel managers estimate that their companies will allocate 28% of their travel spend for these purposes in 2023. This is followed by spending on trips for internal company meetings (19%) and spending on attending conferences, trade shows and other industry events (18%).

North American business travel to return to close to normal in 2023

The US Travel Association (USTA) project that the volume of business travel by air will recover to around 98% of pre-pandemic levels in 2023, with recovery back above 100% in 2024.

Domestic travel is at or above pre-pandemic levels, but international arrivals are still in recovery mode.

For 2022, inbound arrivals by foreign nationals into the US were down 24% compared to 2109. This was chiefly due to the slow rebound of traffic from the Asia Pacific, as well as some sluggishness in the early part of the year in Europe and parts of Latin America.

As of the start of Feb-2023, arrivals from mainland China were down 97% when compared to 2019, and arrivals from Hong Kong were still down by 80%.

Inbound travel from Japan was down 41.6%, and from Australia it was down 30.4%.

From Europe, UK arrivals were down 18.5%, while arrivals from Italy were still 14.2% below pre-pandemic levels and German arrivals were down 7%. Of the main Latin American markets, arrivals from Brazil were still a third below 2019 levels.

USTA estimates for Dec-2022 were that US business travel spending would be USD97 billion, which was an increase of 3% compared to pre-pandemic levels.

US business travel forecast: volume, percentage of 2019 levels, 2019-2026

corporate travel recovery 2022

Source: US Travel Association.

A large part of the recovery in US business travel spending has been due to the growth of prices, such as for airfares, car rentals and accommodation.

According to the USTA, airfares rose 28.5% year-on-year for the full year 2022.

US Bureau of Transport Statistics data shows US domestic fares averaged USD384 in 3Q2022. This is up from an (inflation adjusted) average domestic fare of USD279 in 3Q2020, an increase of 37.4% over the two-year period, and up 12.8% over the past 12 months.

US average domestic round trip airfares, by quarter, 1Q2019- 3Q2022

corporate travel recovery 2022

Source: US Bureau of Transportation Statistics.

Data from the corporate travel solutions provider Emburse shows that average spend per round trip domestic business travel by air for 4Q2022 was USD548, putting it just ahead of 4Q2019 levels.

Spend per round trip on international business travel was significantly higher: USD2113 in 4Q2022, vs USD1804 in 4Q2019 (an increase of 17.1%).

Domestic and international air travel: average spend per round trip, 4Q2019-4Q2022

corporate travel recovery 2022

Source: Emburse.

New hope for full recovery in 2023

COVID-19 has produced a range of changes that have altered the landscape of demand for business travel globally - some of which have slowed the recovery, and others that are contributing to business travel coming back, albeit in modified form or with higher spending.

Hybrid and remote working arrangements have persisted for a large proportion of workforces globally, cutting into historical business travel volumes, while at the same time creating greater demand for 'bleisure' travel.

Although video conferencing technology became ubiquitous during the pandemic, enterprises continue to report strong demand for face-to-face meetings, particularly given the uncertainties in global supply chains and the need to train new staff working from remote locations.

Additional layers of corporate travel approvals and duty of care arrangements introduced during the pandemic have proved stubborn to remove - particularly in large corporations. The response has been to consolidate multiple smaller business trips into larger - and often more costly - single trips.

In this same vein, sustainability considerations are also weighing much more heavily on travel activity, but businesses have also shown greater willingness to spend money to be good corporate citizens and offset the impact of their travel.

Despite the structural trends and concerns about an economic slowdown in developed economies, business travel has renewed its upwards trend.

Although the recovery is happening more slowly than expected, and is still well below where most airlines would like it to be, there is renewed confidence in the recovery outlook for 2023.

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On January 5, 2024, Boeing's Management Overlooked Safety Warnings And Disregarded Engineer Alarms Prior To The 737 Max Crashes

Posted: April 15, 2024 | Last updated: April 15, 2024

<p>Engineers at Boeing have reportedly been voicing concerns about potential quality problems since as early as 2001, yet these warnings appear to have been consistently overlooked by management.</p>

Engineers at Boeing have reportedly been voicing concerns about potential quality problems since as early as 2001, yet these warnings appear to have been consistently overlooked by management.

<p>Documents were filed in federal court alleging that former employees at the company’s subcontractor repeatedly warned corporate officials about safety problems and were told to falsify records. One of the employees at Spirit AeroSystems, which reportedly manufactured the door plug that blew out of an Alaska Airlines flight over Portland, Oregon, allegedly told company officials about an “excessive amount of defects,” according to the federal complaint and corresponding internal corporate documents reviewed by The Lever.</p>

Documents were filed in federal court alleging that former employees at the company’s subcontractor repeatedly warned corporate officials about safety problems and were told to falsify records. One of the employees at Spirit AeroSystems, which reportedly manufactured the door plug that blew out of an Alaska Airlines flight over Portland, Oregon, allegedly told company officials about an “excessive amount of defects,” according to the federal complaint and corresponding internal corporate documents reviewed by The Lever.

<p>“The FAA’s chronic, systemic, and longtime funding gap is a key problem in having the staffing, resources, and travel budgets to provide proper oversight,” said William McGee, a senior fellow for aviation and travel at the American Economic Liberties Project, who has served on a panel advising the U.S. Transportation Department. “Ultimately, the FAA has failed to provide adequate policing of outsourced work, both at aircraft manufacturing facilities and at airline maintenance facilities.”</p>

“The FAA’s chronic, systemic, and longtime funding gap is a key problem in having the staffing, resources, and travel budgets to provide proper oversight,” said William McGee, a senior fellow for aviation and travel at the American Economic Liberties Project, who has served on a panel advising the U.S. Transportation Department. “Ultimately, the FAA has failed to provide adequate policing of outsourced work, both at aircraft manufacturing facilities and at airline maintenance facilities.”

<p>Adding to the chorus of concerns, Nadia Milleron, whose daughter was among those killed in the 2019 Ethiopian Airlines Flight 302 crash, calls for greater accountability and the empowerment of passengers with the right to choose, given the ongoing issues with the MAX planes.</p>

Adding to the chorus of concerns, Nadia Milleron, whose daughter was among those killed in the 2019 Ethiopian Airlines Flight 302 crash, calls for greater accountability and the empowerment of passengers with the right to choose, given the ongoing issues with the MAX planes.

<p>Richard Aboulafia, aviation industry analyst and managing director of Washington-based AeroDynamic Advisory, told Al Jazeera that the warning lights were likely the result of a technical glitch. “They ignored it because, strangely, the pressure differential came on while it was on the ground, which means it was a glitch. There’s no pressure differential while you’re on the ground,” he explained. The cabin pressure can only vary when the aircraft is in the air, which is why it was acceptable to ignore the warning and fly the plane over land, he said.</p>  <p>related images you might be interested.</p>

Richard Aboulafia, aviation industry analyst and managing director of Washington-based AeroDynamic Advisory, told Al Jazeera that the warning lights were likely the result of a technical glitch. “They ignored it because, strangely, the pressure differential came on while it was on the ground, which means it was a glitch. There’s no pressure differential while you’re on the ground,” he explained. The cabin pressure can only vary when the aircraft is in the air, which is why it was acceptable to ignore the warning and fly the plane over land, he said.

related images you might be interested.

corporate travel recovery 2022

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AT&T Resets Millions of Passcodes After Customer Records Are Leaked

Nearly eight million customers and 65.4 million former account holders were affected by the data breach, the company said.

A brick AT&T storefront with its logo above the entrance.

By Aimee Ortiz

The telecommunications giant AT&T announced on Saturday that it had reset the passcodes of 7.6 million customers after it determined that compromised customer data was “released on the dark web.”

“Our internal teams are working with external cybersecurity experts to analyze the situation,” AT&T said . “To the best of our knowledge, the compromised data appears to be from 2019 or earlier and does not contain personal financial information or call history.”

The company said that “information varied by customer and account,” but that it may have included a person’s full name, email address, mailing address, phone number, Social Security number, date of birth, AT&T account number and passcode.

In addition to those 7.6 million customers, 65.4 million former account holders were also affected.

The company said it would be “reaching out to individuals with compromised sensitive personal information separately and offering complimentary identity theft and credit monitoring services.”

AT&T said it reset the passcodes for those affected and directed customers to a site with details about how to reset them. It also said that it was starting a “robust investigation supported by internal and external cybersecurity experts.”

A company representative did not address specific questions about how the breach happened or why it went unnoticed for so long.

TechCrunch, which first reported on the passcode reset , said it informed AT&T on Monday that “the leaked data contained encrypted passcodes that could be used to access AT&T customer accounts.”

TechCrunch said it delayed publishing its article until the company “could begin resetting customer account passcodes.”

In its report, TechCrunch said that “this is the first time that AT&T has acknowledged that the leaked data belongs to its customers, some three years after a hacker claimed the theft of 73 million AT&T customer records.”

AT&T had previously denied a breach of its systems but how the leak happened was unclear, TechCrunch reported.

AT&T said that it did not know whether the leaked data “originated from AT&T or one of its vendors” and that it “does not have evidence of unauthorized access to its systems resulting in theft of the data set.”

The episode comes after AT&T customers experienced a widespread outage last month that temporarily cut off connections for users across the United States for several hours. The Feb. 22 outage affected customer in cities including Atlanta, Los Angeles and New York.

At its peak, there were around 70,000 reports of disrupted service for the wireless carrier, according to Downdetector.com , which tracks user reports of telecommunication and internet disruptions.

A few days later, AT&T offered customers affected by the outage a $5 credit in an effort to “make it right.”

Aimee Ortiz covers breaking news and other topics. More about Aimee Ortiz

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Destination Canada CEO Bets on New Promotion Fund, World Cup 2026

Dawit Habtemariam

Dawit Habtemariam , Skift

April 11th, 2024 at 11:02 AM EDT

Canada's adapting to changes to its tourism sector and relationship with the Chinese market.

Dawit Habtemariam

Series: Leaders of Travel: Skift C-Suite Series

Leaders of Travel: Skift C-Suite Series

What are the top trends impacting hotels, airlines, and online bookings? We speak to the executives shaping the future of travel.

The U.S., Britain, and other Western destinations are still waiting for Chinese group tours to return to their pre-pandemic levels. Canada, however, has been adapting to the continued absence of Chinese groups. The country has sought other sources of tourism growth, such as through its new fund to attract business events and its plans to co-host the 2026 FIFA World Cup.

“There are some geopolitics going on right now that are having an impact on tourism,” said Destination Canada CEO and president Marsha Walden.

Canada last year surpassed its 2019 tourism revenue thanks to visitors from the U.S., Europe, Mexico, and Australia. It accomplished this feat despite disputes between the leaders of Canada and China souring relations. For over three years, China has banned travel agencies from selling group trips to Canada — traditionally a key tourism source.

In a wide-ranging interview, Destination Canada’s Walden spoke with Skift about a new tourism data project launching in May, a new fund to lure business events that the country launched last month, the country’s preparations for hosting the 2026 FIFA World Cup, and more. The interview has been edited for length and clarity .

Skift: What has been the pace of Canada’s post-pandemic international tourism recovery? 

Marsha Walden:  We’ve already fully recovered in terms of revenue, and we feel really good about that despite some areas of our overall market portfolio that haven’t been performing like they did pre-2019.

China is still missing. There are some geopolitics going on right now that are having an impact on tourism. We don’t have nearly the number of flights that we had from China. We’re currently not on China’s Approved Destination Status (ADS) list. 

That’s not to say that Chinese travelers can’t come to Canada. The ADS ban just prevents group travel from being sold into Canada.

But we’re not necessarily seeing that as a huge negative because it aligns more closely with how we see our strategy going forward, really focusing more on FIT [fully independent travelers] guests who not only have the propensity to spend more but who also experience our country in a different way that adds to our new strategy, which is inviting guests that can really contribute to the wealth and wellbeing of Canadians. The group travel business is less of a concern than it was pre-pandemic.

And despite that, we are still at 104% of revenues from 2019. That’s because we’ve had really good performance out of the U.S., Mexico,  parts of Europe, and Australia. 

Asia generally is taking a little longer to bounce back. Our Japanese and South Korean clients are a little slower to recover as well, but we’re expecting that will turn around in 2024 or 2025.

Getting Ready for the FIFA World Cup

Canada is co-hosting the 2026 FIFA World Cup with the U.S. and Mexico. A major challenge for the U.S. is getting visa wait times down so fans can attend the tournament. What does Canada need to do to make travel easier for World Cup fans?

We do, of course, have visa wait times, but they’re significantly lower than what the U.S. is experiencing right now. I have a lot of confidence that the government’s going to resolve these things prior to FIFA showing up. 

In fact, there are conversations going on between our two nations to streamline how we can make the experience for travelers who are going between countries for games the smoothest it could possibly be. 

What role will Destination Canada play in the World Cup?

The thing that I think is marvelous about FIFA is yes, the event draws millions of people to experience a country, but it’s really the other 4 billion eyeballs that you’ve got on your country and the opportunity to showcase the way you live, what it’s like to visit here.

It’s really the legacy impact over the next four to five years that I think is the most powerful part. From a tourism perspective, yes, it gives an initial nice lift and hit, but it’s that legacy that I think is something that we all work toward, is making sure that we’re just showcased in a way that makes Canada incredibly appealing.

Canada’s New Tourism Promotion Fund

LA Tourism CEO Adam Burke told me that Canada is one of the three names that come up repeatedly from his meetings with travel trade partners. What’s Canada doing to get such attention?

Canada’s partners across the country have really been investing in how to attract business events and reignite interest in [conferences] coming to Canada. They’re working together under our common banner too. Everything from being uniformly dressed to bringing a big contingent of cities to these events and having a slightly different strategy, I would say, than most destinations. 

Destination Canada focuses on what we call the sixth economic growth sector. We pursue businesses that also have significant economic potential for us as a nation beyond tourism. For instance, life sciences, agrotech [agricultural technology], and other areas where Canada wants to position itself in the greater economy are the areas where we help our industry secure events for the future. 

We just launched the International Convention Attraction Fund , and this is an investment by our federal government of 50 million [Canadian dollars] over three years to help secure events that may need an incentive to come to Canada. Our destinations can apply for up to a million dollars to help offset some of the costs of bringing a convention to Canada. 

Is this to help offset the slow recovery of business travel? During its lockdown, Canada lost some conventions and events to other destinations .

Every extra month of delay costs the industry some business. We did see a tremendous surge in re-bookings in the first two years of opening our borders once again. But we’re now at about below 80% of where we were in terms of overall delegates [attendees], and we don’t expect to fully recover for another couple of years, probably 2025. 

However, I think there are lots of things that we’re doing to help position ourselves and to become more competitive. One of which is we have 20 of our cities now participating in measuring their sustainability of events. We can offer events that are more attractive to corporate event producers on a sustainable basis and fully measure the impact of their event.

Celestial Tourism in Canada

Has there been a general rise in interest from international tourists to experience Canada’s celestial events?

Absolutely. There’s been tremendous interest in our Northern Lights product. In fact, a number of operators have said, look, we’re sold out through all of 2024 and 2025.

We also find that it’s a big draw for Japanese and South Korean clients. Last year, we had a big campaign around our Northern Lights. We did a takeover in Times Square of all the outdoor formats available there. 

Another popular niche product is “dark skies,” which are settings where there’s no light pollution and you get the full impact of the galaxy. We have dark sky preserves, many of which are in the northern parts of our provinces. 

Some Canadian Businesses Struggling

Last year, the Tourism Industry Association of Canada found more than half of Canada’s small-and-medium-sized businesses were struggling to pay back their loans to the government , causing a potential wave of shutdowns. Isn’t this a cause for concern?

The recovery has been uneven across the country. The government made significant investments to keep businesses alive. More than 80% of all loans offered by the government are now being repaid.

But for the 20% that were really impacted, those are the ones that are struggling to repay it and looking for extensions. Those government loans have already been extended twice. And so I think there certainly is concern. 

There were about 1.5% fewer tourism businesses in Canada in 2023 than in 2019, which speaks to the impact.

Normally, you’d see business growth. It is of concern, but is it devastating for our industry? No, we have a very healthy and vibrant industry.

But we are going through a period of turnover and change as some people just can’t survive carrying the debt load they had to take on to make it through the pandemic. 

A long-term challenge for Canada emphasized in Destination Canada’s industry report last year was not having the capacity to meet travel demand. With these businesses gone, this will make it even more difficult to deal with this challenge.

Of course it does. That’s why we’re trying to shift our marketing emphasis to ensure that people know that fall and winter are fantastic times to come to Canada as well. It doesn’t have to be all about summer, but we’re working as part of our strategy that we’re about to launch our 2030 strategy in May. 

We’re working with our “North Star partners,” which include all the provinces and territories and major cities and resorts across the province, to really define strategies that will help us attract investment and help us create the return on investment that businesses are seeking to bring their money to Canada.

What’s your new data project?

We’re about to launch our Canadian tourism data collective, something we’ve been working on for a couple of years. Parts of it will go public in mid-May. 

It’s a significant new intelligence platform that brings together statistics from Canada’s national stats agency, Parks Canada, and the private sector to give the most robust view of Canadian tourism that we’ve ever had, both on the demand side, so customer profiles, revenue visitation, all that typical stuff, occupancy. What’s the intensity of tourism in different locations? Where are the investment opportunities? 

It will also help governments at every level make good decisions about the value of tourism in their community because this goes down to a granularity that we’ve never had before. Every community can be looked at — I think it’s 4,000 communities or something in Canada.

Have a confidential tip for Skift? Get in touch

Tags: business events , business travel , canada , ceo interviews , china , corporate travel , international tourism , meetings and events , tourism , travel leaders

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40 facts about elektrostal.

Lanette Mayes

Written by Lanette Mayes

Modified & Updated: 02 Mar 2024

Jessica Corbett

Reviewed by Jessica Corbett

40-facts-about-elektrostal

Elektrostal is a vibrant city located in the Moscow Oblast region of Russia. With a rich history, stunning architecture, and a thriving community, Elektrostal is a city that has much to offer. Whether you are a history buff, nature enthusiast, or simply curious about different cultures, Elektrostal is sure to captivate you.

This article will provide you with 40 fascinating facts about Elektrostal, giving you a better understanding of why this city is worth exploring. From its origins as an industrial hub to its modern-day charm, we will delve into the various aspects that make Elektrostal a unique and must-visit destination.

So, join us as we uncover the hidden treasures of Elektrostal and discover what makes this city a true gem in the heart of Russia.

Key Takeaways:

  • Elektrostal, known as the “Motor City of Russia,” is a vibrant and growing city with a rich industrial history, offering diverse cultural experiences and a strong commitment to environmental sustainability.
  • With its convenient location near Moscow, Elektrostal provides a picturesque landscape, vibrant nightlife, and a range of recreational activities, making it an ideal destination for residents and visitors alike.

Known as the “Motor City of Russia.”

Elektrostal, a city located in the Moscow Oblast region of Russia, earned the nickname “Motor City” due to its significant involvement in the automotive industry.

Home to the Elektrostal Metallurgical Plant.

Elektrostal is renowned for its metallurgical plant, which has been producing high-quality steel and alloys since its establishment in 1916.

Boasts a rich industrial heritage.

Elektrostal has a long history of industrial development, contributing to the growth and progress of the region.

Founded in 1916.

The city of Elektrostal was founded in 1916 as a result of the construction of the Elektrostal Metallurgical Plant.

Located approximately 50 kilometers east of Moscow.

Elektrostal is situated in close proximity to the Russian capital, making it easily accessible for both residents and visitors.

Known for its vibrant cultural scene.

Elektrostal is home to several cultural institutions, including museums, theaters, and art galleries that showcase the city’s rich artistic heritage.

A popular destination for nature lovers.

Surrounded by picturesque landscapes and forests, Elektrostal offers ample opportunities for outdoor activities such as hiking, camping, and birdwatching.

Hosts the annual Elektrostal City Day celebrations.

Every year, Elektrostal organizes festive events and activities to celebrate its founding, bringing together residents and visitors in a spirit of unity and joy.

Has a population of approximately 160,000 people.

Elektrostal is home to a diverse and vibrant community of around 160,000 residents, contributing to its dynamic atmosphere.

Boasts excellent education facilities.

The city is known for its well-established educational institutions, providing quality education to students of all ages.

A center for scientific research and innovation.

Elektrostal serves as an important hub for scientific research, particularly in the fields of metallurgy, materials science, and engineering.

Surrounded by picturesque lakes.

The city is blessed with numerous beautiful lakes, offering scenic views and recreational opportunities for locals and visitors alike.

Well-connected transportation system.

Elektrostal benefits from an efficient transportation network, including highways, railways, and public transportation options, ensuring convenient travel within and beyond the city.

Famous for its traditional Russian cuisine.

Food enthusiasts can indulge in authentic Russian dishes at numerous restaurants and cafes scattered throughout Elektrostal.

Home to notable architectural landmarks.

Elektrostal boasts impressive architecture, including the Church of the Transfiguration of the Lord and the Elektrostal Palace of Culture.

Offers a wide range of recreational facilities.

Residents and visitors can enjoy various recreational activities, such as sports complexes, swimming pools, and fitness centers, enhancing the overall quality of life.

Provides a high standard of healthcare.

Elektrostal is equipped with modern medical facilities, ensuring residents have access to quality healthcare services.

Home to the Elektrostal History Museum.

The Elektrostal History Museum showcases the city’s fascinating past through exhibitions and displays.

A hub for sports enthusiasts.

Elektrostal is passionate about sports, with numerous stadiums, arenas, and sports clubs offering opportunities for athletes and spectators.

Celebrates diverse cultural festivals.

Throughout the year, Elektrostal hosts a variety of cultural festivals, celebrating different ethnicities, traditions, and art forms.

Electric power played a significant role in its early development.

Elektrostal owes its name and initial growth to the establishment of electric power stations and the utilization of electricity in the industrial sector.

Boasts a thriving economy.

The city’s strong industrial base, coupled with its strategic location near Moscow, has contributed to Elektrostal’s prosperous economic status.

Houses the Elektrostal Drama Theater.

The Elektrostal Drama Theater is a cultural centerpiece, attracting theater enthusiasts from far and wide.

Popular destination for winter sports.

Elektrostal’s proximity to ski resorts and winter sport facilities makes it a favorite destination for skiing, snowboarding, and other winter activities.

Promotes environmental sustainability.

Elektrostal prioritizes environmental protection and sustainability, implementing initiatives to reduce pollution and preserve natural resources.

Home to renowned educational institutions.

Elektrostal is known for its prestigious schools and universities, offering a wide range of academic programs to students.

Committed to cultural preservation.

The city values its cultural heritage and takes active steps to preserve and promote traditional customs, crafts, and arts.

Hosts an annual International Film Festival.

The Elektrostal International Film Festival attracts filmmakers and cinema enthusiasts from around the world, showcasing a diverse range of films.

Encourages entrepreneurship and innovation.

Elektrostal supports aspiring entrepreneurs and fosters a culture of innovation, providing opportunities for startups and business development.

Offers a range of housing options.

Elektrostal provides diverse housing options, including apartments, houses, and residential complexes, catering to different lifestyles and budgets.

Home to notable sports teams.

Elektrostal is proud of its sports legacy, with several successful sports teams competing at regional and national levels.

Boasts a vibrant nightlife scene.

Residents and visitors can enjoy a lively nightlife in Elektrostal, with numerous bars, clubs, and entertainment venues.

Promotes cultural exchange and international relations.

Elektrostal actively engages in international partnerships, cultural exchanges, and diplomatic collaborations to foster global connections.

Surrounded by beautiful nature reserves.

Nearby nature reserves, such as the Barybino Forest and Luchinskoye Lake, offer opportunities for nature enthusiasts to explore and appreciate the region’s biodiversity.

Commemorates historical events.

The city pays tribute to significant historical events through memorials, monuments, and exhibitions, ensuring the preservation of collective memory.

Promotes sports and youth development.

Elektrostal invests in sports infrastructure and programs to encourage youth participation, health, and physical fitness.

Hosts annual cultural and artistic festivals.

Throughout the year, Elektrostal celebrates its cultural diversity through festivals dedicated to music, dance, art, and theater.

Provides a picturesque landscape for photography enthusiasts.

The city’s scenic beauty, architectural landmarks, and natural surroundings make it a paradise for photographers.

Connects to Moscow via a direct train line.

The convenient train connection between Elektrostal and Moscow makes commuting between the two cities effortless.

A city with a bright future.

Elektrostal continues to grow and develop, aiming to become a model city in terms of infrastructure, sustainability, and quality of life for its residents.

In conclusion, Elektrostal is a fascinating city with a rich history and a vibrant present. From its origins as a center of steel production to its modern-day status as a hub for education and industry, Elektrostal has plenty to offer both residents and visitors. With its beautiful parks, cultural attractions, and proximity to Moscow, there is no shortage of things to see and do in this dynamic city. Whether you’re interested in exploring its historical landmarks, enjoying outdoor activities, or immersing yourself in the local culture, Elektrostal has something for everyone. So, next time you find yourself in the Moscow region, don’t miss the opportunity to discover the hidden gems of Elektrostal.

Q: What is the population of Elektrostal?

A: As of the latest data, the population of Elektrostal is approximately XXXX.

Q: How far is Elektrostal from Moscow?

A: Elektrostal is located approximately XX kilometers away from Moscow.

Q: Are there any famous landmarks in Elektrostal?

A: Yes, Elektrostal is home to several notable landmarks, including XXXX and XXXX.

Q: What industries are prominent in Elektrostal?

A: Elektrostal is known for its steel production industry and is also a center for engineering and manufacturing.

Q: Are there any universities or educational institutions in Elektrostal?

A: Yes, Elektrostal is home to XXXX University and several other educational institutions.

Q: What are some popular outdoor activities in Elektrostal?

A: Elektrostal offers several outdoor activities, such as hiking, cycling, and picnicking in its beautiful parks.

Q: Is Elektrostal well-connected in terms of transportation?

A: Yes, Elektrostal has good transportation links, including trains and buses, making it easily accessible from nearby cities.

Q: Are there any annual events or festivals in Elektrostal?

A: Yes, Elektrostal hosts various events and festivals throughout the year, including XXXX and XXXX.

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Lismore residents, business owners say people still suffering from 2022 floods as insurance inquiry continues

The flooding that wiped out Tania Hundy's supermarket in northern New South Wales in 2022 was just the start of her problems. 

The Woodburn business owner said the wrangling with her insurer since then had been the real kicker.

"I spend most of my life on a computer researching, following through, and finding the information that is required to prove them wrong," she said.

Ms Hundy's story was one of many heard at the flood insurance inquiry hearing in Lismore today, a city in the heart of a region decimated by flooding in early 2022.

The federal inquiry is investigating insurers' responses to claims after the widespread flooding in Queensland and parts of New South Wales two years ago.

An aerial pic of a bridge surrounded by water with cars parked

Ms Hundy said she hoped her submission to the inquiry would help her community.

"The insurance companies always seem to rule everybody, they seem to always come out in front," Ms Hundy said.

"But everybody here is still suffering. People are still not in their homes, they don't have a supermarket, there is just devastation everywhere you look."

Business owners, residents speak out

Representatives from five local councils, along with business owners and residents, have made submissions to the inquiry.

Kate Olivieri from East Lismore said her insurance contractors broke into her 137-year-old home and took valuable hardware, including doors.

She said she had no confidence in her insurer and it took her six months to convince them to let her appoint her own builder for repairs.

She said she felt like insurance was a scam.

"We pay for a service to protect our homes. Instead it destroyed our home worse than any flood could have done," she said.

A woman wearing a black dress sits on a seat outside a building, with a serious look on her face.

Lismore Mayor Steve Kreig told the inquiry he was surprised by insurance company procedures after floods.

He said he knew of cases in Lismore where numerous hydrologists from different insurance companies were operating in the same area, and coming up with different outcomes.

"Why do we have to have individual reports for every 700-metre-square housing block across the country?" Mr Kreig said.

"It's costly, it's inconsistent, and it's not fair.

"It's devastating and traumatising for people who are still stuck in a holding pattern."

Rundown weatherboard home with blue and white police tape through the overgrown front yard

Mr Kreig said nearly two-and-a-half years after the event, governments were not really able to show "any tangible progress".

"We as a council, as a state government, as a federal government, haven't been able to implement the promises that were made," he said.

"It's hard to walk down the street when people are coming up to you and crying on your shoulder telling these stories.

"It's not getting better. It's actually getting worse."

Search for solutions

Page MP Kevin Hogan called on council representatives to speak up if they had concrete solutions that could feed into recommendations from the inquiry.

A building and sign surrounded by floodwater

There was also a call for insurance companies to better educate their customers about home maintenance and other ways for them to take a more active role in protecting their own assets.

Matt Williamson from the Byron Bay Chamber of Commerce said "stripped-down" insurance policies needed to be offered to business owners immediately after a disaster to allow them to return to trading as soon as possible.

He said a lot of business owners were now self-insured for flood and had "100 per cent skin in the game", which meant they were coming up with innovative solutions to protect themselves.

Jane Laverty from Business New South Wales said business owners expected fair and reasonable support from their insurers, and empathy.

"That was clearly lacking," she said.

"We are talking about mum and dad businesses in regional communities, not multinationals."

Ms Laverty said she had grave concerns for Lismore, as the shire had now been written off by insurers.

"If we want Lismore to bounce back, we need a very specific focus on helping businesses to rebound and rebound quickly."

Committee chair Daniel Mulino said the inquiry was keen to know whether there had been an improvement from insurers in terms of empathy.

"It's very concerning that these issues are still going on," Mr Mulino said. 

The committee is due to deliver its report in September.

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19th Edition of Global Conference on Catalysis, Chemical Engineering & Technology

  • Victor Mukhin

Victor Mukhin, Speaker at Chemical Engineering Conferences

Victor M. Mukhin was born in 1946 in the town of Orsk, Russia. In 1970 he graduated the Technological Institute in Leningrad. Victor M. Mukhin was directed to work to the scientific-industrial organization "Neorganika" (Elektrostal, Moscow region) where he is working during 47 years, at present as the head of the laboratory of carbon sorbents.     Victor M. Mukhin defended a Ph. D. thesis and a doctoral thesis at the Mendeleev University of Chemical Technology of Russia (in 1979 and 1997 accordingly). Professor of Mendeleev University of Chemical Technology of Russia. Scientific interests: production, investigation and application of active carbons, technological and ecological carbon-adsorptive processes, environmental protection, production of ecologically clean food.   

Title : Active carbons as nanoporous materials for solving of environmental problems

Quick links.

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  1. The comeback of corporate travel

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    Inflation, energy prices, supply chain challenges, labor shortages, and regional developments add 18 months to industry recovery forecast, according to the 2022 GBTA Business Travel Index™ The global business travel industry continues its progress towards full recovery to 2019 pre-pandemic spending levels of USD $1.4 trillion, but recovery has hit…

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