GLOBAL stock markets may have been shaken by the Brexit vote last Thursday, but the state of business travel and MICE appears to have escaped unscathed despite worries of an impending financial crisis with the UK’s economic instability.
Leading global travel management companies told TTGmice e-Weekly that UK clients did not approach business travel and event plans with caution in the lead up to the historical Brexit vote on June 23, nor did they cancel or postpone any trips already made.
However, most opined that this is still early days.
A spokesperson with Carlson Wagonlit Travel said: “The vote has no immediate impact on CWT’s business in the UK or the EU. We will continue to monitor the situation as it evolves.”
Greg O’Neil, president – Asia-Pacific for BCD Travel, said: “Globally, we are preparing for some volatility – but at this time we are not adjusting annual projections for volume.”
He added: “We expect to see a conservative approach to internal travel and small meetings. Most of our clients are multinational, so their bookings are not isolated to the UK. Generally, our UK-based clients have been reluctant to share plans to curtail travel far in advance, so we may have to wait a few weeks to learn if that could happen.”
Also bracing for impact later is Linda Low, manager for strategic partnership & product marketing at Pacific World Singapore.
“We expect to see unscheduled business travel in the near term being held back, pending more clarity on the UK currency and economic prospect,” Low said.
Arokia Das, senior manager at Luxury Tours Malaysia, too, thinks a slowdown in corporate bookings is on the horizon, as companies will be cautious about spending and may wait until the economy and political situation stabilise.
And should demand for corporate meetings be impacted, O’Neil said small meetings would be first to be hit.
“Companies tend to drop small internal meetings first because those are planned closer to the time of the event and often can be (replaced) using virtual collaboration technology. Larger meetings typically include costly cancellation policies, so we expect them to proceed,” O’Neil explained.
However, he was quick to point out that as “summer is historically a bit slow for business travel”, any decline in corporate traffic now would likely be “independent of the Brexit vote”. What would happen is the usual summer slowdown occuring “a few weeks early”.
“By September, businesses often see a need to travel more to meet goals for growth, so we normally expect strong volume in Q4,” he added.
Offering a more optimistic view of the situation is HRS, whose spokesperson said that corporate travel is essential and will carry on, although UK clients will now, more than ever, seek cost-savings.
The spokesperson also suggested that the weakened pound might lead to increased inbound demand for the UK, as the cost of business trips and meetings will be lower.
