Antonio Nitu, General Manager of Aerotravel, one of the major Romanian travel agencies specializing in business travel, stated in an interview that the pandemic had a powerful impact, affecting entire industries globally: hospitality, commercial aviation, land and sea passenger transport, as well as all related support services. In this context, everything related to corporate travel in Romania is currently stalled. Company employees are no longer traveling, both due to restrictions imposed by authorities and because firms’ economic activity is restricted. Obviously, no MICE activity is taking place, whether corporate events or team buildings.
Nitu believes that business tourism has passed “point zero” and is showing signs of a slow recovery. Authorities across all continents are beginning to relax restrictions and implement clearer, more coherent safety regulations that allow businesses to reopen. Airlines are discussing flight restarts with concrete dates and routes. Hotels and airports are taking appropriate measures so that tourists feel safe.
The company began the year with substantial growth compared to the same period in 2019, and Nitu stated that 90% of sales were lost in one month, only for the following month to show that the cumulative value of credit notes (storno invoices) was higher than that of the invoiced services.
Unfortunately, this sector (travel & accommodation), the world’s largest by number of employees, was the first to feel the effects of the pandemic (when it was not yet called a crisis) and, according to expert estimates, will be the last to recover globally.
The unanimous conclusion is that an industry recovery will be visible in the third quarter, while for the fourth quarter we can hope for certain volumes, which will, however, remain below 50% of 2019 levels. The general opinion is that we will only discuss volumes comparable to 2019 in or beyond 2023, the Aerotravel representative stated.
I believe tourism will restart this year, beginning with tourism services that can be delivered domestically. Having a single national territory, governed by a single set of coherent rules valid for everyone (clients, agencies, suppliers), unforeseen situations can be managed much more efficiently, from both a medical and financial perspective. Then, in a later stage, travel between countries located at flight distances of one to two hours and less affected by the pandemic will resume. It is very likely that in Europe, the restoration of commercial air connections will be more complicated due to the individual decisions of each national government and divergent economic interests. However, the resumption of travel is largely dependent on identifying the core problem—namely, the medical resolution of the crisis, Antonio Nitu specified.
Frequently Asked Questions
When will business travel fully recover?According to Aerotravel estimates, travel volumes comparable to 2019 will only be reached in 2023 or beyond.
Which tourism segments will restart first?Domestic tourism will be the first to relaunch, followed by international travel over short distances of 1-2 hours of flight time.
What was the pandemic’s impact on specialized travel agencies?Agencies recorded sales drops of over 90%, with the value of credit notes often exceeding the value of newly invoiced services.