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Kacey Siskind recently took her first business trip to the US since the pandemic began.

The vice president of business development for Honk Mobile, a parking app, attended an industry conference in Texas.

“Our team was fully vaccinated and we felt we could probably go our way and see how it went … we just wanted to take a risk and really be out in the world again,” said Siskind.

But in Dallas, little would you know that there was ever a global pandemic. Panel discussions and networking sessions at the conference were held indoors with no masks in sight – just a lot of people wanting to reconnect.

Siskind said she found the surroundings unsettling at first, but soon began to appreciate the experience.

“There’s really nothing like being in person with someone,” said Siskind. “There is nothing better than seeing them physically and talking to them.”

The Global Business Travel Association, an industry group, said business travel represented about 2.5 to 3 percent of Canada’s pre-pandemic GDP, about $ 40 billion annually. (Rick Bowmer / The Associated Press)

Only essential business trips continued during the pandemic; For example, travel related to health problems or critical infrastructure. Business trips to maintain or build relationships, to sell, or to attend conferences have been discontinued.

In an online survey of 640 industry experts, a June survey by the Global Business Travel Association, a US industry group, found that 91 percent of companies said they had canceled or suspended most or all international business travel – a huge success for the industry .

Slow return for business travel in Canada

In Canada, online virtual gatherings are expected to be the norm at least until the end of the year, event planners said.

“Our friends in the States are traveling a little faster than we are,” said Anh Nguyen, event planner in Calgary. “In Canada we are seeing a slightly more conservative approach.”

Canadian Kacey Siskind, vice president of business development at Honk Mobile, recently traveled to Texas to attend her first in-person industry conference since the pandemic began. (Submitted by Kacey Siskind)

Nguyen’s company Spark Event Management organized a number of virtual events over the past year. She believes that many organizations – here and in the US – will not be willing to forego all the benefits that come with being online.

“There’s no such thing as sold out, right? So if you’re a 300-person event, you can now reach 5,000 to 6,000 people if you wanted to.”

Nguyen adds that with avatars, network and breakout room software, the industry is almost able to recreate much of a real-life event experience online – although it will never be quite the same.

“Technology has grown and there is currently a lot of money and investment going into event technology,” said Nguyen.

Calgary-based event manager Anh Nguyen believes in-person events will continue to be virtual for the foreseeable future as many companies seek to reach a wider audience. (Dave Rae / CBC)

Virtual gatherings may be great in some ways, but industry insiders note that they do next to nothing for the local economy. Business travelers often spend a lot of money. They’re often on expense accounts that benefit hotels, restaurants, taxis, airlines, and more.

“Business travel is contributing over $ 40 billion to our pre-pandemic Canadian economy,” said Nancy Tudorach, who works with the Global Business Travel Association. “That’s around 2.5 to 3 percent of our typical pre-pandemic GDP.”

Airlines are injured

Vik Krishnan, a consultant at McKinsey & Company, said airlines in particular rely on expensive business class tickets.

“Business travelers tend to book late, travel more often and also buy some of the more expensive fares,” he said. “Business travel accounts for 50 to 75 percent of the bottom line for some airlines.”

A recent report by McKinsey found that it took airlines six years to recover from the effects of the 9/11 attacks and that the industry was still not fully recovered from the 2008 global financial crisis at the time of the pandemic had recovered.

The COVID-19 pandemic has been bigger and deeper than any of these previous crises, Krisnan said. But if business travel remains restricted, airlines are unlikely to make up the difference by charging regular consumers more.

TK Events, based in Ontario, is one of several event management companies that virtually replicates some aspects of real-world conferences. (TK events)

“This is an industry that has seen a lot of competition, pretty relentless price and cost pressures, and so it’s no stranger to dealing with an environment where you don’t have a lot of leeway and flexibility in pricing.”

The advent of new low-cost airlines in Canada like Flair and Canada Jetlines could make it difficult for WestJet or Air Canada to charge more.

Business trips can stay depressed

Many of the companies that rely heavily on business travelers are expected to continue to experience difficulties. McKinsey’s report on the aviation industry predicts that pre-pandemic travel levels will not hit until 2024 and even then will only be 80 percent.

Others say the pandemic could have forever changed the way people approach business travel.

Kacey Siskind suspects that all business trips are now valued differently.

“Is it efficient for us to go to a conference? Yes, when we see hundreds of people it makes sense for us to be there, ”she said. “Is it wise of me to go to New York for the night to have a meeting?