Business travel is expected to be extensively monitored as the COVID-19 pandemic presents new challenges.
Companies operating in a range of sub-segments within the global tourism sector have been dramatically changing long-standing policies around cancellation and change fees. This is to provide travelers with the new must-have when booking a trip in the ‘new normal’ – flexibility.
On the 27th August, Rolls-Royce announced record H1 losses of £5.4 billion. These losses are mainly concentrated on its Civil Aerospace business, Power Systems business, and ITP Aero subsidiary, whilst revenues from its Defence business have remained steady.
Harry Boneham, Associate Analyst at GlobalData, comments, “the announcement that Boeing will cease production of the 747 in 2022 follows news that numerous airlines will be bringing forward the retirement of their 747 fleets due to the effect of the COVID-19 pandemic.
According to GlobalData’s Week 3 COVID-19 Recovery Survey (July 8-12), 32% of American respondents stated that they will continue (or start) to reduce domestic and international travel.
Travel companies must think long and hard about the long term repercussions of not reimbursing customers or delaying the process. It risks alienating loyal customers, which would create enormous financial repercussions further down the line.
A recent poll conducted by GlobalData gauging sentiment in the aerospace industry found that the majority of respondents believed that airlines would avoid investment in new designs, and would instead prioritise the extension of lifespans for existing designs.
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