Yahoo Autos 10 US cities, including New York, DC, and San Francisco, lost almost all their business travel revenue this year
Fallout from the coronavirus pandemic is wiping out a decade's worth of revenue and job growth, a report says.
Corporate, government, and group travel is the industry's largest source of revenue.
Travel revenue has been hammered by remote work and a new surge in COVID-19 cases.
US cities across the country will lose millions, and in some cases billions, of dollars in revenue in 2021 as far fewer people travel for business than before the outbreak of the coronavirus pandemic, new data finds.
The US travel market, especially the hospitality sector, is suffering due to remote work and the coronavirus, according to research published by data analytics firm, Kalibri Labs, and the American Hotel & Lodging Association. The research was first reported on by Bloomberg.
Business travel revenue, which includes corporate, group, government, and other commercial categories, is down dramatically in cities across the US for 2021 compared to 2019, before the pandemic started.
Ten major cities have taken the biggest hit. The New York market, the highest earner in business travel, is projected to make about $530 million in revenue in 2021, down 88% from $4.5 billion in 2019. The Washington DC and Orlando markets, which both made around $2.7 billion in 2019, also reported an 80% plus drop versus 2019 numbers. San Francisco made the steepest drop, with revenue down 93% since 2019. Las Vegas, which hosts scores of large corporate events, is projected to lose 71.2% of its 2019 revenue this year.
The pandemic is "wiping out a decade's worth of revenue and job growth" in the hospitality sector, the report concludes.
Revenue per available room for most generic business travel hotels are down 45% from 2019, Insider previously calculated. Business and group travel are not expected to return to pre-pandemic levels until 2023 at the earliest.
