The coronavirus could cost the corporate travel industry $47 billion a month or up to 37% of the industry’s forecast spending this year, according to the Global Business Travel Association (GBTA).
The association warned: “The coronavirus has the potential to threaten the entire global business travel industry.”
A poll of more than 400 GBTA member companies this week suggested the coronavirus is having a “significant impact” on business meetings and events.
More: Coronavirus: What are the legal implications for package tour organisers?
Coronavirus: Cruise agents slam airlines on fees
Coronavirus: What it’s like to be in quarantine
Two-thirds (65%) of respondents reported cancelling meetings and almost one in five (18%) had cancelled “many”.
Two-thirds (66%) had also postponed meetings or events.
Of the companies which had cancelled or suspended business travel, 54% were unsure when travel might resume. About one-third (31%) expected travel to resume within three months, but 14% expected delays of up to six months.
A majority of supplier companies reported the coronavirus had hit revenues, with airlines and hospitality providers among the worst affected – 24% reporting a “significant” impact and 31% “moderate”.
Only 14% of respondents reported no impact on revenues.
The results highlighted the impact on travel to Asia with 95% of respondents reporting their companies had cancelled or suspended “most” or “all” business trips to China.
A majority (73%) had taken similar steps for travel to Hong Kong and 54%) to Taiwan, with 45% cancelling or suspending travel to other Asia Pacific countries.
Almost one in four (23%) reported cancelling or suspending some trips to European countries, although only 8% had cancelled or suspended “most” or “all” European trips.
Scott Solombrino, GBTA chief operating officer and executive director, said: “The coronavirus is having a significant – and potentially very costly – effect on our members, their companies and the overall business travel industry.
“If this turns into a global pandemic, the industry may well lose billions of dollars – an impact that will have negative ramifications for the entire global economy.”
However, he said: “Our industry’s first priority is the health and safety of the business traveller, and our members are being appropriately cautious and pro-active in their approach.”