Are the airlines prepared for a surge in bookings in 2021?

We’re expecting the events industry to bounce back once the vaccine has been distributed.  Q3 of 2021 is looking good for a return to face-to-face meetings, with an expectation that meetings, conferences and exhibitions will eventually return to pre-Coronavirus levels.

Airlines are expecting an increase in leisure travel from July 2021 and business travel to start again from September, but will permanent changes in behaviour create cost and capacity issues for people flying to events?  It’s thought that around 20% of airline business in the USA is generated from event attendees.  The remainder is company meetings, training, sales and client visits and this segment could decline by up to 36% because these trips may be replaced by online meetings.

The scheduled airlines will be more affected than budget carriers, as they target the business travellers.  The frequency of flights, prices and type of aircraft is dependent on them.  Some airlines will switch to smaller planes, change the timetable and make rate changes to make routes more profitable.  The financial collapse of an airline will drive passengers to other carriers and probably increase ticket charges on popular routes.

The only requirement from an airline is that a passenger wears a mask.  The test and quarantine requirement are required by the destination country, so when planning it’s worthwhile checking the travel corridors.

What are the airlines doing?

  • Air Canada

Air Canada was first airline in North America to introduce temperature checks in May 2020. From 15th December passengers will have to present a negative Covid-19 test at check-in and it must have been taken within 72 hours before departure. A second test is needed for the return flight if the departure time is 72 hours from the first test.

  • American Airlines

From 9th December, American Airlines will sell home coronavirus testing kits to passengers travelling U.S. locations with restrictions.  Test results should be available within 48 hours of receipt at the laboratory.

  • Delta Air Lines

From 15th December, Delta is launching covid-tested flights from Atlanta to Amsterdam.  Passengers must take a PCR test five days before travel, followed by a rapid antigen test before boarding. Both tests must be negative, then a second PCR test will be taken upon arrival at Amsterdam Airport Schiphol. If the final test is negative, passengers will not need to quarantine.   This system will then be used for flights to Rome from Atlanta, JFK New York and Newark Liberty New Jersey.

  • Emirates Airlines

Emirates was the first airline to offer free Covid-19 insurance. This includes coverage for medical treatment and health expenses and quarantine costs. The offer is valid for all travel until 31st December, at no charge to customers.

Anecdotally, we’ve heard that it’s business as usual in Dubai.  There’s 22% occupancy at the beachfront hotels and 17% occupancy in town, so there are some competitive rates available.

In Australia, the boss of Qantas, the country’s largest airline, said that once a virus vaccine becomes widely available, his carrier will likely require passengers use it before they can travel abroad or land in Australia.

  • Qantas, Korean Air and Air New Zealand

These airlines are considering changing their Terms and Conditions for international travellers to make it a requirement to have a vaccination before boarding a flight.  They would like a system to electronically verify that people have had a vaccine for their intended destination

However, this would be a governmental decision, depending how safe they feel it is to open their borders again.

Who is meeting and how are they doing it?

Corporates planning face to face meetings in 2021 should think about small events and local venues, according to the latest report from the PCMA. Event attendees are saying that they are not likely to attend a regional or global meeting or conference unless they’ve received a Covid-19 vaccine or there is very significant herd immunity. However, they are much more likely to attend small, local events that have clear health and safety guidelines.

What is the future for the large city-wide congress or association meeting?

Pre covid-19 there were already issues around flying and sustainability and with hybrid events does everyone need to be in the same place at the same time?

Where can we consider booking events when the conditions are right?

Travel bubbles are gradually opening, for example there are no quarantine restrictions between Australia and New Zealand, but there are from other countries. Singapore and Hong Kong are working on a similar arrangement.

Singapore held Travel Revive, 25 – 26 November 2020, at Sands Expo & Convention Centre to bring delegates and businesses together to exchange ideas, bridge knowledge gaps, and reimagine how the future of travel will look like. There were conference sessions, an exhibition and one-on-one buyer-seller appointments, with virtual conference sessions for global audience to connect with the regional travel businesses.

The German Convention Bureau recently held BOCOM, Experience Borderless Communication, to explore the characteristics, benefits and limitations of the different elements of virtual, hybrid and live audiences. The main stage was in Berlin, with an audience of 50 people as well as hubs with live sessions in Amsterdam, Vienna and Essen and a live stream for remote attendees. The event incorporated workshops, remote speakers and virtual meetings.

Unsurprisingly, the event found that networking was more important for those attending in person, but also:

  • Half day duration is better for remote participants, any longer and their attention span is poor
  • The event delivered increased reach, by offering different locations and virtual
  • Improved ecological sustainability (less travel, less paper etc)
  • More flexibility for participants and organizers
  • The event had a longer lasting effect
  • Smarter use of the content, during and after the event
  • The offer of different attendance pricing models
  • Time saving for attendees (particularly travel)The ability to trace participants behaviour

To attract events in the future a destination will need to market itself in a different way install confidence with event organisers and consider the following:

  • Introduction of safety protocols
  • Ensure the protocols are widely adopted and checked
  • Communicate the compliance through campaigns
  • Develop a culture of compliance in the destination (eg co-operation with mask wearing)

There will be more focus on the city as a destination, what it can provide or add to a meeting in terms of health and safety.

Earlier this year, The WHO has published a document, Key planning recommendations for mass gatherings in the context of COVID-19 for governments, health authorities and national or international organizers to contain risks of transmission associated with large events.

For more information and guidelines, it’s advisable check the WHO website, as well as the Foreign and Commonwealth travel advice.

The UK has established travel corridors and visiting these countries you do not need to self-isolate on your return, but you must have spent the last 14 days in one of these places, or in the UK. A passenger locator form needs to be completed before entering the UK. These are some of the current countries on the travel corridor and possible destinations for events.

  • Australia
  • The Azores
  • Bahrain
  • Barbados
  • Bermuda
  • Cambodia
  • The Canary Islands
  • Cayman Islands
  • The Channel Islands
  • Chile
  • Cuba
  • Finland
  • Gibraltar
  • Greek islands: Corfu, Crete, Kos, Rhodes, Zakynthos
  • Hong Kong
  • Iceland
  • Ireland
  • The Isle of Man
  • Israel and Jerusalem
  • Japan
  • Madeira
  • Malaysia
  • Maldives
  • New Zealand
  • Norway
  • Qatar
  • Singapore
  • South Korea
  • Sri Lanka
  • Thailand
  • United Arab Emirates
  • Vietnam

On 15 December a new scheme will be introduced, Test to Release, which allows you to pay for a private COVID-19 test. The earliest you can take the test is 5 days after you left a destination that’s not on the travel corridor list. If the result is negative, you can stop self-isolating.

For more information check https://www.gov.uk/guidance/coronavirus-covid-19-travel-corridors#countries-territories-and-regions-on-the-travel-corridor-list

Information correct on 7 December 2020