Business Travel and IRS Mileage Rates for 2021
“Business travel … will take a long time to return to previous levels after the COVID-19 pandemic.” So said McKinsey last August. In December, Bill Gates said he expects 50 percent of business travel "will go away." Heads of major airlines do not expect a return to former levels for several years. By last April, business travel plunged. Business air travel in 2020 was down by 80 percent. McKinsey forecasts a slow recovery for business travel, and in phases. The first phase is likely to see regional travel involving personal vehicles or rental cars for face-to-face sales or client meetings and essential business operations, primarily in manufacturing, pharmaceuticals and construction. In the second phase, domestic air travel improves. Travel purposes begin to include internal meetings, training and other small group gatherings. International travel will not rebound until the third phase, tempered by government regulations and restrictions. This will coincide with a return to industry trade shows, conferences, exhibitions and large-scale events. These phases are not tied to dates--or to 2021--in McKinsey's discussion. McKinsey says that travel managers and directors tell them they closely monitor local indicators of public health and government regulations, plus employees' willingness to travel and vendors' health and safety policies. Several...