Summary List Placement
Jefferies, a financial services company, issued a report on September 10 using answers from a survey of over 5,500 consumers across 11 countries.
The survey asked consumers from the US, UK, China, Japan, France, Italy, Germany, Spain, Hong Kong, India, and Australia a variety of questions on subjects including how long will people be working from home and how responsible companies have acted.
Based on the consumer-attitude data, Jefferies highlighted three realities of COVID life that pose continuing threats to the commercial real estate sector.
1. Holiday bookings are expected to lag through 2021
Per Jefferies’ survey, half of the respondents in the US and Europe don’t “feel happy” about booking vacations in 2021.
But its not just recreational travel taking a hit. Jefferies predicts that business travel will diminish far beyond 2021.
“Health, safety and sustainability concerns make business travel, broadly speaking, a thing of the past,” the report reads. Instead, it said virtual conferences will continue to grow in popularity, while airlines and hotels see a dip.
In 2019, around 30% of US travel spending was for business travel, which translates to $334.2 billion in spending and about 2.5 million jobs, Business Insider previously reported. Executives across the country told Business Insider that the pandemic has forced them to reevaluate business travel, and they have found that in-person meetings are often unnecessary.
2. Interest in bars and restaurants is slow to come back, eating at home ‘indefinitely’ higher
The survey found that over 20% of respondents who went to bars and restaurants before the onset of the coronavirus pandemic have yet to return.
Granted, a variety of factors could contribute to this percentage, including areas with dining restrictions.
Nonetheless, the response led Jefferies to predict that eating at home has been increased “indefinitely.”
3. Offices probably won’t fill back up for a while, if ever
Per Jefferies’ survey, workers probably won’t come back to offices for a while, if ever. The survey found that only 30% of employed respondents plan on returning to the office before the end of 2020.
“There are fascinating insights regarding prior and future working-from home plans,” Jefferies wrote.
“On average, consumers expect to WFH an extra half-day per week, but given how many cannot choose to WFH at all, office-type workers seem likely to do a whole extra day a week at home. If that proves true, the consequences for city transport and office space, among others, could be severe.”
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Source:: Businessinsider – Life