Airlines see “oasis” in entertainment, energy sectors during pandemic

Author: Agencies

Airlines eager to fill premium seats left empty by the coronavirus crisis are making a beeline for the entertainment and energy industries, which still must get its workers to far-off places. Most companies have slashed spending on corporate travel, leaving airlines without a crucial source of revenue. Business traffic remains at least 85% down on pre-crisis levels.

While travel groups expect new COVID-19 vaccines to help revive future business traffic, sectors like sporting events, streaming and content creation are a rare bright spot for airlines in the hard-hit travel sector. “It is at least somewhat of an oasis,” said Glenn Hollister, vice president of sales strategy and effectiveness at United Airlines Holdings Inc. “Certainly the entertainment industry is not back traveling anywhere close to normal. But there are certain aspects of the entertainment industry that just cannot happen without travel,” he said, referencing content production. The US carrier introduced new sector incentives this fall, including access to a 24/7 support desk, for production crews, actors, entertainment executives and other passengers who are still traveling. Activity in some production hubs, like Vancouver, Canada is bouncing back to pre-pandemic levels.

CUSTOMIZED TRIPS

Brad Krevoy, chief executive of Motion Picture Corporation of America, said by email the US company’s travel has been focused on Canada and Scotland due to their COVID protocols. “Canada has a uniform two week quarantine, so actors feel safe and COVID infection is minimal with productions,” said Krevoy. In the country’s Pacific coast of Vancouver, where Netflix Inc recently announced the expansion of a production hub, activity has roared back since spring COVID-19 shut-downs, jumping to 60 entertainment projects from 41 in March, according to data from the city´s economic commission. Patricia McConnell, the California-based director, media and entertainment at BCD Travel told an October United Airlines webinar on the entertainment sector that she has seen a rise in trips for sports production and breaking news.

Although some business travelers still book economy seats, corporate travel is crucial for carriers because of demand from frequent flyers and appetite for higher-margin premium fares.

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