According to the U.S. Travel Association (UTA), total travel spending that dropped 42% in 2020 is on the rebound. UTA forecasts a 24% increase in 2021 travel spending, followed by a 23% increase in 2022. This increase in travel translates to more air travel and a need for more workers to support businesses that make up the Aviation industry.
Business travel is also on the rise. According to Flight Resumption Statistics, out of the 50 largest corporate accounts at American Airlines Group Inc., 47 have already opened their offices or intend to do so this year. Industry conferences and high-profile annual events will be resuming this summer, and most companies are now allowing their employees to travel again for business. As a result, business revenue for most commercial airlines is improving.
This recovery in travel will positively impact all kinds of industries – from aviation to consulting to insurance and many more. For Independent Insurance agents that means a greater opportunity to grow their book of business by writing more Workers’ Compensation insurance.
There is a Need for More Workers at Growing Aviation Companies
According to Reuters, the demand for travel returned quicker than expected. Revenue at Aerospace Manufacturers and Suppliers, Pratt & Whitney, and Collins Aerospace have increased 19% and 6% respectively, as airlines have returned planes to the skies and recalled their crews.
In addition to Aerospace Manufacturers and Suppliers, there are a number of other aviation and related businesses that are increasing their workforce. The increase in travel has created a greater need for more baggage handlers, food service providers, shuttle and parking services, and more. In addition to these service providers, insurance agents that want to expand their book can focus on a wide range of Aviation-related companies such as:
- Fixed Based Operators (FBOs)
- Avionics / Mechanics
- Airport Operators
- Airline Services
- Unmanned flight vehicles (Drones)
- Maintenance, Repair, Overhaul (MROs)
- Charter Operations
- Flight Schools
Businesses with Corporate Jets
Additionally, businesses that own an aircraft or fleet of planes and have professional flight crews on their payroll introduce another opportunity.
For instance, if a consulting firm owns a private jet with the flight crew on its staff, there is a simple way to place non-aviation and aviation operations together on one Workers’ Compensation policy, simplifying the process for businesses that require both. PMC Insurance Group has a solution to deliver this unique offering through our BizJet program.
As more people return to air travel, there is a lot of opportunities for agents to grow their book of business. For more information on how to grow with Aviation Workers’ Compensation insurance, contact the experts at PMC Insurance Group today at 781-449-7744 or [email protected].