Business travel is
poised to exceed pre-pandemic levels this year, with spending projected to
reach a record-breaking $1.5 trillion, according to a new report
from the World
Travel & Tourism Council (WTTC). Its pace of recovery is proceeding
faster than previously predicted, as corporate travel, which lagged behind the post-pandemic
rebound in leisure travel, now shows surprising growth.?
During the
pandemic, the prevalence of remote work and virtual meetings meant that it
mostly replaced face-to-face business interactions, leading to an even larger
decline in corporate travel than in leisure travel.
And, while leisure
travel quite quickly rebounded from its pandemic-era slump, business travel
lagged behind. While leisure travel was only 2.9 percent behind its 2019 peak
last year, business travel remained at 5.4 percent below pre-pandemic levels.?
However, as business
leaders have recently regained an emphasis on in-person engagements, corporate
travel is now seeing a swift turnaround. It is set to exceed actually 2019
levels by 6.2 percent in 2024, reaching a new all-time high of US$1.5 trillion
in spending.
U.S. and China
Lead Business Travel Recovery
The WTTC¡¯s
"2024 Economic Impact Trends
Report" reveals that the United States
and China, the two largest markets for business travel, are leading the charge.
In the U.S.¡ªwhich constituted
30 percent of global business travel in 2019¡ªsector spending is expected to
reach $472 billion this year, representing an astonishing 13.4 percent increase
compared to the country¡¯s pre-pandemic figures.?
Similarly, China¡ªthe
world¡¯s second-largest market for business travel¡ªis forecast to see a 13.1
percent increase in business travel spending compared with 2019, bringing the
total to nearly $211 billion.
Germany, the
third-largest market for corporate travel, is also expected to surpass its 2019
levels with projected spending of $87.5 billion, marking a nearly one percent
rise over its 2019 peak.?
Other major
markets, such as the United Kingdom and France, are also anticipated to reach
record highs, contributing a record-breaking $84.1 billion and $42.1 billion to
their respective economies.
Face-to-Face
Meetings Prove Indispensable
This week, at the
global tourism body¡¯s ?24th Global Summit
in Perth, Western Australia, WTTC President and CEO Julia Simpson said, ¡°After
a challenging few years, business travel is not only back on track, but it is
recovering much faster than expected, highlighting the importance of
international travel for businesses around the world.?
¡°Many business
powerhouses such as the U.S., China and Germany are expected to reach record
numbers this year. While virtual meetings played a crucial role during the
pandemic, keeping people and businesses connected, today¡¯s report shows that
business is better face to face.¡±
Paul Abbott, CEO
of American Express Global Business Travel, a leading software and services
company for business travel and expense, remarked, "Companies around the
world value travel and in-person connections more than ever, since people
movement was restricted during the pandemic.
¡°We always said
travel was a force for good, driving economic and societal progress. But when
travel stopped, GDP plummeted, unemployment soared, mental health issues
escalated, and the world became a less tolerant place. The benefits of travel
are now no longer in doubt. Companies around the world¡ªmany for the first time¡ªare
investing in managed business travel to grow their businesses and create
winning cultures.¡± ??
Other Factors
Driving the Comeback
The report points
to several factors are evidently contributing to this resurgence in business
travel. Since worldwide economies have managed to recover since the pandemic,
with the travel and tourism sector¡¯s GDP contribution reaching record levels, companies
now have more resources to assign toward corporate travel.?
Additionally, the
growing trend of "blended travel", where business trips are combined
with personal vacations, has helped to reinvigorate the industry. The meetings,
incentives, conferences, and exhibitions (MICE) segment has also made a
significant comeback, as in-person events have finally resumed following an
extended period of cancellations and postponements.
With business
travel returning to the forefront, companies across the globe are once again
recognizing its indispensable role in driving economic growth and fostering
meaningful connections.
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