Now that summer vacations are over, kids are back in school and Labor Day seems like a distant memory, it’s time for many in the Going Global community to get back out there. And that means flights, hotels, car rentals, dinners with guests and colleagues and so much more. But this time, unlike in some past years, you certainly won’t be alone. In fact, the Business Class section of your plane will probably be full.
Corporate travel is on an upward trajectory, reflecting broader economic recovery and the stabilization of post-pandemic work environments. According to Deloitte’s latest survey, the state of business travel is robust, with significant growth expected in 2024 and beyond.
Economic Stability and Travel Growth
Deloitte’s survey indicates that a majority of travel managers anticipate an increase in their companies’ travel spending in 2024 (73%) and 2025 (58%). This growth is projected to be around 14% to 15% annually. The resurgence is fueled by economic stability and the ongoing return to office environments. The balance of remote, in-office, and hybrid work is stabilizing, prompting companies to reinvest in business travel as a critical component of their operations.
Changing Dynamics of Business Travel
Despite a decrease in the number of workers traveling for sales and project work, those who do travel are doing so more frequently. One in five frequent travelers are on the road more than once a month for these purposes. Many corporate travelers not only embrace their business trips but also find ways to blend leisure with work, with two-thirds extending business trips for personal enjoyment in 2023.
Booking Preferences and Trends
A significant portion of business travelers are moving away from traditional corporate booking tools. About 30% never use corporate booking channels, preferring unmanaged channels such as online travel agencies (OTAs) and direct bookings with airlines and hotels. This shift is driven by the search for better deals, ease of changing travel plans, superior digital experiences, and loyalty points.
Sustainability in Corporate Travel
Sustainability is becoming a crucial consideration for corporate travel. Travel managers report progress in adopting sustainable practices, particularly with a shift towards supporting sustainable aviation fuel and lodging certifications. These efforts are gaining traction as companies strive to balance travel needs with environmental responsibilities.
Role of Conferences and Trade Shows
Conferences, trade shows, and exhibitions are significant contributors to the growth in business travel. Over 60% of business travelers expect to attend at least one such event in 2024. These events are crucial for networking, knowledge exchange, and business development, driving a substantial portion of corporate travel.
Projected Growth and Economic Indicators
By the end of 2024, U.S.-based corporate travel spending is expected to match or surpass 2019 levels. Deloitte’s survey suggests that corporate travel spend could grow by 8% to 12% in 2024, outpacing the projected 2.1% GDP gains. This indicates a strong recovery trajectory for the industry. Frequency of travel per individual is also increasing, with a significant rise in the number of travelers expecting to take more trips in 2024 compared to previous years.
Looking Ahead
While the growth is promising, travel managers expect a slight slowdown in 2025. Nonetheless, the growth rate is still expected to be two to three times that of GDP growth, reflecting the essential role of corporate travel in global business operations.
Deloitte’s 2024 survey highlights the resilience and adaptability of the corporate travel sector. With economic stability, evolving work dynamics, and a focus on sustainability, business travel is set to continue its upward trajectory. Companies are recognizing the value of face-to-face interactions and the opportunities that travel presents, paving the way for a vibrant and dynamic future in corporate travel.
