In a remarkable turnaround, the global business travel industry is not just rebounding but is poised to surpass pre-pandemic spending levels. According to the latest GBTA Business Travel Index™ Outlook report, business travel spending is anticipated to exceed $1.4 trillion by 2024, eclipsing its pre-pandemic figures, and is projected to further climb to almost $1.8 trillion by 2027. In 2022, global business travel spending witnessed a substantial surge, marking a 47% increase to reach $1.03 trillion, with a robust 32% growth anticipated in 2023.
Unveiled at the 2023 GBTA Convention in Dallas, the 2023 GBTA Business Travel Index™ Outlook – Annual Global Report and Forecast provides a comprehensive overview of business travel spending and growth across 72 countries and 44 industries, presenting an optimistic outlook for global business travel.
Key highlights from the report include:
- Recovery Timeline: Global business travel spending is predicted to recover to pre-pandemic levels by the end of 2024, a faster rebound than previously estimated in the 2022 BTI Outlook. The remarkable stability in the global economy, contrary to projections of a slowdown, has significantly contributed to this accelerated recovery.
- Covid-19 Impact: Over the last 18 months, progress in combating the Covid-19 pandemic has been the primary driving force influencing the pace of recovery in global business travel.
- Regional Disparities: Recovery in business travel spending varies by region. While Western Europe experienced the fastest growth in 2022, North America and Latin America also saw a substantial acceleration. Asia Pacific, particularly China, faced delays in reopening its economy but is expected to recover by the end of 2023.
- Industry Resilience: Business travel spending recovery differs by industry, with construction, education, and professional, scientific, and technical activities demonstrating the most resilience.
- Challenges Ahead: Despite the promising rebound, challenges such as the war in Ukraine, inflation, global financial conditions, and deterioration in the manufacturing sector could impact the industry’s longer-term forecast.
- Changing Dynamics: Sustainability initiatives, increased remote work, and the rise of blended travel (combining business and leisure) are identified as potential influencers in the future of business travel.
- Business Traveler Insights: A survey of 4,700 business travelers across 22 countries and four regions found that 82% considered business travel to be very or moderately worthwhile in achieving their business objectives.
- Spending Breakdown: On average, business travelers estimate spending $1,018 per person per trip, with lodging accounting for $391, food and beverage for $189, airfare for $182, ground transportation for $136, and miscellaneous expenses for $120.
- Bleisure Travel: Business travelers are increasingly blending business and personal travel, with 42% adding extra leisure days to their business trips.
- Payment Methods: 66% of business travelers report being provided a corporate credit card, and 64% of those have uploaded their card to a mobile wallet.
The business travel landscape is evolving, with emerging trends indicating a shift towards blended travel experiences, increased reliance on mobile wallets, and a continued emphasis on the value of business travel in achieving professional objectives. The industry’s adaptability and resilience are evident in this robust recovery, and the future looks promising for global business travel.
