Business travel is set to surpass pre-pandemic levels this year, faster than previously predicted, according to a new report from the World Travel & Tourism Council (WTTC). That spending is expected to reach a record $1.5 trillion, up by 6.2% over 2019. Last year, leisure travel was just 2.9% behind the 2019 peak, while business travel continued to struggle, remaining 5.4% behind.
According to WTTC’s 2024 Economic Impact Trends Report, business travel spending in the US, which accounted for 30% of the global total in 2019, is expected to reach $472 billion this year ¾ 13.4% above the country’s 2019 record.
In China, the world’s second largest market for business travel, spending is forecast to grow 13.1% above 2019 to reach almost $211 billion.
Business travel spend in Germany, the third largest market, is set to reach $87.5 billion, just under 1% above the 2019 peak, while business travel in the UK and France is expected to inject a record-breaking $84.1 billion and $42.1 billion into their respective economies.
At the global tourism body’s 24th Global Summit in Perth, Western Australia, Julia Simpson, CEO, 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.”
While virtual meetings played a crucial role during the pandemic, keeping people and businesses connected, said Simpson, “today’s report shows that business is better face to face.”
Paul Abbott, CEO of American Express Global Business, said at the conference that the industry
always said travel was a force for good, driving economic and societal progress. But when travel stopped, he said, 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,” said Abbott. “Companies around the world ¾ many for the first time ¾ are investing in managed business travel to grow their businesses and create winning cultures.”
According to the report, other factors have also contributed to the resurgence of business travel.
As economies around the world have rebounded since the pandemic, with travel and tourism’s global GDP contribution reaching record levels, businesses have been able to reallocate more funds toward corporate travel once again. The growth of blended travel, whereby travelers combine business trips with personal holidays, has also enhanced the appeal of corporate travel, according to the report.
The meetings, incentives, conferences and exhibitions (MICE) industry has also made a strong comeback, said the report, resuming in-person events after a long period of cancellations and postponements.
Image: Shuttersrtock
