Some great news coming from the Global Business Travel Association (GBTA) this week: Business travel is on track to hit a record of $1.48 trillion in 2024, finally surpassing the previous record of $1.43 trillion in 2019. These numbers are courtesy of the newest GBTA Business Travel Index Report, known as the BTI, released at the GBTA Convention this week in Atlanta.
This is the first time that spending is above pre-pandemic levels, and GBTA predicts that growth will stabilize in the coming years to an annual compound growth rate of 6.95% from 2025 to 2028. The report cites favorable conditions in 2022 and 2023 as well as higher confidence of the C suite in the value of business travel.
GBTA CEO Suzanne Neufang
“We are witnessing the expected rebound in the sector, reflecting the resilience and adaptability of businesses and the value of business travel worldwide,” says GBTA CEO Suzanne Neufang. “With projected spending expected to continue to increase through 2028, the future of business travel looks promising. However, we must remain vigilant and adaptive to potential headwinds in this period of stabilization, as factors such as changing economic conditions, technological advancements, and sustainability developments will also shape the sector ahead.”
Some important highlights of the report:
- Recovery in business travel continues to vary by region. Asia Pacific emerged as the fastest-growing region in 2023 (36%), followed by Western Europe (33%) and North America (25%). The recovery bounce back was led in 2023 by the US, Middle East and Africa, and Latin America, all achieving 100% or more of 2019 spending numbers. For 2024, China and the US are forecast to continue to lead as the top two markets, respectively, for overall business travel spending.
- The financial and insurance activities sector is projected to experience the most significant expansion (72%) in business travel spending through 2028, while retail trade (41%) and agriculture, forestry, and fishing (32%) sectors are expected to lag.
- Potential upside impacts for the business travel sector include ongoing economic stability, technological advancements, particularly in artificial intelligence (AI), and stronger-than-expected economic growth in key markets like the US and India.
- Business travelers globally estimate their own spending, on average, amounts to $834 per person based on their last business trip with ground transportation capturing $103 of that total.
- When asked about their greatest priorities while traveling for work, maximizing comfort (43%) and minimizing cost (41%) are on the same level globally, with 16% saying reducing carbon emissions. Additionally, European travelers (22%) are more likely to prioritize reducing their carbon footprint compared to other regions.
- Nearly two-thirds (61%) of global business travelers across all regions use a corporate credit card to book, with North American travelers ranking the highest.
The entire report can be found here.
Visit gbta.org for more information.
[07.23.24]