Business travel spending is expected to surge to $1.48 trillion by 2024, driven by robust growth across North America, Europe, Asia Pacific, and Latin America. This increase reflects a strong recovery and expansion in the global business travel sector.
According to travelandtourworld.com, The business travel sector has demonstrated remarkable resilience as it transitions from the challenges of the global pandemic into a period of post-pandemic stabilization.
Projections for 2024 indicate that global business travel spending will reach an impressive $1.48 trillion USD by the end of the year, surpassing the previous record of $1.43 trillion set in 2019. Furthermore, forecasts suggest that by 2028, spending in this sector will exceed $2.0 trillion, underscoring a robust and promising future.
This resurgence is being fueled by a combination of global economic stability and a pent-up demand for travel. These factors have provided the necessary confidence for CEOs and CFOs to reinstate business travel for their teams. Notably, numerous leading business travel markets worldwide have either returned to or are approaching pre-pandemic activity levels, further reinforcing the recovery momentum and boosting overall spending. Nonetheless, the outlook for economic and business travel growth presents a mix of potential opportunities and risks.
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These insights are drawn from the latest 2024 GBTA Business Travel Index Outlook – Annual Global Report and Forecast (GBTA BTI™), published by the Global Business Travel Association (GBTA) with support from Visa. The findings were unveiled at the GBTA Convention 2024 in Atlanta, attended by over 5,300 participants. This 16th edition of the GBTA BTI™ offers a comprehensive forecast of business travel spending and growth, covering 72 countries and 44 industries. It also incorporates survey data and analysis from 4,100 business travelers across five global regions, providing valuable insights into employee travel preferences, behaviors, and spending patterns.
“We are witnessing the expected rebound in the sector, reflecting the resilience and adaptability of businesses and the value of business travel worldwide,” said Suzanne Neufang, CEO of GBTA. “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.”
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Global business travel spending is expected to rise by 11.1% in 2024, building on the significant growth seen in 2022 and 2023, which experienced year-over-year increases of 30% to 47%. Moving forward, growth is projected to moderate gradually, with an annual compound growth rate of 6.95% from 2025 to 2028.
In 2023, the business travel industry managed to recover approximately $675 billion of the $770 billion lost in 2020, according to the GBTA BTI™ analysis, achieving 93% of the pre-pandemic peak of $1.43 trillion by the end of the year. The sector witnessed a substantial resurgence, with spending increasing by 30% compared to 2022, reaching $1.3 trillion.
Highlights from the 2024 GBTA BTI™ Outlook
Global Business Travel Spending Recovery:
Business travel spending is forecasted to rebound to its pre-pandemic level of $1.48 trillion in 2024, driven by more favorable economic conditions than initially expected in 2022 and 2023.
However, it is crucial to note that, when adjusted for inflation, these spending levels are expected to fall short of pre-pandemic highs, indicating that the volume of business travel may remain below pre-pandemic levels in the near term.
2023 Business Travel Expenditures Breakdown:
The total estimated expenditure for business travel in 2023 amounted to $1.34 trillion, allocated as follows:
Lodging: $501 billion
Air Travel: $282 billion
Food and Beverage: $245 billion
Ground Transportation: $165 billion
Other Travel Expenses: $142 billion
Regional Recovery Variations:
The Asia Pacific region recorded the fastest growth in business travel spending in 2023, with a 36% increase.
Western Europe followed with a 33% increase, and North America saw a 25% rise.
Significant recovery was noted in the U.S., the Middle East, Africa, and Latin America, all achieving or surpassing their 2019 spending levels. For 2024, China and the U.S. are anticipated to continue as the leading markets for overall business travel spending.
Industry-Specific Spending Growth:
The financial and insurance activities sector is expected to see the most substantial growth in business travel spending, projected at 72% through 2028.
Conversely, the retail trade sector is expected to grow by 41%, and the agriculture, forestry, and fishing sector by 32%, indicating slower growth in these industries.
Factors Influencing Long-Term Forecast:
Several factors could impact the longer-term forecast for business travel, including persistent inflation, a slower recovery in China, geopolitical tensions, workforce challenges within the industry, and natural disasters. The growing emphasis on corporate sustainability is also likely to influence the sector, underscoring the importance of coordinated efforts across the industry to ensure a sustainable future for business travel.
Potential Upside Impacts:
Continued economic stability, advancements in technology (especially in artificial intelligence), and stronger-than-expected economic growth in key markets such as the U.S. and India could positively impact the business travel sector.
The Global Business Travel Association (GBTA) conducted a comprehensive survey involving 4,100 business travelers from 28 countries across four key regions: North America, Europe, Asia Pacific, and Latin America. The survey unveiled a notable increase in overall business travel, although international travel still lags behind pre-pandemic levels. According to the survey, 64% of business travelers reported an increase in spending on business travel compared to 2023. However, more than a third (37%) indicated that they face more restrictive travel policies now than before COVID-19.
On average, business travelers estimate their spending to be $834 per person on their last business trip. This breakdown includes $312 for lodging, $153 for food and beverages, $176 for air travel, $103 for ground transportation, and $89 for miscellaneous expenses.
The survey highlighted that a significant majority (81%) of business travelers found their most recent trips to be very (46%) or moderately (35%) successful in meeting their business objectives. The primary reasons for travel among global business travelers were attending seminars/training sessions, followed by conventions and conferences.
Comparing current travel patterns to 2019, 76% of business travelers stated that they travel the same amount or more for business purposes. Those who reported traveling more (28%) outnumbered those who travel less (20%). Despite the overall increase in business travel, both international and group travel remain below 2019 levels. About 40% of business trips lasted three to five nights, while 32% were two-night stays. Additionally, 58% of respondents mentioned that they now extend their work trips for leisure or vacation as often (41%) or more frequently (17%) than before.
When it comes to travel priorities, 43% of business travelers prioritize maximizing comfort, while 41% focus on minimizing costs. Reducing carbon emissions is a priority for 16% of travelers globally, with European travelers placing a higher emphasis (22%) on reducing their carbon footprint compared to other regions.
Regarding payment methods, nearly two-thirds (61%) of business travelers worldwide are issued corporate credit cards for their travel expenses. This practice is particularly prevalent among North American business travelers, with nearly a third of them charging 100% of their trip expenses to their corporate cards. Moreover, 59% of respondents have uploaded their corporate credit cards to a mobile wallet, and approximately 87% use their mobile wallets for at least 10% of their business travel transactions.
These findings offer a comprehensive look into the current state of business travel, highlighting increased spending, evolving travel policies, and changing travel behaviors and preferences among business travelers globally.
These insights from the 2024 GBTA Business Travel Index Outlook provide a comprehensive view of the current state and future projections for the global business travel industry, highlighting both the opportunities and challenges that lie ahead.
“As business travel spending continues to expand, digital payments will continue to revolutionize the travel experience, making it effortless and secure to book and manage expenses,” said Veronica Fernandez, head of Commercial Solutions for Visa. “Visa is at the forefront in enabling smooth and efficient transactions that keep business travelers moving seamlessly across borders and through cities, whether they’re negotiating deals or exploring new markets.”
About GBTA
The Global Business Travel Association (GBTA) is the world’s premier business travel and meetings trade organization, headquartered in the Washington, D.C. area, serving stakeholders across six continents. Representing and advocating for the $1.357 trillion global business travel and meetings industry, GBTA and its 8,000+ members deliver world-class education, events, research, advocacy, and media to a network of over 28,000 travel professionals and 125,000 active contacts.
GBTA mission is to equip members with the knowledge and resources necessary to navigate the rapidly changing business travel landscape, resulting in improved managed travel programs, top-line business growth, and exemplary careers. We achieve this through:
Events: Organizing premier industry events for networking and learning.
Professional Development: Offering programs and certifications to advance careers.
Research & Industry Tools: Providing insights and tools to stay ahead in the industry.
GBTA News: Delivering the latest industry news and updates.
Leadership and Team: Leading with a dedicated team of industry experts.
Work at GBTA: Creating a dynamic and rewarding work environment.
