Business Travel Bounces Back: Spending Forecast to Hit Record
Skift Take
Key Points
- Global business travel spending projected to hit $1.48 trillion by end of 2024.
- Recovery varies by sector and region, with tech companies slower to return and Asia Pacific showing the fastest growth.
- GBTA emphasizes sustainability and passenger facilitation as key policy priorities.
Summary
Business travel spending is expected to reach a record $1.48 trillion by the end of 2024, according to the Global Business Travel Association (GBTA). While travel volumes haven't returned to pre-pandemic levels, spending has increased, particularly for long-haul flights. Sector and regional recoveries vary, with tech companies lagging and Asia Pacific showing the fastest growth. The GBTA is also focusing on sustainability and passenger facilitation as key policy priorities. The Skift Travel 200 index tracks the financial performance of nearly 200 travel companies, providing insights into the industry's economic health.
Business travel spending worldwide is projected to reach an all-time high of $1.48 trillion by the end of 2024, surpassing pre-pandemic levels for the first time, the Global Business Travel Association (GBTA) said Monday.
GBTA surveyed 4,100 business travelers across 28 countries.
Business travel volumes are not back to 2019 levels, but spending is up, especially for long-haul flights. 61% of travelers and 68% of business travel managers report spending more this year than last in the GBTA survey.
The association projects that global business travel spending will top $2 trillion in 2028. That would represent an annual compound growth rate between 2025 and 2028 of 7%.
Recovery Varies by Sector and Region
- Tech companies have been slower to return.
- Insurance, finance, and consultancies travel about as frequently as in 2019.
- Small- and medium-sized businesses are now broadly above 2019 levels.
- Regions also vary. Asia Pacific was the fastest-growing region in 2023 (36% growth), followed closely by Western Europe (33%). North America, the Middle East, and Latin America have already reached pre-pandemic spending levels.
Patterns have shifted.
There are some changed priorities.
- Day trips are less common.
- Longer trips with multiple meetings are becoming the norm.
Election Year Policy Priorities for Business Travel
- Sustainability solutions: Pushing for government support to help the industry decarbonize. Working with policymakers, particularly in Brussels, to understand and clarify sustainability standards (like CSRD) that will be implemented starting in 2025.
- Passenger facilitation: Addressing issues like visas, border crossings, and technology requirements. For example, GBTA wants government agencies to align on technology requirements, such as concerns about having to make smartphones accessible when landing in certain countries like China.
"The naysayers think that if you just have virtual meetings, that's all you need," said Suzanne Neufang, CEO of GBTA. "And guess what? The energy comes from actually meeting the people in person. And that energy translates into bottom-line gains for companies."
Neufang was installed as CEO of GBTA in February 2021 after a controversy ousted the previous leadership. GBTA membership has grown to close to 9,000 members, with the fastest growth in Asia Pacific.
Airlines Sector Stock Index Performance Year-to-Date
What am I looking at? The performance of airline sector stocks within the ST200. The index includes companies publicly traded across global markets including network carriers, low-cost carriers, and other related companies.
The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more airlines sector financial performance.
Photo Credit: An image of GBTA CEO Suzanne Neufang speaking on the main stage at the Global Business Travel Association conference in 2024 in Atlanta, Georgia. Skift / Sean O'Neill
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