Business travel set to reach a record $1.5 trillion in 2024
A new report from the World Travel & Tourism Council (WTTC) has revealed that business travel is set to surpass pre-pandemic levels this year
The rise of remote working during the pandemic had a disproportionate effect on corporate travel compared with leisure travel, with virtual platforms replacing face-to-face meetings.
Last year, leisure travel was just 2.9% behind the 2019 peak, while business travel continued to struggle, remaining 5.4% behind.
But as business leaders have re-emphasised the importance of face-to-face interaction, business travel is now back and is set to exceed 2019 levels by an impressive 6.2% to reach the new US$1.5 trillion record.
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 –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, 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, WTTC President and 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.”
Paul Abbott, American Express Global Business Travel CEO, reflected: “We always said travel was a force for good, driving economic and societal progress. When travel stopped, 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. Companies around the world – many for the first time – 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 gross domestic product (GDP) contribution reaching record levels, businesses have been able to reallocate more funds towards corporate travel once again.
The growth of blended travel, whereby travellers combine business trips with personal holidays, has also enhanced the appeal of corporate travel.