The World Travel & Tourism Council (WTTC) has said that global business travel will surpass pre-pandemic levels this year, reaching a record $1.5 trillion.
According to the report “Economic Impact Trends 2024”, prepared by the world body, in 2023 leisure travel was only 2.9% below the 2019 peak, while business travel was 5.4% behind the levels of that same year.
The increase in remote work during the pandemic had a disproportionate effect on corporate travel, compared to leisure travel, as virtual platforms replaced in-person meetings.
However, as business leaders re-emphasize the importance of face-to-face interaction, business travel is rebounding and is expected to exceed 2019 levels by 6.2%.
Business travel spending in the United States, which accounted for 30% of the global total in 2019, is expected to reach $472 billion this year, 13.4% above the country's record in 2019.
In China, the world's second-largest market for business travel, spending is forecast to grow 13.1% from 2019 to $211 billion.
Business travel spending in Germany, the third-largest globally, 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 contribute $84.1 billion and $42.1 billion to their respective economies.
Speaking at the world tourism body’s 24th Global Summit in Perth, Australia, Julia Simpson, WTTC President and CEO, said: “After challenging years, business travel is rebounding much faster than expected, highlighting the importance of international travel for businesses around the world.”
"Many business powerhouses, including the US, China and Germany, are expected to hit record numbers this year. While virtual meetings played a crucial role during the pandemic, keeping people and businesses connected, today's report shows that business is better done face-to-face," added Julia Simpson.
Paul Abbott, CEO of American Express Global Business, a leading business travel software and services company, said: “Companies around the world value travel and in-person connections more than ever since mobility was restricted during the pandemic.”
"We've always said that travel was a force, driving economic and social progress. But when travel stopped, GDP plummeted, unemployment soared, mental health issues intensified and the world became a less tolerant place. The benefits of travel are 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," Abbott said.
According to the report, other factors have also contributed to the resurgence of business travel. As economies around the world have recovered since the pandemic, with travel and tourism’s contribution to global GDP reaching record levels, companies have been able to reallocate more funds to corporate travel.
The growth of package tours, where travellers combine business trips with personal holidays, has also increased the appeal of corporate travel.
The meetings, incentives, conferences and exhibitions (MICE) sector has also made a strong comeback, resuming in-person events after a long period of cancellations and postponements.
Source: WTTC.