Business travel this year is on track to surpass pre-pandemic levels and reach a record US$1.5 trillion sooner than previously predicted, a new report from the World Travel and Tourism Council has revealed.
The increase in remote work during the pandemic has had a disproportionate impact on corporate travel compared to leisure travel, with virtual platforms replacing in-person meetings.
Leisure travel last year was only 2.9% off its 2019 peak, while business travel continued to struggle, still trailing by 5.4%.
However, as business leaders reemphasize the importance of face-to-face interactions, business travel is now back and on track to reach a new record of US$1.5 trillion, a whopping 6.2% above 2019 levels.
US and China resume business
According to WTTC’s 2024 Economic Impact Trends Report, business travel spending in the United States, which accounted for 30% of the global total in 2019, is expected to reach USD 472 billion this year, which is the highest in the country in 2019. This is 13.4% higher than the previous record.
In China, the world’s second-largest business travel market, spending is expected to increase by 13.1% compared to 2019, reaching almost USD 211 billion.
Business travel spending in Germany, the third largest, is expected to reach US$87.5 billion, just under 1% above its 2019 peak, while business spending in the UK and France is set to reach record amounts of US$84.1 billion and US$42.1 billion. It is expected. to their respective economies.
WTTC President and CEO Julia Simpson said today at the World Tourism Organization’s 24th Global Summit in Perth, Western Australia. It highlights the importance of international travel for businesses around the world.
“Many business giants, including the United States, China and Germany, are expected to reach record numbers this year. Virtual meetings have played an important role in keeping people and businesses connected during the pandemic; Today’s report shows that business is better in person.”
said Paul Abbott, CEO of American Express Global Business, a leading travel and expense software and services company. “Since the pandemic restricted the movement of people, businesses around the world are focusing on travel and in-person connections more than ever.
“We have always said that travel is a force for good and drives economic and social progress. But when travel stops, GDP plummets, unemployment soars, and mental health declines. The world has become a more forgiving place, and the benefits of travel are no longer in doubt. Companies around the world, many for the first time, are growing their businesses and developing a winning culture. We invest in managed business travel to create.”
The report says other factors are also contributing to the resurgence of business travel.
As economies around the world recover post-pandemic and travel and tourism’s contribution to global GDP reaches record levels, companies will once again be able to reallocate more funds to corporate travel. It became.
The growth of blended travel, where travelers combine business and personal vacations, is also increasing the appeal of corporate travel.
The meetings, incentives, conferences and exhibitions (MICE) industry has also shown a strong recovery, restarting in-person events after a long period of cancellations and postponements.
