Business travel this year is expected to surpass pre-pandemic levels and reach $1.5 trillion faster than previously predicted, according to the latest report from the World Travel and Tourism Council (WTTC).
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. According to the report, leisure travel in 2023 was only 2.9% lower than its peak in 2019, while business travel continued to struggle, still at a 5.4% difference.
With business leaders emphasizing the importance of face-to-face interactions, business travel is now rebounding and on track to reach a new record, 6.2% above 2019 numbers.
Business travel is expected to reach a new record $1.5 trillion, 6.2% higher than 2019, according to the WTTC report.
US and China lead business travel spending
The United States accounted for 30% of total global business travel spending in 2019. Business travel spending is expected to reach $472 billion this year, an increase of 13.4% compared to the country’s record in 2019.
China, the world’s second-largest business travel market, is expected to see business travel spending increase 13.1% from 2019 levels to nearly $211 billion.
Business travel spending in Germany, the third-largest country, is expected to reach $87.5 billion, 1% above its 2019 peak.
In the UK and France, business travel is predicted to inject $84.1 billion and $42.1 billion into their respective economies.
Julia Simpson, president and CEO of WTTC, said business travel is not only back on track, but is rebounding much faster than expected, highlighting the importance of international travel for businesses. He said that it has become.
“Many business powerhouses, such as the United States, China, and Germany, are expected to reach record numbers this year.While 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,” Simpson said.
WTTC’s research also identified other factors that contributed to the recovery in business travel. As economies around the world normalize after the pandemic and the travel and tourism sector’s contribution to global GDP reaches record numbers, companies are able to allocate more funds to corporate travel.
The popularity and growth of mixed travel (bleisure) is also increasing the attractiveness of corporate travel, the study added. The MICE industry has seen a strong recovery, with in-person events returning after a long period of cancellations and delays.
Since the movement forced people to stay home and restrict movement, businesses around the world have placed greater emphasis on travel and in-person connections than ever before.
“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 creating winning cultures. We’re investing in managed business travel to help us do that,” said Paul Abbott, CEO of American Express Global Business.
