Business travel is poised to surpass pre-pandemic levels faster than previously predicted to reach a record $1.5 trillion this year, a new report reveals.
Leisure travel was just 2.9% behind the 2019 peak in 2023, while business travel continued to struggle, remaining 5.4% behind.
The rise of remote working during Covid had a disproportionate effect on corporate travel, compared to leisure trips, with virtual platforms replacing face-to-face meetings.
However, corporate travel is now back and is set to exceed 2019 levels by 6.2% to reach the new record as business leaders re-emphasised the importance of face-to-face interaction.
The level of recovery was disclosed in an economic impact trends report released by the World Travel & Tourism Council.
Firms have been able to reallocate more funds towards corporate travel once again as economies around the world have rebounded since the pandemic
The growth of blended ‘bleisure’ travel, with travellers combining business trips with personal holidays, has also enhanced the appeal of corporate travel.
The meetings, incentives, conferences, and exhibitions (MICE) industry has also made a strong comeback, resuming in-person events after a long period of cancellations and postponements, according to the report released at the WTTC’s 24th global summit in Perth, Australia.
Corporate travel in the UK and France is expected to inject a record-breaking $84.1 billion and $42.1 billion into their respective economies.
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 pre-Covid record.
China, the world’s second largest business travel market, is forecast to see spending 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.
WTTC president and chief executive Julia Simpson 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.
“Many business powerhouses such as the US, China and Germany are expected to reach 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 face-to-face.”
American Express Global Business Travel chief executive Paul Abbott said: “Companies around the world value travel and in-person connections more than ever, since people movement was restricted during the pandemic.
“We always said travel was a force for good, driving economic and societal progress.
“But 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.”