Corporate travel spending worldwide is forecast to hit a record $1.48 trillion this year, surpassing the level of 2019, and should reach $2 trillion by 2028, according to the Global Business Travel Association (GBTA).
However, the spending forecasts, contained in the latest GBTA Business Travel Index Report, make no allowance for inflation since 2019 and GBTA notes that while overall business travel has increased, international and group travel remain below 2019 levels.
A survey of 4,100 business travellers for the GBTA Index Report found almost two-thirds (64%) reported increased spending on business travel this year compared to 2023.
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Yet more than one-third (37%) said their company travel policies were more restrictive than pre-pandemic.
Three quarters (76%) said they travelled as much or more for business as pre-Covid, with 28% traveling more and 20% less.
The report, launched at the GBTA conference in Atlanta, notes the “relative stability” of the world economy following the post-pandemic recovery is driving growth in the sector, with many corporate travel markets “returned to or nearing pre-pandemic levels”.
But it notes spending forecasts continue to lag pre-Covid highs when adjusted for inflation, suggesting “business travel volumes will remain below pre-pandemic levels”, and it warns of “downside risks” to the sector.
These include “persistent inflation, China’s slower recovery, geopolitical tensions, industry workforce challenges and the incidence of natural disasters” as well as an increased focus on corporate sustainability.
By contrast, continuing economic stability, technology advances such as in artificial intelligence, and “stronger-than-expected economic growth in key markets” could positively impact the sector.
GBTA chief executive Suzanne Neufang said: “The future of business travel looks promising. However, we must remain vigilant and adaptive to potential headwinds, as changing economic conditions, technological advancements and sustainability developments will also shape the sector.”
The report forecasts business travel spending will rise 11% this year from the $1.34 trillion spent in 2023.
This follows growth of 47% last year and 30% in 2022 as travel recovered from the pandemic, after the sector plunged in 2020-21 from record spending of $1.43 trillion in 2019.
GBTA suggests growth will continue to moderate and predicts compound growth of 6.95% a year between 2025 and 2028.
The recovery in the sector continues to vary by region, with Asia Pacific business travel growing by 36% year on year in 2023, Western Europe by 33% and North America by 25%.
The $1.34 trillion estimated to have been spent in 2023 comprised $501 billion on accommodation, $282 billion on flights, $245 billion on food and drink, $165 billion on ground transport and $142 billion on other travel expenses
Average spending per person per trip was estimated at $834.
The most common purpose of travel was to attend seminars or training, followed by conferences.
Four out of five survey respondents (81%) rated their most recent business trip ‘worthwhile’, with 46% considering the trip ‘very worthwhile’ and 35% ‘moderately’ so.
Two-fifths of the trips (40%) were for three to five nights and 32% for two nights.
Almost three out of five respondents (58%) said they extended work trips for leisure, but only 17% said they do so more frequently than pre-Covid.
Asked about their priorities when traveling for work, 43% of business travellers said they sought maximum comfort and 41% to minimize cost. Only 16% identified reduced carbon emissions as a priority, although 22% did so in Europe.