A new report from the World Travel & Tourism Council (WTTC) has revealed that business travel is set to surpass pre-pandemic levels this year, faster than previously predicted, to reach a record US$1.5 trillion.
The rise of remote working during the pandemic had a disproportionate effect on corporate travel, compared to leisure travel, with virtual platforms replacing face-to-face meetings.
Last year, leisure travel was just 2.9 per cent behind the 2019 peak, while business travel continued to struggle, remaining 5.4 per cent behind.
However, as business leaders re-emphasised the importance of face-to-face interaction, business travel is now back and is set to exceed 2019 levels by an impressive 6.2 per cent to reach the new US$1.5 trillion record.
According to WTTC’s 2024 Economic Impact Trends Report, business travel spending in the US, which accounted for 30 per cent of the global total in 2019, is expected to reach US$472 billion this year – 13.4 per cent above the country’s 2019 record.
In China, the world’s second largest market for business travel, spending is forecast to grow 13.1 per cent above 2019 to reach almost US$211 billion.
Business travel spend in Germany, the third largest, is set to reach US$87.5 billion, just under one per cent above the 2019 peak, while business travel in the UK and France is expected to inject a record-breaking US$84.1 billion and US$42.1 billion respectively into their respective economies.
Speaking at the WTTC 24th Global Summit in Perth, Western Australia, this week, Julia Simpson, WTTC president & CEO, 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.”
Paul Abbott, American Express Global Business CEO, 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.”
According to the same report, other factors have also contributed to the resurgence of business travel. Among them, more businesses are reallocating funds towards corporate travel, the growth of blended travel or bleisure, and the strong resumption of business events after a long period of cancellations and postponements.
