+1 (773) 234-5010Exciting news from the Global Business Travel Association (GBTA) this week! Business travel is set to reach an all-time high of $1.48 trillion in 2024, surpassing the previous record of $1.43 trillion from 2019. This optimistic projection comes from the latest GBTA Business Travel Index Report, known as the BTI, which was unveiled at the GBTA Convention in Atlanta.
For the first time, business travel spending is expected to exceed pre-pandemic levels. GBTA forecasts that from 2025 to 2028, growth will stabilize with an annual compound growth rate of 6.95%. The report credits favorable conditions in 2022 and 2023, along with increased confidence among top executives in the importance of business travel.
“We are witnessing the anticipated rebound in the sector, showcasing the resilience and adaptability of businesses and the global value of business travel,” says GBTA CEO Suzanne Neufang. “With spending projected to rise steadily through 2028, the future of business travel is bright. However, we must stay alert and adaptable to potential challenges during this stabilization period, considering factors like economic shifts, technological advancements, and sustainability trends that will shape the sector’s future.”
Key Highlights from the Report:
- Regional Recovery Variances:
- Asia Pacific led the growth in 2023 with a 36% increase, followed by Western Europe at 33% and North America at 25%.
- The US, Middle East, Africa, and Latin America all surpassed their 2019 spending levels in 2023.
- In 2024, China and the US are expected to remain the top markets for business travel spending.
- Sector-Specific Growth:
- The financial and insurance activities sector is projected to see the most significant increase (72%) in business travel spending by 2028.
- Retail trade (41%) and agriculture, forestry, and fishing (32%) are expected to grow at a slower pace.
- Potential Growth Drivers:
- Continued economic stability, advancements in technology, especially AI, and robust economic growth in key markets like the US and India could further boost the business travel sector.
- Traveler Spending Patterns:
- Business travelers worldwide estimate their average spending at $834 per person per trip, with ground transportation accounting for $103 of that total.
- Comfort and cost-efficiency are equally prioritized by travelers globally, with 43% emphasizing comfort and 41% focusing on minimizing costs. Notably, 16% are also considering reducing carbon emissions, with European travelers (22%) showing a higher preference for this priority.
- Corporate Credit Card Usage:
- Nearly two-thirds (61%) of global business travelers use corporate credit cards for bookings, with North American travelers leading in this practice.
This year’s forecast paints an optimistic picture for business travel, highlighting the sector’s dynamic recovery and promising future. Let’s embrace the opportunities ahead and continue to thrive in this ever-evolving landscape!
