Business travel is on the up and up - and up - with record spending predicted for 2024 and a steady increase expected in the coming years, according to the Global Business Travel Association.
The association's 2024 Business Travel Index Outlook, released Monday at the GBTA Convention in Atlanta, predicts spending will reach $1.48 trillion by the end of this year - up from the prior record of $1.43 trillion in 2019.
And the growth is projected to continue annually, with business travel spending projected to surpass $2.0 trillion by 2028. The report is based on data from 72 countries across 44 industries. It also includes results of a survey of 4,100 business travelers from 28 markets around the globe to provide insights on travel frequency, preferences, corporate card use and more.
“We are witnessing the expected rebound in the sector, reflecting the resilience and adaptability of businesses and the value of business travel worldwide,” said Suzanne Neufang, CEO of GBTA, who shared onstage at GBTA that the data is not adjusted for inflation.
The association said the predicted, continued rise over the next few years illustrates a robust path forward for the business travel industry as a result of “relative stability” across the global economy, the remnants of pent-up demand and a return to pre-pandemic business travel habits.
But Neufang cautioned, “We must remain vigilant and adaptive to potential headwinds in this period of stabilization, as factors such as changing economic conditions, technological advancements and sustainability developments will also shape the sector ahead.”
The updated predictions come on the heels of years of conflicting outlooks in the wake of the COVID-19 pandemic - and even exceeds expectations set in 2023.
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Last year, GBTA predicted global spending on business travel would reach $1.4 trillion this year - slightly below today's estimate - and $1.8 trillion in 2027, whereas now the prediction for that year is higher - $1.9 trillion.
Back in 2022, the association was much more cautious, voicing concern over inflation, elevated energy prices and more. At the time, the organization predicted global business travel spending would not exceed 2019's pre-pandemic record levels until 2026.
Asia Pacific leads business travel spending, growth
In GBTA's regional analysis, Asia Pacific will come out on top as the biggest spender on business travel this year, accounting for more than 41% of the global spend in 2024. North America is expected to be second, making up 26.7% of global spend, with Europe a close third, accounting for 26.4%. Latin America is predicted to account for 3.6% and the Middle East, 2%.
Digital wallets on the rise
Onstage at GBTA Monday, Neufang was joined by Veronica Fernandez, senior vice president and head of North America for Visa Commercial Solutions. The pair touched on a number of topics when it comes to the future of business travel, including the evolution of digital elements in travel.
"The acceleration of all things digital has created opportunities for technology to anticipate new customer expectations and enable seamless, secure and flexible business travel experiences," Fernandez said in the report's executive summary. "Everything from digital ticketing to virtual cards designed for business travel has been reimagined to meet customers’ needs in a digital-first world."
Based on the results of the traveler survey, the report states that more than half of business travelers have their corporate credit card loaded in a mobile wallet. But it varies by region, with the greatest adoption in Asia Pacific, where 69% of respondents said they use their corporate card in a digital wallet.
"I think it’s the way of the future, we’re going to see much more of it," Fernandez said.
Additional research released at GBTA
Also Monday global travel technology company Travelport released the results of its "2024 State of Modern Retailing" survey Monday, which found 58% of respondents report feeling overwhelmed by the number of choices during the booking process while shopping directly from providers.
“Despite travel providers favoring direct-to-consumer connections, the sheer volume of options is overwhelming to travelers, making them less confident in their booking choices,” said Jen Catto, chief marketing officer at Travelport.
The research was based on responses from 1,659 consumers from the United States, South Africa, Germany and the United Kingdom. All participants had taken at least one flight for business or pleasure in the prior 12 months.
Travelport said it estimates air travel options have increased from 500 economy and business options open for booking in 2010 to more than 10,000 options in 2024 between economy, economy plus, flexi-family, business, first class and other options, marking a 1,900% rise.
“Our research found that instead of feeling excited after booking a trip, most travelers are left feeling anxious, wondering if they got the best deal,” Catto said.
“For the travel industry, this signals a growing need and opportunity for travel agencies. Their expertise in comparison shopping aids travelers in confidently booking the best option, based on their personal preferences.”