Global business travel expenditure is set to reach US$1.4 billion in
the upcoming year, surpassing 2019 figures for the first time
post-pandemic, according to the Global Business Travel Association
(GBTA).
GBTA’s latest Business Travel Index Outlook report diverges from the
less optimistic August 2022 forecast, which foresaw business travel
spending's delayed recovery until 2026 due to inflation and supply chain
disruptions.
Revising its forecast, GBTA noted that travel spending rebounded more
swiftly than anticipated just a year earlier. Suzanne Neufang, GBTA's
CEO, remarked, "The challenges foreseen for global business travel's
recovery over the past year did not materialise, which is a positive
development."
In 2022, total business travel spending escalated by 47% to US$1.03
trillion, emerging from two years of pandemic-induced restrictions and
virtual interactions. Accommodation constituted 38% of these
expenditures, while food and beverage accounted for 19%. Air travel and
ground transport formed 18% and 13% of expenses, respectively.
Anticipated growth for business travel expenditures in 2023 is 32%,
driven by pent-up demand, the resurgence of in-person meetings and
events, improved economic conditions, and diminishing recession
concerns. Inflation also contributes to revenue growth, with spending
outpacing travel frequency. GBTA predicts that business travel spending
will ascend to US$1.8 trillion by 2027, though it cautioned that remote
work expansion, virtual meeting tech adoption, and sustainability
initiatives might temper this growth.
Disparities in business travel spending growth are evident across
regions and industries. Western Europe experienced a surge of 109% in
business travel spending in 2022, rebounding from a lackluster 2021,
while North America and Latin America saw growth of 73% and 63%,
respectively. However, Emerging Europe only saw a 25% increase due to
the conflict in Ukraine, and Asia Pacific's growth was restrained by
ongoing pandemic restrictions in China, growing by only 15%.
China, which faced a 4.6% decline in business travel in 2022, is
expected to regain its position as the leading global business travel
market in 2023, with an anticipated 39% growth and $360 billion in
spending.
Certain sectors, including construction, education, and professional,
scientific, and technical activities, displayed greater resilience in
business travel.
According to a GBTA survey of 4,700 global business travellers, the
average expenditure per person on a trip is US$1,018. The trend of
blended or "bleisure" travel, involving the fusion of business and
leisure, continues to gain popularity, with 62% of travellers
integrating business and pleasure more frequently than in 2019.
Approximately 42% of respondents are adding leisure days to their
business trips, and 79% are opting for the same accommodation for both
segments of their journey.