Worldwide spending on business travel is expected to reach almost $1.8tn by 2027, according to industry experts.
The global business travel industry has rebounded at a more accelerated rate than expected just a year ago and is now expected to surpass its pre-pandemic spending level of $1.4tn in 2024.
Last year business travel spending increased 47 per cent to $1.03tn, with strong gains continuing and 32 per cent growth expected in 2023.
Business travel spending
These gains were fuelled by pent-up demand after the COVID-19 pandemic, favourable global economic conditions in 2022 and 2023 and recession risks that have yet to happen.
These are the central findings from the latest 2023 GBTA Business Travel Index Outlook – Annual Global Report and Forecast published by the Global Business Travel Association in collaboration with Visa.
The GBTA Business Travel Outlook is an annual exhaustive forecast of business travel spending and growth covering 72 countries and 44 industries.
Suzanne Neufang, CEO at GBTA, said: “The headwinds that were anticipated to impact the rebound of global business travel over the past year didn’t materialise and that is good news.
“This latest forecast now indicates an accelerated return to pre-pandemic spending levels sooner than anticipated as well as growth ahead in the coming years.
“Business travel spending is a key indicator, but how travel volumes will continue to rebound is yet to be seen.
Business travellers currently estimate their own business travel spending, on average, amounts to $1,018 per person per trip.
On average, lodging accounts for $391 and food and beverage is $189.
Air averages $182 while ground transportation ($136) and miscellaneous expenses ($120) rounds out the total.
At the same time, business travellers say they are more frequently (62 per cent) blending business and personal travel (i.e. bleisure travel) than they did in 2019, with 42 per cent adding additional leisure days to their business trips and 79 per cent of these travellers staying at the same accommodation for business and vacation portions of their trip.