The global business travel industry has rebounded at a more accelerated rate than was expected just a year ago and is now expected to surpass its pre-pandemic spending level of $1.4 trillion in 2024 — and grow to nearly $1.8 trillion by 2027, according to the latest 2023 GBTA Business Travel Index Outlook – Annual Global Report and Forecast (BTI) published by the Global Business Travel Association (GBTA) in collaboration with Visa.
In 2022, according to the report, global business travel spending rose 47% to $1.03 trillion, with strong gains continuing and 32% growth expected in 2023. These robust gains were fueled by pent-up demand after the COVID-19 pandemic, more favorable global economic conditions in 2022 and 2023 and recession risks that have yet to happen.
Unveiled at the 2023 GBTA Convention in Dallas, the report is an annual forecast of business travel spending and growth covering 72 countries and 44 industries.
Suzanne Neufang, CEO of GBTA, said the headwinds that were anticipated to impact the rebound of global business travel over the past year didn’t materialize. This latest forecast, she said, 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, said Neufang, but how travel volumes will continue to rebound is yet to be seen. The BTI data, she said, “also reflects the remarkable efforts of the industry to adapt, innovate and thrive despite the challenges, along with the ongoing role and value of business travel to economies, companies and professionals worldwide.”
Other highlights from the report include:
- The two biggest drivers in the industry’s stabilization over the last six months have been the return of in-person meetings and events and the recovery of some international business travel capacity and volumes.
- Recovery in business travel continues to vary by region. Western Europe was the fastest-growing region globally in 2022. North America and Latin America saw spending growth accelerate significantly in 2022. Eastern Europe continues to lag in its recovery, challenged by the war in Ukraine.
- Business travel spending recovery also continues to differ based on industry, with construction, education, and professional, scientific and technical activities showing the most resiliency.
- Business travelers globally 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) round out the total.
- Business travelers say they are more frequently (62%) blending business and personal travel (i.e., bleisure travel) than they did in 2019, with 42% adding additional leisure days to their business trips and 79% of these travelers staying at the same accommodation for business and vacation portions of their trip.
- When it comes to payment methods for business travel, 66% of business travelers say their company provides them with a corporate credit card; of that percentage, 37% say their company mandates its use for booking business travel.
- For business travelers who are provided a corporate card, 64% have uploaded their card to a mobile wallet. Almost 87% use their mobile wallet for at least 10% of their business transactions, with 33% using it for at least 20%.
