Global Business Travel Association Poll Reveals Optimism and Growth in Business Travel Amidst Rising Costs and Evolving Workplace Models.
The global business travel industry is set for a robust yet challenging year in 2024, as indicated by the latest insights from the Global Business Travel Association (GBTA) Business Travel Outlook Poll. With the pandemic firmly in the rearview mirror, industry professionals are riding a wave of momentum at the start of this year. Despite facing significant challenges, most travel buyers remain optimistic about the future of business travel, demonstrating a solid resurgence in travel volume and spending.
Optimistic Start to the Year
According to the 33rd edition of GBTA’s long-running poll, conducted from January 9 to January 22, 2024, over 700 business travel professionals from 41 countries participated, providing valuable insights into the state of the business travel industry.
A staggering 83% of travel buyers reported year-over-year gains in travel volume for 2023, with 31% experiencing significant increases, 37% moderate, and 15% slight increases compared to the previous year. The story is mirrored in travel spending, with 84% of buyers indicating that their travel spending surged significantly (33%), moderately (38%), or slightly (13%) over the same period.
Momentum Expected to Persist
The optimism is expected to continue throughout 2024, with 59% of buyers anticipating an increase in business trips compared to 2023. Only 11% expect a decline in business travel. Regionally, North American buyers are more bullish, with 66% expecting an increase, compared to 37% of European buyers.
Moreover, 67% of buyers foresee a rise in their company’s travel spending in 2024, while only 11% anticipate reduced expenditure. This trend aligns with GBTA’s October 2023 poll, indicating a consistent positive outlook.
A New Chapter Beyond the Pandemic
With over half of respondents (57%) deeming it irrelevant to compare industry performance for 2024 against pre-pandemic levels in 2019, it’s clear that the business travel industry has entered a new era—pandemic-related concerns ranked at the bottom of the list, cited by just 1% of those surveyed.
Challenges and Concerns
Despite the optimism, industry stakeholders are not blind to the challenges ahead. The rising cost of travel tops the list of concerns, with 66% of respondents expressing apprehension. Other notable concerns include overall economic uncertainties (46%), corporate budgets lagging behind (42%), travel disruptions (32%), and geopolitical issues (22%).
Talent and Sustainability
Building a diverse, robust workforce remains a priority for the industry. Barriers to achieving this goal include unattractive salary levels and benefits (53%), a shortage of qualified/experienced candidates (48%), lack of organizational investment in retaining and developing talent (40%), unappealing job roles (39%), and the need to hire and train new industry job seekers (36%).
Climate impact and sustainability are gaining prominence in the industry, with 19% of respondents expressing concern. Notably, this concern is more pronounced among European respondents, standing at 41%, compared to 12% in North America. Technological advancements, including artificial intelligence, were cited by 19% of all respondents as a top concern, with disparities between travel suppliers (27%) and buyers (13%).
Evolving Employee Travel Programs
The rise of hybrid and remote work models has prompted companies to reevaluate their employee travel policies. A substantial 62% of respondents reported that their companies have adopted a hybrid model, allowing both office and remote work. Nearly half (48%) have already revised or plan to revise their business travel policies in response to remote and hybrid work.
The key areas being addressed to remote and hybrid employees include the types of meetings allowed for travel (40%), the frequency of travel to the office (32%), the modes of transportation (26%), per diems (22%), and accommodations (20%) that can be reimbursed. Nevertheless, 40% of respondents do not intend to alter their travel programs for remote and hybrid employees.
Regarding economic impact, 27% noted that their company’s travel program costs have increased to accommodate remote and hybrid employees, while 37% reported no significant changes.
Business Travel Allocation in 2024
As business travel resumes its upward trajectory, respondents anticipate allocating it primarily to sales and account management meetings (36%), external conferences and industry events (20%), and internal meetings with colleagues (20%). Service trips (9%), employee training and development (7%), supplier meetings (6%), and other types of business travel (5%) round out the list of expected allocations.
The GBTA’s January 2024 Business Travel Outlook Poll provides a comprehensive view of the current state of the business travel industry. Despite rising costs and evolving workplace models, the sector remains resilient and optimistic about the future. As businesses prioritize in-person connections, the business travel sector appears set for another year of growth and transformation.
For further details and the 33rd GBTA Business Travel Industry Outlook Poll results, please visit GBTA’s official website.
Written by: Bridget Gomez
