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GBTA - logoThe global business travel sector is poised for a monumental comeback, with spending forecasted to reach an unprecedented $1.48 trillion in 2024. This projection, outlined in the latest Global Business Travel Association (GBTA) Business Travel Index Report, reflects the sector’s robust recovery and adaptability in a post-pandemic world.

Economic Stability Fuels Growth

Driven by economic stability and a resurgence in business activities, the business travel industry is set to surpass the pre-pandemic spending record of $1.43 trillion achieved in 2019. The GBTA’s comprehensive report predicts that 2028 global business travel spending will exceed $2 trillion, underscoring the sector’s resilient trajectory.

“Business travel has demonstrated remarkable resilience, overcoming the challenges posed by the global pandemic,” said Suzanne Neufang, CEO of GBTA. “The projected spending growth through 2028 reflects the critical role business travel plays in the global economy. However, we must remain adaptive to potential headwinds such as changing economic conditions, technological advancements, and sustainability considerations.”

Detailed Insights from GBTA’s 2024 Business Travel Index

Unveiled at the GBTA Convention 2024 in Atlanta, the 16th edition of the GBTA Business Travel Index (BTI) presents an exhaustive forecast covering 72 countries and 44 industries. This year’s report also incorporates data from a survey of 4,100 business travellers across five global regions, providing a comprehensive view of business travel preferences, behaviours, and spending patterns.

Key Findings and Regional Variations

  • 2024 Projections: Business travel spending is expected to grow by 11.1% in 2024, following significant growth rates of 30%-47% in 2022 and 2023. The annual compound growth rate is projected to moderate to 6.95% from 2025 to 2028.
  • Spending Breakdown: In 2023, business travel expenditures totalled $1.34 trillion, with $501 billion allocated for lodging, $282 billion for air travel, $245 billion for food and beverage, $165 billion for ground transportation, and $142 billion for other expenses.
  • Regional Growth: Asia-Pacific led the recovery in 2023 with a 36% increase in spending, followed by Western Europe (33%) and North America (25%). The U.S., Middle East, Africa, and Latin America surpassed 2019 spending levels.
  • Top Markets: China and the U.S. are forecasted to remain the leading markets for business travel spending in 2024.

Sector-Specific Insights

  • Industry Growth: The financial and insurance sectors are projected to see the highest growth in business travel spending through 2028, with a 72% increase. Conversely, the retail trade and agriculture sectors are expected to experience the most minor growth.
  • Challenges and Opportunities: Persistent inflation, geopolitical tensions, workforce challenges, and natural disasters pose potential risks. However, economic stability, technological advancements, and stronger-than-expected growth in key markets like the U.S. and India present significant opportunities.

Business Traveler Preferences

  • Spending Trends: Business travellers globally report an average spending of $834 per trip, with lodging ($312) and food and beverage ($153) being the primary expenses.
  • Trip Priorities: Comfort and cost remain top priorities for business travellers, with a growing emphasis on reducing carbon emissions, particularly among European travellers.
  • Payment Methods: Corporate credit cards and mobile wallets are increasingly popular, with 61% of business travellers using corporate credit cards and 87% utilizing mobile wallets for business transactions.

The Future of Business Travel

“As business travel spending continues to expand, digital payments will revolutionize the travel experience, making it effortless and secure,” said Veronica Fernandez, head of Commercial Solutions for Visa. “Visa is at the forefront in enabling smooth and efficient transactions that keep business travelers moving seamlessly.”

The 2024 GBTA Business Travel Index highlights the resilient and dynamic nature of the business travel sector. As spending approaches record, the industry must navigate potential challenges and leverage opportunities to ensure sustained growth and innovation.

GBTA members can access the full BTI report on the GBTA Hub for more detailed insights. For additional information or historical data inquiries, contact [email protected].

 

 

 

Written by: Soo James

 

 

 

 

 

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