Business travel is making a strong comeback, surpassing pre-pandemic levels to reach $1.5 trillion. dollar.
New exhibition of World Travel and Tourism Council (WTTC) revealed that business trips are expected to surpass pre-pandemic levels this year, faster than forecast, reaching a record 1.5 trillion. dollar
The rise of remote work during the pandemic has had a disproportionate impact on business travel compared to leisure travel, with virtual platforms replacing in-person meetings.
Last year, leisure travel was just 2.9% off its 2019 peak, while business travel continued to struggle, falling 5.4%.
But as business leaders re-emphasized the importance of face-to-face communication, business travel is making a comeback and is expected to surpass 2019 levels by an impressive 6.2%, reaching a new record of 1.5 trillion. dollar
The US and China are back in action
According to the report, “Economic Impact Trends 2024” of WTTC, business travel expenses of USAwhich accounted for 30% of the global total in 2019, are expected to reach $472 billion this year, 13.4% above the country’s 2019 record.
c Chinathe world’s second-largest business travel market, spending is expected to grow 13.1% in 2019 to nearly $211 billion.
Expenses for business trips to Germanythe third largest market, is expected to reach $87.5 billion, just under 1% above 2019’s record, while business travel to Great Britain and on France are expected to contribute a record $84.1 billion and $42.1 billion to their respective economies.
At the 24th World Summit of the World Travel and Tourism Council (WTTC) in Perth her Western Australia mrs Julia Simpson president and CEO of WTTC, said: “After a few difficult years, business travel is not only back on track, but recovering much faster than expected, underscoring the importance of international travel for businesses around the world.
“Many business hubs, such as the US, China and Germany, are expected to reach record numbers this year. While virtual meetings have played a key role during the pandemic, keeping people and businesses connected, today’s report shows that businesses are doing better with face-to-face contact.”
mr Paul Abbottits CEO American Express Global Businessa business travel and expense software and services company, said: “Companies around the world value travel and personal contact more than ever as people’s movement is restricted during the pandemic.
“We have always said that travel is a force for good that drives economic and social progress. But when travel stopped, GDP collapsed, unemployment rose, mental health problems escalated and the world became less tolerant. The benefits of travel are no longer in doubt. Companies around the world – many for the first time – are investing in managed business travel to grow their businesses and create successful cultures.”
Other factors also contributed to the recovery in business travel, according to the report.
As economies around the world have recovered from the pandemic, with tourism and travel contributing to global GDP at record levels, businesses have been able to shift more capital to business travel.
The growth of ‘blended trips’, where travelers combine business travel with personal holidays, has also boosted the appeal of business travel.
The Meetings, Incentives, Conferences and Exhibitions (MICE) industry has also made a strong comeback, resuming live events after a long period of cancellations and postponements.