The future of business travel
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n day three of ATM (May 11), the Global Business Travel Association (GBTA) hosted two conference sessions, one of which provided insights on the future of the business travel sector. Catherine Logan, Regional Vice President – EMEA, GBTA, presented findings of the the BTI Outlook (Nov 2021). Now in its 13th edition, the BTI Outlook is an exhaustive annual study of business travel spending and growth covering 73 countries across 44 industries. It found business travel activity has begun its rebound from the sharp downturn brought about by the COVID-19 pandemic. After declining 53.8 per cent in 2020 to $661 billion, global expenditures are expected to have rebounded 14 per cent in 2021 to $754 billion and to $1 trillion in 2022. “This trend is supported by both our own monthly GBTA polls and from feedback we are hearing across the industry,” said Logan. Employee travel willingness had rocketed, says the GBTA
$1.48 trillion Business travel spend predicted for 2024 Above the 2019 pre-pandemic spend of $1.4 trillion
80% Of companies now permit some or more domestic business travel within their country
55% Of companies now permit some or more international business travel within their country
88% Of suppliers and TMCs reported corporate travel booking increases in March, compared to 45% in February
94% Of GBTA buyers and procurement professionals believe their employees are now “willing” or “very willing” to travel for business in the current environment. (Source: BTI Outlook (Nov 2021) and GBTA polls) JUNE 2022
She added: “By 2024, global business travel is forecast to have made a full recovery, ending the year at $1.48 trillion or just above the 2019 pre-pandemic spend of $1.4 trillion.” Logan said business travel recovery would vary by region, country and industry over this period due to economic and political factors such as persistent COVID-related threats and disruptions, supply chain strains, labour shortages, rising inflation and increased costs. “Additionally, yet to be determined are the potential impacts of emerging factors including broad adoption of remote working models, long-term cuts or elimination of business trips and travel volume, and the increased focus on sustainability practices and policies for business travel,” she added. The latest GBTA poll results released at the end of April reveal business travel is surging, international travel is returning and despite new challenges, industry recovery is entrenched, with 80 per cent of companies now permitting some or more domestic business travel within their country, an increase of 13 percentage points on the association’s February poll. Similarly, 55 per cent of companies now allow some or more international business travel, an increase of 26 percentage points compared to February. Corporate travel bookings are returning too, with 88 per cent of suppliers and travel management companies (TMCs) reporting their bookings increased in the prior month (March). “This is much higher than the share who said the same in February (45 per cent),” said Logan. In addition, companies reporting they sometimes allow non-essential domestic business travel increased to 86 per cent in April’s poll, up from 73 per cent in February, while international travel made a big jump with 74 per cent reporting their company now permits it, up 26 percentage points from February.
