While consumers have fully returned to the skies, business travelers have been a bit scarcer in the post-pandemic years. But a new study by the Global Business Travel Association indicates the corporate road warriors are set to ride once more.
Overall spending on business travel is expected to surpass the pre-pandemic levels of $1.4 trillion in 2024—and grow to $1.7 trillion by 2027, the trade group forecasts. That’s a huge turnaround from recent years. In 2021, total spending on global business travel was a disappointing $697 billion, hampered by the Omicron variant and another spike in COVID cases.
Things began to pick up again last year, with spending coming in at $1.03 trillion. And the numbers are expected to grow another 32% this year, with an estimated total of over $1.3 trillion. That’s a big turnaround from bears who had claimed business travel would never return to normal.
While companies have had mixed luck in convincing workers to return to their desks, the fact that the oft-predicted recession has yet to arrive has spurred companies to send people back out on the road.
“The headwinds that were anticipated to impact the rebound of global business travel over the past year didn’t materialize and that is good news,” said Suzanne Neufang, CEO of the GBTA, in a statement. “This latest forecast now indicates an accelerated return to pre-pandemic spending levels sooner than anticipated as well as growth ahead in the coming years.”
Many other facets of life that once seemed unthinkable in the heart of the pandemic have once again become the norm, from dining at a restaurant to shaking hands with a stranger. Going to the movies and working five days a week in the office seem to be the major exceptions in post-pandemic life, but the surprise “Barbenheimer” blockbuster is challenging that view as well.
The travel industry relies heavily on business travelers, since they often book last-minute and are some of the industry’s biggest spenders when it comes to upgrades and perks, such as airport lounges.
Worldwide, Western Europe was the fastest growing region for business travel, with North America and Latin America also showing significant increases.