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Tourism

Business Travel to Reach Historic Highs in 2024, Surpassing Pre-Pandemic Levels

  • Business Travel to Reach Historic Highs in 2024, Surpassing Pre-Pandemic Levels
    Business Travel to Reach Historic Highs in 2024, Surpassing Pre-Pandemic Levels
Region:
World
Category:
Tourism
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Perth, Australia: A groundbreaking report from the World Travel & Tourism Council (WTTC) has forecasted that business travel is poised to exceed pre-pandemic levels in 2024, marking a significant milestone as it surges to a record-breaking US$1.5 trillion.

The advent of remote work during the pandemic profoundly impacted corporate travel, contrasting sharply with leisure travel, which showed signs of recovery sooner with the aid of virtual platforms replacing in-person gatherings.

In the previous year, leisure travel trailed just 2.9% behind its 2019 peak, whereas business travel struggled further, lagging 5.4% behind.

However, with business leaders reaffirming the importance of face-to-face interactions, corporate travel has rebounded remarkably, set to surpass 2019 levels by an impressive 6.2%, reaching the unprecedented US$1.5 trillion mark.

U.S. and China Lead the Charge

According to the WTTC’s "2024 Economic Impact Trends Report," business travel expenditure in the United States, which accounted for 30% of the global total in 2019, is projected to soar to US$472 billion this year—13.4% higher than its pre-pandemic peak.

In China, the world’s second-largest business travel market, expenditure is anticipated to surge by 13.1% above 2019 levels, nearing US$211 billion.

Germany, as the third-largest market, expects to reach US$87.5 billion in business travel spending, nearly 1% higher than its 2019 peak. Meanwhile, the United Kingdom and France are set to inject record-breaking amounts of US$84.1 billion and US$42.1 billion, respectively, into their economies through business travel.

Speaking at the WTTC’s 24th Global Summit in Perth, Western Australia, Julia Simpson, President & CEO of WTTC, remarked, “After several challenging years, business travel is not only back on track but recovering faster than anticipated, underscoring its pivotal role in international business operations.”

Simpson added, “Major economies such as the U.S., China, and Germany are poised for record-breaking years. While virtual meetings played a critical role during the pandemic in maintaining connections, today’s report underscores the irreplaceable value of face-to-face interactions.”

Paul Abbott, CEO of American Express Global Business Travel, a leading provider of business travel solutions, commented, “Companies worldwide now place unprecedented value on travel and personal connections, especially in the wake of restricted mobility during the pandemic.”

Abbott continued, “Travel has long been recognized as a catalyst for economic and social progress. However, its temporary halt resulted in economic downturns, increased unemployment, heightened mental health issues, and diminished global tolerance. The benefits of travel are now unequivocally clear. Companies worldwide—many for the first time—are investing in managed corporate travel to drive business growth and foster resilient organizational cultures.”

The WTTC report also highlights additional factors contributing to the resurgence of business travel.

As global economies have rebounded post-pandemic, with the Travel & Tourism sector contributing record levels to global GDP, businesses have been able to reinvest in corporate travel.

The rise of blended travel, combining business trips with personal leisure, has further bolstered the appeal of corporate travel.

Moreover, the Meetings, Incentives, Conferences, and Exhibitions (MICE) industry has staged a robust recovery, resuming in-person events after a prolonged period of cancellations and postponements.