Global business travel spend is set to exceed pre-pandemic levels by the end of this year, and the World Travel & Tourism Council (WTTC) says the reason is that companies find it better to do business face-to-face.
According to a report by the WTTC, corporate travel spend should reach US$1,5 trillion (R26,2trn) by the end of the year.
Corporate travel's post-pandemic recovery had lagged leisure travel, but it is now showing surprising growth, particularly in spending.
“After a challenging few years, business travel is not only back on track, but it is recovering much faster than expected, highlighting the importance of international travel for businesses around the world,” said WTTC President and CEO, Julia Simpson, at the WTTC's 24th Global Summit in Perth.
In 2023, leisure travel spend was only 2,9% behind pre-pandemic levels, while business travel lingered at 5,4% below pre-pandemic levels.
According to WTTC data, corporate travel spend this year is now set to exceed its 2019 levels by 6,2%, reaching a new all-time high of US$1,5 trillion.
During the pandemic, remote working often meant that virtual meetings replaced face-to-face business interactions, leading to more of a decline in corporate travel compared with leisure travel, says the WTTC.
"While virtual meetings played a crucial role during the pandemic, keeping people and businesses connected, today’s report shows that business is better face to face,” said Simpson.
Recently, business leaders have emphasised in-person engagements, creating a turnaround for corporate travel.
This rapid growth is further driven by:
*recovering worldwide economies – companies have more financial resources to assign to corporate travel;
*the popularity of 'bleisure' travel – the growing trend where travellers mix business trips with personal vacations has reinvigorated the industry; and
*MICE – in-person MICE events have returned in full force.
