Business travel set to exceed pre-pandemic levels, reaching $1.5 trillion in 2024: WTTC report, ET TravelWorld

<p>Picture used for representational purposes only.</p> — Picture used for representational purposes only.

The global business travel industry is on track to surpass pre-pandemic levels this year, hitting a record-breaking per cent 1.5 trillion, according to a new report from the World Travel & Tourism Council (WTTC). The “2024 Economic Impact Trends Report” highlights the significant recovery in corporate travel, which had lagged behind leisure travel since the onset of the pandemic.

While leisure travel bounced back more quickly, with a gap of just 2.9 per cent from its 2019 peak, business travel struggled, remaining 5.4 per cent below 2019 levels last year. However, the renewed emphasis on face-to-face meetings in the corporate world has spurred a swift recovery. Business travel is now projected to surpass 2019 levels by 6.2 per cent in 2024, a turnaround that is happening faster than anticipated.

US and China Lead Global Business Travel Surge
The report points to the US and China, the world’s largest business travel markets, as key drivers of the recovery. In the US, which accounted for 30 per cent of global business travel in 2019, corporate travel spending is expected to reach per cent 472 billion this year, a 13.4 per cent increase over 2019’s record figures. China is forecast to see a 13.1 per cent growth in business travel spend, reaching nearly per cent 211 billion.

Other major markets are also showing strong performances. In Germany, the third-largest business travel market, spending is set to increase by just under 1 per cent, hitting per cent 87.5 billion. Meanwhile, the UK and France are both expected to break records, with business travel spending reaching per cent 84.1 billion and per cent 42.1 billion, respectively.

Asia Pacific drives global surge in international tourism with Australia leading the way

While international tourism in Asia Pacific (APAC) has not yet reached pre-pandemic levels, the region is demonstrating impressive year-on-year growth. Key markets such as China, Malaysia, Japan, Thailand, and Indonesia have seen double-digit increases in tourist arrivals, fueling a projected 19 per cent overall rise in international visits to APAC by the end of 2024. Oceania has also experienced a notable 10 per cent increase, with New Zealand and Australia emerging as major contributors to the growth.

Julia Simpson, President & CEO, WTTC, underscored the importance of business travel during the organization’s 24th Global Summit in Perth, Australia, stating, “After a challenging few years, business travel is not only back on track but recovering faster than we predicted. While virtual meetings were crucial during the pandemic, today’s report shows that business is better face-to-face.”The resurgence of business travel has been fueled by several factors, including the overall recovery of global economies. As the Travel & Tourism sector contributes more to global GDP, companies have reallocated funds to corporate travel, which had been significantly cut back during the pandemic.

Paul Abbott, CEO of American Express Global Business, highlighted the broader economic and social benefits of corporate travel: “When travel stopped, GDP plummeted, unemployment soared, and mental health issues escalated. The return of travel is a force for good, driving economic and societal progress.”

Another key trend supporting business travel’s recovery is the rise of “blended travel,” where professionals combine business trips with personal vacations, making corporate travel more appealing. The meetings, incentives, conferences, and exhibitions (MICE) industry has also seen a strong resurgence, as in-person events have resumed after pandemic-induced cancellations and postponements.