Business travel is set to recover this year, surpassing pre-pandemic levels and hitting a record $1.5 trillion.
The pandemic made corporate travel challenging, as virtual meetings replaced in-person ones. Now, business leaders are focusing on face-to-face interactions again, aiming to exceed 2019 levels by 6.2 percent, VisaGuide.World reports.
Last year, leisure travel was just 2.9 percent behind the 2019 peak, while business travel struggled, remaining 5.4 percent behind.
A new report from the World Travel & Tourism Council (WTTC) shows that business travel spending in the United States marked 30 percent of the global total in 2019. However, data now disclose that it is forecasted to reach US$472 billion this year, 13.4 percent above the country’s 2019 record.
As for the second-largest market for business travel, China, spending is expected to grow by 13.1 percent compared to 2019, reaching nearly $211 billion. Meanwhile, in Germany, the third-largest market, spending will likely hit $87.5 billion, just under one percent above its 2019 peak.
UK & France’s Business Travel Expected to Contribute Billions to Their Economies
Two other destinations that are also set to make contributions are the United Kingdom and France, with business travel projected to inject $84.1 billion and $42.1 billion into their economies, respectively.
In this regard, Julia Simpson, WTTC President & CEO, noted that major economies like the US, China, and Germany are on track to reach record levels this year. While virtual meetings helped businesses stay connected during the pandemic, the report highlights that face-to-face interactions are now preferred.
We always said travel was a force for good, driving economic and societal progress. But when travel stopped, GDP plummeted, unemployment soared, mental health issues escalated, and the world became a less tolerant place. The benefits of travel are now no longer in doubt. Companies around the world – many for the first time – are investing in managed business travel to grow their businesses and create winning cultures.
Previous data from the WTTC also revealed that the travel and tourism sector is on track for a historic high this year, with its global economic contribution expected to reach $11.1 trillion. By 2034, this sector could help grow the global economy to $16 trillion and create 449 million jobs. Currently, it supports nearly 348 million jobs worldwide, adding $770 billion compared to previous records.