The Global Business Travel Association (GBTA) projects that global business travel spending will reach an all-time high of $1.48 trillion by the end of 2024, surpassing pre-pandemic levels for the first time. Despite business travel volumes not yet returning to 2019 levels, spending is up, particularly for long-haul flights. The association predicts that global business travel spending will exceed $2 trillion by 2028, with an annual compound growth rate of 7% between 2025 and 2028. Recovery in business travel varies by sector and region, with tech companies slower to return, while sectors such as insurance, finance, and consultancies are traveling about as frequently as in 2019.
Small- and medium-sized businesses have seen a broad increase in travel above 2019 levels, with regions like Asia Pacific and Western Europe experiencing significant growth. Interestingly, patterns in business travel have shifted, with longer trips with multiple meetings becoming more common while day trips are less frequent. In terms of election year policy priorities for business travel, GBTA is pushing for sustainability solutions to help the industry decarbonize and is advocating for improved passenger facilitation, such as aligning on technology requirements for smoother travel experiences.
The energy that comes from face-to-face meetings is seen as a critical factor in driving bottom-line gains for companies, according to Suzanne Neufang, CEO of GBTA. Neufang, who took over as CEO in February 2021, emphasizes the importance of in-person meetings despite the rise of virtual meetings. GBTA’s membership has grown to close to 9,000 members, with rapid growth in the Asia Pacific region. The organization is focused on advocating for government support to help the travel industry decarbonize and addressing issues like visas, border crossings, and technology requirements for smoother travel experiences.
In terms of stock index performance, the airline sector within the ST200 index has seen fluctuations year-to-date. The ST200 combines the financial performance of nearly 200 travel companies worth more than a trillion dollars. The index includes publicly traded companies across global markets, including network carriers, low-cost carriers, and related companies. The performance of airline sector stocks within the ST200 reflects the changing landscape of the travel industry and the ongoing recovery of the business travel sector in particular. Despite challenges faced by the industry, the data suggests a positive trajectory for global business travel spending in the coming years.
