Record-breaking business travel levels reported by World Tourism Organisation (WTTC)
In a significant shift, environmental protection is gaining prominence in sustainable business travel practices, as more companies adopt stricter guidelines to minimise their carbon footprint. This trend is not limited to one region, as the global business travel sector is experiencing a resurgence.
According to the World Travel & Tourism Council (WTTC), the business travel sector is projected to exceed its pre-pandemic revenue by 6.2% in 2024, reaching an unprecedented value of around 1.4 trillion euros. This forecast contrasts with more cautious expectations from some German industry associations, such as the Association of German Travel Management (ADTM), which estimates business travel expenditure at only 46 billion euros.
The WTTC attributes the comeback of business travel to the importance of face-to-face meetings for securing business deals. Julia Simpson, President of the WTTC, emphasises this point, stating, "The value of face-to-face interactions cannot be underestimated in the business world."
China, in particular, has recorded a strong increase in corporate travel expenditure, with business travel expenditure rising by 13.1% compared to 2019. Singapore, China, and Japan dominate the APAC region in business travel, while Europe, led by Germany, the United Kingdom, Spain, and Italy, is expected to be the largest market participant globally.
However, the recovery varies across regions. Düsseldorf Airport, Germany's fourth-largest airport, currently has business flight numbers at only about 50% of the pre-pandemic level. This discrepancy could be due to the focus of the WTTA on turnover rather than pure booking numbers, with increased prices playing a role.
To reach the WTTA's predicted figure of 80 billion euros for Germany, booking numbers would also have to significantly exceed the 2019 values. The USA is expected to be responsible for 30% of all global business travel expenditure in 2024, with spending on business travel in 2024 being 13.4% higher than the record level of 2019.
As the business travel sector recovers, many providers are shifting their focus towards the growing segment of leisure travelers due to the sluggish development in business travel. This shift is evident in the leisure travel sector, which showed a decline of only 2.9% in 2023 and is growing more moderately compared to the business travel sector.
In light of these developments, it appears that the business travel sector is on a steady path to recovery, with environmental concerns and the importance of face-to-face meetings driving this resurgence. The World Tourism Association (WTTA) predicts a record high for business travel in 2024, signalling a promising future for the industry.
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