Business travel industry expects a strong but challenging 2024

Key insights from the latest GBTA poll by 707 business travel professionals in 41 countries.

Remote/hybrid workplace models have prompted businesses to revamp their employee travel policies and programmes.
Remote/hybrid workplace models have prompted businesses to revamp their employee travel policies and programmes. Photo Credit: Adobe stock/Nuthawut

Global industry professionals report strength in business travel numbers, outlook on potential risks ahead, and how travel policies are evolving to meet the needs of a remote/hybrid workforce.

707 responses were received from travel buyers, suppliers and other industry professionals across North America, Europe, Latin America and Asia-Pacific for the poll fielded January 9-22, 2024. Most travel buyers report increases in bookings and spending for 2023 and expect this year-over-year growth trend to continue as they prioritise sustainable travel in their organisations.

“As companies and travelers continue to embrace the vital role of in-person connection for business, there are strong indicators for continued growth in travel volume and spending in 2024. This bodes well for the future of our industry and its professionals – even as we navigate new challenges of ‘travel for work,’ continue to advocate for sustainable options, and evolve business travel programmes so they’re fit for purpose,” said Suzanne Neufang, CEO, GBTA.

Highlights

· Eight in 10 (83%) travel buyers surveyed say their 2023 global business travel bookings increased – whether significantly (31%), moderately (37%), or slightly (15%) – versus 2022. The story is similar for travel spending with 84% of buyers reporting their travel spending increased significantly (33%), moderately (38%), or slightly (13%) over the same period.

· Most travel buyers expect their company’s business travel spending and volume to increase in 2024 compared to 2023. Six in 10 (59%) buyers expect the number of business trips will increase at their company in 2024 compared to 2023, while only 11% expect employees will take fewer business trips in 2024. At a regional level, more travel buyers in North America (66%) expect an increase in employee travel in 2024 compared to European buyers (37%).

· Additionally, two-thirds of buyers (67%) expect their company’s travel spend to increase in 2024 versus 2023, while only 11% expect their spending will be lower.

· Over half of respondents (57%) feel it is no longer relevant to compare industry performance for 2024 against 2019 pre-pandemic levels. However, one third (32%) maintain the comparison still has relevancy for the coming year. Additionally, when asked about top industry issues anticipated for 2024, pandemic concerns landed at the bottom of the list, cited by only 1% of those surveyed.

· Industry stakeholders report their top 2024 concerns include the rising cost of travel (66%), overall economic concerns (46%), company budgets not keeping pace (42%), travel disruptions (32%) and geo-political concerns (22%).

· Climate impact and sustainability was cited as a top concern for 2024 by 19% of respondents overall − but for European respondents, the figure is 41% versus 12% in North America.

· Technological advancements, including AI, were cited by 19% of all respondents as a top concern, but figures differed between travel suppliers (27%) and travel buyers (13%).

· When asked to rank five barriers to achieving a diverse, robust workforce in 2024, respondents ranked the following: unappealing salary levels and benefits (53%), lack of qualified / experienced candidates (48%), lack of organisational investment in retaining and developing talent (40%), lack of attractive job roles (39%) and required hiring and training of new industry job seekers (36%).

· Most industry respondents (62%) say their company has a hybrid model, allowing both work from the office and home in some form. Almost half (48%) say they have revised or plan to revise their company’s business travel policy/programme because of remote/hybrid working. Among those, 27% have already revised their corporate travel policy/programme, while 21% say they are working on it.

· When asked how business travel will likely be allocated in 2024 in their company, travel buyers cite sales/account management meetings (36%, up from 28% in the GBTA January 2023 poll); external conferences and industry events (20%), and internal meetings with colleagues (20%) at the top of the list.