The global business travel industry has overcome the pandemic and is riding a wave of momentum into early 2024. The majority of travel buyers are reporting an increase in their bookings and spending in 2023, and we expect this year-over-year growth trend to continue. We are also prioritizing sustainable travel within our organization. Almost 60% of travel buyers expect an increase in travel next year, and two-thirds expect an increase in business spending. But industry experts also foresee challenges ahead, citing rising travel costs, overall economic uncertainty, delays in corporate budgets, and travel disruptions as top concerns. Additionally, nearly half of travel buyers say the introduction of remote and hybrid workplace models has forced them to review their employee travel policies and programs.
This is according to the latest Business Travel Outlook poll conducted by the Global Business Travel Association (GBTA), which collects feedback from travel buyers, suppliers and other industry participants around the world on the current state of business travel and their expectations for 2024. Insights are summarized. Forty-one countries participated in the 33rd round of voting in the GBTA's long-running series.
The business travel industry has entered a new chapter and moved beyond the pandemic. There are strong indicators that travel volume and spending will continue to increase in 2024 as businesses and travelers continue to embrace the critical role of in-person connections in business. This bodes well for the future of our industry and its professionals, even as we navigate challenges. As we take on the new challenge of 'travel for work', we continue to advocate for sustainable options and evolve our travel programs to fit your purpose. GBTA CEO Suzanne Neufan.
Below are some of the key findings from the January 2024 GBTA poll.
Current state of the business travel industry
- Travel volume and spending increased year on year. Eight in 10 (83%) of travel buyers surveyed are significantly (31%), moderately (37%), or slightly less likely to book global business travel in 2023 compared to 2022. (15%) answered that it had increased. The story is similar for travel spending. 84% of buyers said their travel spending increased significantly (33%), moderately (38%), or slightly (13%) over the same period.
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The momentum is expected to continue into 2024.. Most travel buyers expect their company's business travel spending and travel volume to increase in his 2024 compared to his 2023. Six in 10 buyers (59%) expect their company's business travel to increase in 2024 compared to 2023, but only 6 in 10 (59%) expect their employees to increase was only 11% of his. At the regional level, more North American travel buyers (66%) expect their employee travel to increase in 2024 compared to European travelers (37%).
Additionally, two-thirds (67%) of buyers expect their company's travel spending to increase in 2024 compared to 2023, while only 11% expect their spending to decrease. was. (This is consistent with his October 2023 poll of the GBTA.) - Goodbye pandemic considerations in bidding. More than half of respondents (57%) feel that it is no longer meaningful to compare industry performance in 2024 to their 2019 pre-pandemic levels. However, a third (32%) think this comparison will still be relevant next year. Furthermore, when asked about the major issues for the industry expected in 2024, concerns about the pandemic were at the bottom of the list, cited by only 1% of those surveyed.
Future considerations and concerns for the industry
- Potential challenges are at hand. Industry participants cite rising travel costs (66%), overall economic concerns (46%), company budgets not keeping up (42%), and travel disruptions (42%) as their top concerns for 2024. 32%) and geopolitical concerns (22%). ). Climate impact and sustainability were cited by 19% of all respondents as their top concern for 2024. However, for European respondents, this number is 41%, compared to 12% for North America. Additionally, technological advancements, including artificial intelligence, are cited as a top concern by 19% of all respondents, although the numbers vary between travel agents (27%) and travel buyers (13%) .
- Barriers to attracting and retaining industry talent. When asked to rank the top five barriers to a diverse and robust workforce in 2024, respondents ranked unattractive pay and benefits (53%); 48% cited a lack of qualified candidates (48%) and a lack of organizational investment in retaining and developing talent (40%). %), lack of attractive jobs (39%), and need to hire and train job seekers in new industries (36%).
- Corporate (buy-side) travel teams expect staffing levels to remain the same. Three-quarters (76%) of travel buyers don’t expect domestic travel to increase in size in 2024, but nearly one in six (14%) expect to add staff doing. However, almost half (46%) of suppliers expect their company's staffing levels to increase in 2024.
How company trips and travel programs are evolving
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How hybrid/remote work is impacting employee travel programs and costs. Most industry respondents (62%) say their companies have some form of hybrid model that allows them to work from both the office and home. Almost half (48%) say they have revised or plan to revise their company's travel policies/programs due to remote/hybrid working. Of these, 27% have already revised their corporate travel policies/programs, and 21% said they are currently working on them.
The company's top program areas related to remote/hybrid employees include types of meetings for which travel is permitted (40%), frequency of office travel (32%), and types of transportation ( 26%) and per diem (22%). %) and allowable and refundable accommodation costs (20%). However, 4 in 10 (40%) of respondents say they currently have no plans to make changes to travel programs related to remote/hybrid employees. When it comes to financial impact, 27% say the cost of their company's travel programs has increased significantly or slightly. Hybrid/Remote Employees. More than one in three (37%) reported no noticeable change in costs.
- Why are we traveling now? When asked how their companies are likely to allocate business travel in 2024, travel buyers cite sales/account management meetings (36%, up from 28% in GBTA's January 2023 survey) increase). External conferences and industry events (20%) and internal meetings with colleagues (20%) top the list. Rounding out the list are service travel (9%, down from 14% in the GBTA survey 12 months ago), employee training and development (7%), supplier meetings (6%), and other type of business trip (5%). %).
Methodology: The poll, conducted from January 9 to 22, 2024, received 707 responses from travel buyers, suppliers, and other industry professionals in North America, Europe, Latin America, and Asia Pacific. .
The results and key highlights of the 33rd annual poll and the full GBTA Business Travel Industry Outlook poll can be found here.
