Nearly 60 percent of travel buyers expect more travel in the coming year, with two-thirds anticipating increases in business travel spending, according to the latest Business Travel Outlook Poll conducted by the Global Business Travel Association. However, industry professionals also expect challenges ahead, citing rising travel costs, overall economic uncertainties, lagging corporate budgets and travel disruptions among their top concerns. And almost half of travel buyers say the adoption of remote and hybrid workplace models has prompted them to revamp their employee travel policies and programs.
More than 700 business travel professionals from 41 countries participated in this 33rd poll in GBTA’s series.
“The business travel industry has ushered in a new chapter and moved beyond the pandemic," GBTA CEO Suzanne Neufang said in a statement. "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 programs so they’re fit for purpose.”
Current State of the Business Travel Industry
Eight in 10 (83 percent) travel buyers surveyed say their 2023 global business travel bookings increased—whether significantly (31 percent), moderately (37 percent), or slightly (15 percent)—compared to 2022. The story is similar for travel spending with 84 percent of buyers reporting their travel spending increased significantly (33 percent), moderately (38 percent), or slightly (13 percent) over the same period.
Momentum is expected to continue in 2024. Most travel buyers expect their company’s business travel spending and volume to increase in 2024 compared to 2023. Six in 10 (59 percent) buyers expect the number of business trips will increase at their company in 2024 compared to 2023, while only 11 percent expect employees will take fewer business trips in 2024. At a regional level, more travel buyers in North America (66 percent) expect an increase in employee travel in 2024 compared to European buyers (37 percent).
Additionally, two-thirds of buyers (67 percent) expect their company’s travel spend to increase in 2024 versus 2023, while only 11 percent expect their spending will be lower. (This is consistent with GBTA’s October 2023 poll.)
More than half of respondents (57 percent) feel it is no longer relevant to compare industry performance for 2024 against 2019 pre-pandemic levels. However, one third (32 percent) 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 percent of those surveyed.
Considerations and Concerns Ahead for the Industry
Industry stakeholders report their top 2024 concerns include the rising cost of travel (66 percent), overall economic concerns (46 percent), company budgets not keeping pace (42 percent), travel disruptions (32 percent) and geo-political concerns (22 percent).
Climate impact and sustainability was cited as a top concern for 2024 by 19 percent of respondents overall—but for European respondents, the figure is 41 percent versus 12 percent in North America. Additionally, technological advancements, including artificial intelligence, were cited by 19 percent of all respondents as a top concern, but figures differed between travel suppliers (27 percent) and travel buyers (13 percent).
When asked to rank five barriers to achieving a diverse, robust workforce in 2024, respondents say unappealing salary levels and benefits (53 percent), lack of qualified and/or experienced candidates (48 percent), lack of organizational investment in retaining and developing talent (40 percent), lack of attractive job roles (39 percent) and required hiring and training of new industry job seekers (36 percent).
Corporate (buy-side) travel teams expect status quo on staffing levels. Three quarters of travel buyers (76 percent) do not expect to increase the size of their internal travel in 2024, while nearly one in six (14 percent) expect to add staff. Almost half of suppliers (46 percent), however, project an increase in staffing levels at their company in 2024.
How Employee Travel and Travel Programs are Evolving
Hybrid and remote work is impacting employee travel programs and costs. Most industry respondents (62 percent) say their company has a hybrid model, allowing both work from the office and home in some form. Almost half (48 percent) say they have revised or plan to revise their company’s business travel policy/program because of remote/hybrid working. Among those, 27 percent have already revised their corporate travel policy/program, while 21 percent say they are working on it.
Top program areas they are addressing related to remote/hybrid employees include types of meetings allowed for travel (40 percent) and frequency of travel to an office (32 percent), as well as types of transportation (26 percent), per diems (22 percent) and accommodations (20 percent) that is permissible and can be reimbursed. However, four in 10 (40 percent) respondents say they do not currently plan to alter their travel program related to remote / hybrid employees.
When it comes to economic impact, 27 percent report their company’s travel program costs are significantly or somewhat higher to accommodate hybrid / remote employees. Over one-third (37 percent) report no notable change in costs.
When asked how business travel will likely be allocated in 2024 in their company, travel buyers cite sales / account management meetings (36 percent, up from 28 percent in the GBTA January 2023 poll); external conferences and industry events (20 percent), and internal meetings with colleagues (20 percent) at the top of the list. Rounding out the list were service trips (9 percent, down from 14 percent in the GBTA poll from 12 months ago), employee training and development (7 percent), and supplier meetings (6 percent), and other types of business travel (5 percent).