After a prolonged period of uncertainty and reduced activity, there are promising signs that business travel is on the path to recovery, albeit at a cautious pace.
Projections from the U.S. Travel Association suggest that business travel will reach 95% of its 2019 levels by the end of 2024, up from 89% in the previous year. This uptick could accelerate if the economy experiences a “soft landing,” characterised by easing inflation and interest rates, prompting large tech and financial services firms to increase travel activity.
London Heathrow has also seen a near 90% return in business passenger volume. Furthermore, American Express Global Business Travel (GBT) has observed an increase in travel among large global multinationals, particularly in the tech sector and professional services. AmEx GBT anticipates sales to rise by up to 9% this year, fueled by a rebound in business travel and the acquisition of Egencia, a corporate travel management platform.
However, while the outlook is positive, challenges remain. Video conferencing technology continues to provide a viable alternative for many meetings, impacting the need for in-person travel. Additionally, corporate travel managers face higher prices across the travel ecosystem, including airfares and hotel rates, which could affect travel budgets.
Moreover, factors such as the shift to remote work, corporate sustainability goals, and ongoing uncertainty could influence the extent of future business travel. Nevertheless, a strengthening economy and the gradual return to office-based work are encouraging larger corporations to resume travel activities.
As travel companies navigate these challenges, they remain cautiously optimistic about the recovery of business travel. By the end of 2024, there is hope that demand will approach normalized levels, signaling a positive trend for the industry.