Enterprise journey is on the up and up – and up – with file spending predicted for 2024 and a gradual improve anticipated within the coming years, based on the International Enterprise Journey Affiliation.
The affiliation’s 2024 Enterprise Journey Index Outlook, launched Monday on the GBTA Conference in Atlanta, predicts spending will attain $1.48 trillion by the tip of this yr – up from the prior file of $1.43 trillion in 2019.
And the expansion is projected to proceed yearly, with enterprise journey spending projected to surpass $2.0 trillion by 2028. The report is predicated on knowledge from 72 nations throughout 44 industries. It additionally consists of outcomes of a survey of 4,100 enterprise vacationers from 28 markets across the globe to offer insights on journey frequency, preferences, company card use and extra.
“We’re witnessing the anticipated rebound within the sector, reflecting the resilience and flexibility of companies and the worth of enterprise journey worldwide,” mentioned Suzanne Neufang, CEO of GBTA, who shared onstage at GBTA that the info isn’t adjusted for inflation.
The affiliation mentioned the anticipated, continued rise over the subsequent few years illustrates a sturdy path ahead for the enterprise journey business because of “relative stability” throughout the worldwide economic system, the remnants of pent-up demand and a return to pre-pandemic enterprise journey habits.
However Neufang cautioned, “We should stay vigilant and adaptive to potential headwinds on this interval of stabilization, as components corresponding to altering financial circumstances, technological developments and sustainability developments will even form the sector forward.”
The up to date predictions come on the heels of years of conflicting outlooks within the wake of the COVID-19 pandemic – and even exceeds expectations set in 2023.
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Final yr, GBTA predicted international spending on enterprise journey would attain $1.4 trillion this yr – barely beneath right now’s estimate – and $1.8 trillion in 2027, whereas now the prediction for that yr is increased – $1.9 trillion.
Again in 2022, the affiliation was far more cautious, voicing concern over inflation, elevated power costs and extra. On the time, the group predicted international enterprise journey spending wouldn’t exceed 2019’s pre-pandemic file ranges till 2026.
Asia Pacific leads enterprise journey spending, development
In GBTA’s regional evaluation, Asia Pacific will come out on prime as the most important spender on enterprise journey this yr, accounting for greater than 41% of the worldwide spend in 2024. North America is predicted to be second, making up 26.7% of world spend, with Europe a detailed third, accounting for 26.4%. Latin America is predicted to account for 3.6% and the Center East, 2%.
Digital wallets on the rise
Onstage at GBTA Monday, Neufang was joined by Veronica Fernandez, senior vice chairman and head of North America for Visa Business Options. The pair touched on plenty of subjects in terms of the way forward for enterprise journey, together with the evolution of digital parts in journey.
“The acceleration of all issues digital has created alternatives for know-how to anticipate new buyer
expectations and allow seamless, safe and versatile enterprise journey experiences,” Fernandez mentioned within the report’s govt abstract. “The whole lot from
digital ticketing to digital playing cards designed for enterprise journey has been reimagined to satisfy clients’
wants in a digital-first world.”
Primarily based on the outcomes of the traveler survey, the report states that greater than half of enterprise vacationers have their company bank card loaded in a cell pockets. However it varies by area, with the best adoption in Asia Pacific, the place 69% of respondents mentioned they use their company card in a digital pockets.
“I believe it’s the best way of the longer term, we’re going to see far more of it,” Fernandez mentioned.
Extra analysis launched at GBTA
Additionally Monday international journey know-how firm Travelport launched the outcomes of its “2024 State of Fashionable Retailing” survey Monday, which discovered 58% of respondents report feeling overwhelmed by the variety of decisions throughout the reserving course of whereas procuring instantly from suppliers.
“Regardless of journey suppliers favoring direct-to-consumer connections, the sheer quantity of choices is overwhelming to vacationers, making them much less assured of their reserving decisions,” mentioned Jen Catto, chief advertising officer at Travelport.
The analysis was primarily based on responses from 1,659 shoppers from the USA, South Africa, Germany and the UK. All individuals had taken at the least one flight for enterprise or pleasure within the prior 12 months.
Travelport mentioned it estimates air journey choices have elevated from 500 economic system and enterprise choices open for reserving in 2010 to greater than 10,000 choices in 2024 between economic system, economic system plus, flexi-family, enterprise, top quality and different choices, marking a 1,900% rise.
“Our analysis discovered that as a substitute of feeling excited after reserving a visit, most vacationers are left feeling anxious, questioning in the event that they acquired the perfect deal,” Catto mentioned.
“For the journey business, this alerts a rising want and alternative for journey businesses. Their experience compared procuring aids vacationers in confidently reserving the best choice, primarily based on their private preferences.”
