GBTA Report: Surge in Group Travel as Associations and Businesses Schedule Meetings
Group travel is surging as associations and businesses schedule meetings that were postponed during the pandemic, and hotel event planners are struggling to keep up with the demand. However, business travel is not expected to make a full recovery until 2024, according to the Global Business Travel Association (GBTA), which found in a survey that US companies are only traveling at 77% of 2019 levels and spending 68% of what they spent on pre-pandemic trips.
The GBTA will be releasing the next BTI Outlook on August 14, 2023, at their annual Convention in Dallas. The travel association released its last business travel index, on August 22, 2022, which provided a detailed analysis of business travel in 2021 with projections for 2022 and beyond. The report shows that global business travel spending rebounded 14% in 2021 to $754 billion, after declining 53.8% in 2020 to $661 billion.
The report forecasts a year-over-year surge of 38% in 2022, bringing global business travel spending back to over $1 trillion, as recovery and pent-up demand kick into a higher gear. Recovery will continue into 2023, with global spending rising 23% year-over-year as even more international and group travel comes back online.
By 2024, global business travel is expected to have made a full recovery, ending the year at $1.48 trillion, just above the 2019 pre-pandemic spend of $1.4 trillion. In 2025, global business travel growth is expected to slow to 4.3%, ending the year at $1.5 trillion.
“Of any year we’ve issued the BTI Outlook forecast, this one was the most anticipated and it’s no surprise,” said Suzanne Neufang, CEO for GBTA. “We’re pleased to see that our industry is on track for full recovery by 2024.”
However, the report also warns of potential risks and challenges for the recovery, such as persistent COVID-related threats and disruptions, supply chain strains, labor shortages, rising inflation, increased costs, and lagging recovery in Asian markets. The report also notes the possible impacts of emerging factors such as remote working models, sustainability practices and policies, and traveler preferences and expectations.
Sources: AirGuide Business airguide.info, msn.com, gbta.org, hospitalitynet.org, hotelnewsresource.com