The global business travel industry is a powerhouse, with billions of dollars being spent annually. Despite the setbacks caused by the pandemic, the Global Business Travel Association (GBTA) predicts that business travel spending will surpass pre-pandemic levels by 2024 and continue to grow to $1.8 trillion by 2027.
The top countries for business travel spending are China and the United States, with industrial economies dominating the list. Interestingly, Russia is the only country in the top ten for GDP that doesn’t appear on the list of top business travel spenders.
Lodging is the largest expense for corporate travel, followed by meals and airfare. While leisure travel spending outweighs business travel spending, airlines actually earn a significant portion of their revenue from business travelers, who are willing to pay higher rates for upgraded comfort.
Business travelers are also more likely to book last-minute and fly first class, contributing significantly to airline profits. Research shows that 33% of international business travel flights and 13% of domestic business travel flights are in premium class.
Overall, business travel spending is a critical component of the travel industry, injecting money into local economies, improving productivity, and driving profits. As the world continues to recover from the pandemic, the resurgence of business travel will play a key role in economic growth and global connectivity.