NEW YORK (Reuters) – Global business travel spending in 2023 recovered to pre-pandemic levels in North America, Latin America, the Middle East and Africa as companies resumed in-person gatherings and conferences, according to report released Monday by an industry association.
However, the Global Business Travel Association’s annual report also said business travel spending adjusted for inflation remains below 2019 levels and a full global recovery faces increased headwinds from geopolitical conflicts and a slower travel rebound in major markets like China.
Global business travel spending as a whole in 2023 increased 30% to $1.34 trillion from the previous year, but it was still about 7% below pre-pandemic levels, according to the report.
“We are now expecting to see continued solid spend growth in business travel, but at a more normal, moderate level as the world economies return to a more traditional cycle,” said Suzanne Neufang, the association’s chief executive officer.
The association predicts that spending will reach $1.48 trillion by the end of 2024, surpassing the pre-pandemic record of $1.43 trillion.
When adjusted for inflation, global business travel spending was 22% lower in 2023 compared to 2019 levels.
The Asia-Pacific region was the fastest-growing region in 2023 led by a rise in spending in South Korea and India, which increased 27% and 22% respectively year-over-year.
However, the region still lagged a full recovery as business travel spending in China increased 9% year-over-year, but still trails behind pre-pandemic levels.
Spending recovered to pre-pandemic levels in North America, Latin America, the Middle East and Africa.
Despite surpassing the pre-pandemic record of $346.8 billion, the growth in spending in North America decelerated to 25% year-over-year down from 73% the year prior.
Similarly, in Western Europe business travel spending increased 33% in 2023 compared to 109% in 2022 when spending surged as governments loosened travel restrictions. The region’s spending was 6% below pre-pandemic levels.
Source: Economy - investing.com
