Business travel industry anticipates a strong but challenging 2024

Technological advancements, including artificial intelligence, were cited by 19% of all respondents as a top concern, but figures differed between travel suppliers (27%) and travel buyers (13%).

The latest Global Business Travel Association PollGlobal industry professionals report covers wide-range of related issues like the business strength in travel numbers, outlook on potential risks ahead and how travel policies are evolving to meet the needs of a remote and hybrid workforce.

The global business travel industry has put the pandemic behind it and is riding a wave of momentum this year. A majority of travel buyers report increase in bookings and spending for 2023 and expect this year-over-year growth trend to continue as they also prioritize sustainable travel in their organizations. Nearly 60% of travel buyers expect more travel in the coming year, with two-thirds anticipating increases in business travel spending.

Industry professionals also expect challenges ahead. However, the caution against rising travel costs, overall economic uncertainties, lagging corporate budgets and travel disruptions. And almost half of travel buyers say the adoption of remote and hybrid workplace models has prompted them to revamp their employee travel policies and programs.

This is according to the latest business travel outlook poll conducted by the Global Business Travel Association (GBTA) featuring insights from global travel buyers, suppliers and other industry stakeholders on the current state of business travel and expectations for 2024.

Over 700 business travel professionals from 41 countries participated in the 33rd poll in GBTA’s long-running series.

“The business travel industry has ushered in a new chapter and moved beyond the pandemic. As companies and travelers continue to embrace the vital role of in-person connection for business, there are strong indicators for continued growth in travel volume and spending in 2024. This bodes well for the future of our industry and its professionals – even as we navigate new challenges of travel for work, continue to advocate for sustainable options, and evolve business travel programs so they’re fit for purpose,” said Suzanne Neufang, CEO of GBTA.

The momentum is expected to continue in 2024. Most travel buyers expect their company’s business travel spending and volume to increase in 2024 compared to 2023. Additionally, two-thirds of buyers (67%) expect their company’s travel spend to increase in 2024 versus 2023, while only 11% expect their spending will be lower. (This is consistent with GBTA’s October 2023 poll.)

Goodbye to pandemic considerations: Over half of respondents (57%) feel it is no longer relevant to compare industry performance for 2024 against 2019 pre-pandemic levels. However, one third (32%) maintain the comparison still has relevancy for the coming year. Additionally, when asked about top industry issues anticipated for 2024, pandemic concerns landed at the bottom of the list, cited by only 1% of those surveyed.

Potential challenges on the horizon: Industry stakeholders report their top 2024 concerns include the rising cost of travel (66%), overall economic concerns (46%), company budgets not keeping pace (42%), travel disruptions (32%) and geo-political concerns (22%).

Climate impact and sustainability was cited as a top concern for 2024 by 19% of respondents overall − but for European respondents, the figure is 41% versus 12% in North America. Additionally, technological advancements, including artificial intelligence, were cited by 19% of all respondents as a top concern, but figures differed between travel suppliers (27%) and travel buyers (13%).

Corporate (buy-side) travel teams expect status quo on staffing levels. Three quarters of travel buyers (76%) do not expect to increase the size of their internal travel in 2024, while nearly one in six (14%) expect to add staff. Almost half of suppliers (46%), however, project an increase in staffing levels at their company in 2024.

Top program areas that are being addressed, which are related to remote/hybrid employees, include types of meetings allowed for travel (40%) and frequency of travel to an office (32%), as well as types of transportation (26%), per diems (22%) and accommodations (20%) that is permissible and can be reimbursed. However, four in 10 (40%) respondents saidthey do not currently plan to alter their travel program related to remote / hybrid employees.

When it comes to economic impact, 27% report their company’s travel program costs are significantly or somewhat higher to accommodate hybrid / remote employees. Over one-third (37%) report no notable change in costs.

When asked how business travel will likely be allocated in 2024 in their company, travel buyers cite sales / account management meetings (36%, external conferences and industry events (20%), and internal meetings with colleagues (20%) at the top of the list.

Rounding out the list were service trips (9%, down from 14% in the GBTA poll from 12 months ago), employee training and development (7%), and supplier meetings (6%), and other types of business travel (5%).