Global Business Travel Spending is Set to Grow 21% in 2021 as Per Trade Group Forecasts
Trade Group has forecast that by the end of the year 2024, business travel spending will reach about $14 trillion. This amount nearly equals the 2019 revenue peak of 1.43 trillion during the pre-pandemic times. According to the group, the forecast predicts a full recovery by the year 2025.
The business travel spending is predicted to undergo a growth of 2% this year around the world. The process is being boosted by the rollout of the COVID-19 vaccines across many countries. However, the growth will not be surpassing the pre-pandemic revenues until the middle of the decade. The report was released by a business travel association on Tuesday.
The collective spending on business travel is expected to rise to $842 billion by the end of 2021 as per the Global Business Travel Association or GBTA BTI Outlook. It dropped to 52% in 2020 to a staggering $694 billion. This was caused because of the onset of the pandemic across the globe.
The economy spent a decade through steady annual growth. Business travel is expected to have shown losses in 2020 which amounted to ten times greater than the declines after the September 11, 2001, Twin Tower attacks, or the 2008 recession as by GBTA.
However, although there is an expectation of travel growth in 2021, there is widespread uncertainty around the vaccination progress. It is also being put under the light that President Joe Biden’s policies can affect the recovery of the economy.
Dave Hilfman, GBTA’s interim executive director said in a statement that the continued rollout of the vaccine will be central to recovery around the world and so will the decisions undertaken by the new Biden Administration that will include various global trade, border, and quarantine policies.
The growth is also expected by U.S. airlines. The group said that the businesses are likely to spend a lot more on travel which cannot be duplicated with online meetings such as sales calls and service trips.
The proportion of various companies’ global travel budgets spent on internal meetings is estimated to decline a sharp 6% as opposed to the previous year of 2019 according to the group.
By the end of the year 2024, business travel spending is projected to reach a whopping $1.4 trillion. This nearly equals the 2019 pre-pandemic revenue peak of 1.43 trillion as per forecasts made by the group. The recovery will be in full swing by the end of the year 2025.
The group also said various key developing economies in the Asia Pacific are going to be instrumental in driving global growth in business travel over the next decade.
The world went into lockdown following the virus outbreak. This was the reason that brought about extensive hiatus in business. However, many businesses went into complete shutdown and collectively, the global economy suffered extensive damage. It is a matter of time until the whole world starts functioning again.
Glenda Bozeman – Business and Services
Glenda Bozeman writes Business articles for industries that want to see their Google search rankings surge. Her articles have appeared in a number of sites. Her articles focus on enlightening with informative Services sector needs. She holds the degree of Masters in Business and Marketing. Before she started writing, she experimented with various professions: computer programming, assistant marker, and others. But her favorite job is writing that she is now doing full-time.
