International business travel spending looks set to rise by more than a quarter this year and reach two-thirds of pre-pandemic levels by 2022, according to a new World Travel & Tourism Council (WTTC) report.
According to WTTC data, this year and the following year show which regions worldwide are leading the resurgence in business travel, led by the Middle East, where business spending is expected to increase by 49 percent this year. Much stronger than leisure spending at 36 percent, followed by a 32 percent increase next year.
A 32 percent increase is expected this year in Business spending in the Asia Pacific, whereas Europe is expected to see a rise of 36 percent this year and a 28 percent increase in 2022. Just ahead of South America, Africa will see spending rise by 36 percent this year, marginally more substantial than leisure spending, followed by a 23 percent increase next year. South America’s business travel spending is expected to rise by 14 percent this year and 35 percent in 2022.
Global travel-related spending declined significantly from 2019 to 2020 due to COVID-19 and the ongoing restrictions to international mobility. This report draws on research, analysis, and interviews with Travel and Tourism business leaders. The report recommends that businesses improve digital services, adjust revenue models, and expand the geographical focus. Collaboration and partnerships across the private and public sectors and nurturing new relationships are critical to restoring business travel.
According to WTTC’s report, significant changes have taken place over the past 18 months, particularly in demand, supply, and the operating environment, all of which affect business travel. Corporate policies continue to influence business travel demand following international travel restrictions, and business travel demand is slower to recover than leisure travel.
Business travel will bounce back, but the uneven nature of its recovery will have ramifications across the global travel & tourism industry, making public-private partnerships even more valuable over the next few years.