It’s no surprise to anyone that business travel took a nosedive in early 2020. Over the next four years, predictions for business travel recovery have risen and fallen in their optimism. So, what do the latest predictions say for 2025?
In early 2020, shutdowns made business travel impossible. For many companies, it wouldn’t be until later in the year, or even the next year, until business travel resumed. Even then, it was only on a small scale. Soon, though, many claimed that society was “back to normal.” That said, business travel spending wasn’t exactly “back to normal” along with it.
Over the last four years, we’ve reported on post-pandemic changing business travel trends, the increasing price of business travel and more. How does the business Travel landscape stand today, though, and what can you expect for 2025?
Here’s what the experts are saying, along with the next big things in business travel to keep on your radar in the year ahead.
Business Travel is Back: Full Business Travel Recovery Expected
In 2022, the Global Business Travel Association (GBTA) predicted that full business travel recovery would occur in 2025. So, was the association correct?
In a way, yes. As of a GBTA report released in July, we’re already there in terms of global business travel spending. As a press release said, “global business travel spending will reach $1.48 trillion USD by the end of the year, an increase on 2019 spending which was a previous record at $1.43 trillion.”
Additionally, by 2028, GBTA predicted spending to reach $2.0 trillion.
This increase in spending can be seen via a report from Deloitte as well.
Also in July, Deloitte reported that 58% of surveyed Travel Managers said they expected their companies’ travel spend to increase in 2025. They reported travel spending rising up to 15% each year. Factors driving this increased spending include attendance at conferences and trade shows and client-related travel. The latter remains the top driver in trip frequency.
That said, not everyone is quite so optimistic. Earlier in the year, the U.S. Travel Association said that the United States travel industry would not return to pre-pandemic levels of visitor spending until at least 2026 due to factors such as global economic downturns, even though visitor numbers would reach pre-pandemic levels in 2025.
However, when looking at other countries, as Business Travel USA reported, the story isn’t always the same. France and Spain, for example, have “bounded ahead” in their international travel recovery.
Expected Changes Accompanying the Business Travel Recovery
Some believe a full business travel recovery is expected. However, the business travel of 2025 might not look like the business travel of 2019 or 2020.
For example, Hotel Dive covered the Morning Consult’s Travel is Back in Business report, released in May. The publication noted that younger Travelers are driving business travel growth, especially Gen Z.
The report also found that hotels continue to win in the business travel recovery. Hotels draw a large number of business Travelers (even though rentals still attract some business Travelers). As a result, some hotels are changing tactics and how they approach business Travelers. For example, the Hilton for Business program targets SMEs.
CoStar called 2025 a “pivotal year” for hotels. While the publication did note that hotels and short-term rentals do still compete for business Traveler dollars, that competition isn’t truly a big threat. Experts said that, at the end of the day, business Travelers still enjoy all of the key amenities that come with a traditional hotel stay. These include room service and the ability to book via a business account.
We often cover the technology associated with business travel. That’s a topic that GBTA said Travelers and travel professionals will need to pay special attention to in the years ahead. In an August release, the organization said this topic will be of particular interest to Travel Managers and similar professionals.
The GBTA release reported on a tech-related business travel survey. It said, “Based on a survey of business travel professionals in North America and Europe, the report reveals that while 88% of travel management company respondents, 74% of suppliers, and 59% of travel buyers generally feel their organization does a good job with technology, a significant opportunity exists in actively integrating advanced technologies, such as artificial intelligence (AI) and blockchain into their travel programs. In addition, while travel program spending on technology is expected to largely remain flat, most suppliers and TMC professionals say their company is ramping up technology investment in the year ahead.”
Meanwhile, a report from Skift looked at 2025 travel megatrends. It forecasts in 2025, it’s not just salespeople or executives who are the primary business Travelers. Due to the rise and continuation of remote work and the resulting growing need for remote workers to travel for in-person company-wide meetings or team-building sessions, every employee is a business Traveler.
As such, Skift says by 2025, the volume of work trips by all employees will rival 2019’s record highs. Additionally, Skift predicts in 2025, a new type of tour operator will strive for companies’ business. This new operator will offer organizations exclusive company retreats that will ultimately help to attract talent.
Are You Ready for 2025?
Are you ready for the full business travel recovery? Business travel spending is increasing. Business travel is more and more a part of attracting and retaining talent. You can’t afford to let your business travel policies and processes go ignored or unnoticed.
JTB Business Travel can help you create a business travel policy that puts both profits and people first, ensuring every trip accomplishes your goals while keeping Travelers safe, happy and productive.
