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What does business travel in 2024 and beyond look like?
- Corporate travel is predicted to generate $1.48 trillion in spending in 2024. (GBTA)
- The business travel market is expected to hit $829.5 billion by 2027. (ReportLinker)
- 62% of CEOs expected their travel budgets to increase in 2024, compared to 2023. (TravelPerk)
- 61% of US companies expect to increase their business travel budgets in 2024. (TravelPerk)
- Mid-sized businesses (51%) with 201–2,000 employees were the most likely to increase their business travel spending in 2024, followed by large enterprises (50%) and SMBs (43%). (TravelPerk)
- The top reason for increasing travel budgets was to expand into new markets (47%). Other key factors included attending more conferences and events (45%) and growing headcount (39%). (TravelPerk)
- Environmental sustainability (27%) was cited as a reason for business travel budget cuts. (TravelPerk)
- Americans make more than 405 million business trips annually, equating to over 1 million business travellers each day. (Hotel Tech Report)
Corporate travellers are looking for purpose, perks, and personal growth
- Business travellers are booking longer, more ‘purposeful’ trips to make the most of the experience. (Advantage Travel Partnership)
- Business travellers are most excited about the following facilities:
- Hotel bars (51%)
- On-site fitness facilities (51%)
- Indoor/outdoor pools (48%)
- On-site relaxation facilities (46%)
- When asked what excites them most about business travel, employees highlighted (Booking.com):
- All-paid dining options (52%)
- Luxury accommodations (47%)
- Per diem allowances (34%)
- Premium benefits (33%)
- When travelling internationally, travellers report a strong impact on (Booking.com):
- Personal development (90%)
- Self-awareness (87%)
- Mental health (77%)
- Physical health (74%)
- Family/relationships (64%)
- Your travel planning windows will be shorter. You’ll look for tickets and accommodation closer to your departure date than you did before. Data from our own platform reveals that searches for trips less than 6 days away are now almost equal to searches for trips between 7 and 30 days away. Before the coronavirus pandemic, the vast majority of trips were searched for and planned 7 to 30 days in advance (TravelPerk).
- Rail travel will boom over air travel and is already leading the path to recovery. Our own data shows that 80% of domestic trips in Germany are being booked on trains (TravelPerk). Furthermore, nearly 50% of passengers now find reducing their carbon emissions and sustainability more important than they did before COVID-19 (GlobalData).
- Airfares could rise by as much as 54% in a post-pandemic world. This will be due to the growing need to keep planes at a higher standard of cleanliness than before, more contactless solutions, and 24-hour service at airports. Travel managers will therefore need to find ways to optimise their business travel spending and consider savings as a significant part of their company’s travel policy (BBC).
US business travel statistics: The cost of business travel
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- US business travel spending is predicted to reach $472 billion in 2024. (WTTC)
- Business travellers typically spend around $1,018 per trip. (PhotoAiD)
- It costs an average of $354.55 for domestic travel trips in most major American cities (including California and Massachusetts). (Forbes)
- Employees in the UK made 6.3 million international business trips in 2023. (Office of National Statistics)
- Accommodation accounts for the largest portion of a typical corporate travel budget at 34%, followed by meals at 20%, and flights ranging between 17% to 27%. (Hotel Tech Report)
- UK residents spend £5.16 billion abroad on business trips. (Finder)
- The latest research shows that business travellers to the UK spent £5 billion, representing 19% of all spend by inbound visitors. (Visit Britain)
- Business travellers to the UK generally stay for fewer nights than leisure travellers (5 nights vs. 8 nights), but they spend more than double per night (£209 vs. £101). (Visit Britain)
- 63% of business spending in the UK occurs in London. (Visit Britain)
- In 2024, Canadian business travel spending was predicted to reach $25.9 billion, representing an annual growth of 13.5%. (GBTA)
- Canadian business travellers spend an average of $884 per business trip. (GBTA)
- 55% of Canadian business travellers combine leisure travel with their business trips more than in 2019. (GBTA)
- The average cost of an international business trip is around $2,600. (Hotel Tech Report)
- The per diem rate for high-cost areas in the US is $319, while for non-high-cost areas, it's $225. (IRS)
The US is getting expensive, like Switzerland
- In 2024, New York ranked as the world's most expensive city for business travel, with an average daily cost of approximately $685. (Statista)
- Coming in second was Geneva, with an average spend of $700 per day, closely followed by Washington DC ($658) and Zurich ($617). (ECA International)
- In Asia, Hong Kong came in first as the most expensive city for business travellers, with the average daily spend coming in at $520. (ECA International)
- Three of the top five most expensive cities for business travel globally are in the United States; New York, San Francisco, and Washington DC. (ECA International)
- Zurich is the most expensive business travel destination in Europe, with Milan, Paris, and London trailing closely behind. (BTN)
The way we travel for business is changing
AI and sustainability are more than just trends
- Only 14% of buyers currently use AI in their travel programs, but this represents an 8-point increase from the previous year. (GBTA)
- 83% of executives reported increasing their AI budgets for 2024. (Skift)
- Only 10% of travellers prefer chatbots to support them when facing disruption. (TravelPerk)
- Over 70% of travellers are drawn to OTAs and providers that emphasise sustainable travel options. (GSTC)
- First and business-class bookings have fallen, while economy bookings rose by 7.69%. (Advantage Travel Partnership)
- Around 70% of employees are unaware of their company’s green policies for corporate travel. (Passport Photo Online)
- Roughly 90% of working professionals believe their company has prioritised sustainability. (Passport Photo Online)
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Why and how business travellers travel
Fewer day-return flights, more group travel and conferences
- In 2019, 19% of short-haul flights (under 2 hours) booked on the TravelPerk platform were day-return trips. By 2023, this figure had dropped to just 9%. (TravelPerk)
- The average business traveller takes 6.8 business trips per year. (Hotel Tech Report)
- Interest in group and incentive travel to resorts and all-inclusive locations is on the rise. In the first half of 2023, group bookings at Hilton all-inclusive resorts saw double-digit growth compared to the previous year. (Hilton)
- Conferences, trade shows, and exhibitions are driving travel growth, with more than 60% of business travellers expecting to attend at least one in 2024. (Deloitte)
- One in five frequent travellers travel for sales or project work more than once a month. (Deloitte)
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TravelPerk can help you organize group travel for events with ease — and take advantage of great group travel discounts!
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Business travel industry trends and impact
There’s a strong link between corporate travel and business growth
- The majority of business travel decision-makers believe that higher travel budgets lead to increased company revenue (64%) and profitability (59%). (TravelPerk)
- For SMBs and mid-sized companies, every dollar spent on business travel generates an average of $12 in revenue, largely driven by new customer acquisition. (TravelPerk)
- 34% of C-suite leaders credited a third of their company's sales growth in 2023 to travelling for in-person meetings. (TravelPerk)
- Overall, 67% of business travellers believe their company would lose revenue without in-person meetings, while 95% of C-suite executives think they would lose customers. (TravelPerk)
Corporate travel managers need access to better technology
- 90% of travel and expense management decision-makers want to auto-enforce travel policy compliance. (Brex)
- 94% of travel and expense management decision-makers want an all-in-one solution that includes travel, reimbursements, expense management, and corporate cards. (Brex)
- Only 58% of travel and expense management decision-makers understand all their travel-related fees. (Brex)
- 42% of travel and expense management decision-makers consider the ease of use of their expense solution a major challenge. 31% have problems integrating with other software, such as accounting systems. (Brex)
- Most travellers book at least some of their trips via unmanaged channels. (Deloitte)
- Around two-thirds of companies use an online expense reporting platform with a mobile app. (Finances Online)
- 31% of travel managers find it most challenging to understand how a hotel will meet their program needs during the sourcing stage. (Cvent)
- 45% of travel managers say negotiating with hotels has become more challenging in the last five years. (Cvent)
- Only 59% of travel managers regularly share travel-related performance metrics with senior leadership. (GBTA and Spotnana)
Mobile bookings are growing
- 40% of business travellers book their hotel stays via smartphones. (Hotel Tech Report)
- 56% of business travellers book their own hotel rooms and flights, while 44% have someone else handle the bookings for them. (Hotel Tech Report)
- While 60% of all online traffic came from mobile, most purchases in 2023 were made on desktop, which accounted for 62.5% of online sales. (Salecycle)
- Nearly one-third of travellers booked through a website on a mobile device, while 23% used a mobile app to make their booking. (Expedia)
Traveller satisfaction and concerns
What travellers want
- When it comes to airline business travel statistics, over 70% of travellers now prefer online or app-based flight booking options. (International Air Transport Association)
- Only 16% of travellers value prefer a booking method that includes human interaction. (International Air Transport Association)
- Travellers’ top pre-travel demand is having access to all information in one place. (International Air Transport Association)
- 64% of passengers are happy with biometrics for shorter lines at the airport. (International Air Transport Association)
- When issues arise, 33% of global travellers prefer speaking with a human customer service representative. (TravelPerk)
- Most travellers value technology helpful for reducing travel stress, with 89% valuing mobile planning apps and 86% appreciating features like automatic rebooking, digital bag tracking, integrated booking, and digital travel documents. (Amadeus)
- 78% of travellers want to use AI during the accommodation booking process. (Siteminder)
- 24% of global business travellers plan to take a friend or family member with them on a business trip next year. (Hilton)
What business travellers are concerned about
- Flight delays are the leading concern for almost 75% of business travellers. The second concern is limited seat availability. (Finances Online)
- Business travellers face more friction than leisure travellers, especially with price comparisons (44% vs. 39%), fees (42% vs. 36%), and finding accommodations (45% vs. 33%). (Amadeus)
- Over half of travellers have abandoned online bookings after a bad experience. (Siteminder)
- On average, 40% of travellers are checking travel updates more often due to delays, while 35% now favor booking options with flexible cancellation policies. (TravelPerk)
- The biggest challenge for business travellers when booking trips is finding budget-friendly options (34%), followed by finding options that fit their schedules (30%). (TravelPerk)
- 74% of travellers say minimising their environmental footprint while travelling for business is important. (Hilton)
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Millennial and Gen Z business travel statistics
Millennials and Gen Z are the most frequent business travellers
- In 2024, Millennial and Gen Z employees are the biggest business travellers, with 53% of each group planning to travel for business. (Hilton)
- 26% of Baby Boomers planned to travel for business in 2024. (Hilton)
- Almost 60% of Millennials believe that technology can never replace face-to-face business meetings. (GBTA)
- Millennials are 60% more likely to purchase flight add-ons like extra legroom or in-flight entertainment. (Rydoo)
- Gen Z sees business travel as key to their careers, with 81% believing it boosts their appeal to potential employers and 83% feeling it creates more promotion opportunities at their current company. (Globetrender)
- 76% of Gen Z employees say business travel influences their decision to stay with their employer. (TravelPerk)
Most Millennials and Gen Z employees are happy with their ability to self-book — but what are their booking preferences?
- Millennials and Gen Z prefer direct online channels for flight bookings. (Skift)
- 75% of Millennials and Gen Z hotel guests are more likely to book a stay at a hotel offering self-service technology. (Skift)
- Millennials are at the forefront of AI's rise in travel, with nearly 50% of respondents expressing interest in using AI tools for trip planning by 2024. (Euronews)
- 96% of Gen Z business travellers say they’d turn down a trip that doesn’t meet their expectations. A third would decline due to a lack of flexibility to adjust the trip outside of company policy. (Global Business Travel Survey)
Millennials and Gen Z value relaxation, leisure activities, and well-being during business travel
- 43% of Millennials have extended their business travel trip for leisure. (Statista)
- 79% of Gen Z employees want to travel for work to explore new places. (TravelPerk)
- 41% of Gen Z employees would like their company to allow them to extend the duration of trips. (TravelPerk)
- Gen Z employees prioritise well-being during business travel; 34% would like to be able to submit travel expenses for activities such as yoga or exercise classes. (TravelPerk)
- 36% of Millennials prioritise indulgence and pampering during business travel. (Hilton)
- 78% of Gen Z employees want to feel pampered when they travel for business. (Hilton)
- 43% of Millennials and 38% of Gen Zs plan on taking a flexcation trip within the next year. (Expedia)
Business versus leisure travel statistics
Bleisure is becoming increasingly popular
- The bleisure market is expected to grow by around 500% over the next decade. (Forbes)
- Bleisure trips have a worldwide market value of nearly $600 billion. (Forbes)
- 76% of business travellers plan to take a bleisure trip in the next 12 months. (Expedia)
- 17% of bleisure trips last four nights or more, 31% span three nights, 39% are two-night stays, and only 12% of travellers opt for a single-night getaway. (Stratos)
- 67% of bleisure trips start with a conference, 46% with external meetings, 42% with sales opportunities, and 30% with internal appointments. (Stratos)
- New York City tops the list for bleisure trips annually, with Paris taking second place and London coming third. (Statista)
- 88% of bleisure trips in the United States are domestic business trips. (Hotel Tech Report)
- Nearly half of American Airlines' $13 billion revenue in 2022 was driven by bleisure travel. (Hotel Tech Report)
- 31% of corporate travel risk policies do not cover the leisure portion of bleisure trips. (Hotel Tech Report)
- 36% of business travellers take overnight business trips every two to three months, 23% every one to two months, and 5% take weekly trips. (Hotel Tech Report)
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Spending on leisure trips is higher, but business travel is more profitable
- In the United States, 69.8% of travel spending goes toward leisure, while 30.2% is for business. Outside of the UK, the U.S. leads in business travel spending globally. (Statista)
- While business travellers account for only 12% of all airline passengers, their airfare is twice as profitable for airlines because they are loyal, use frequent flyer programs, buy amenities like extra legroom, and make more last-minute bookings. (Investopedia)
- Business travellers account for around 75% of airlines’ profits. (Investopedia)
Rogue bookings
Do business travellers follow corporate travel policies?
- 60% of companies have a corporate travel policy in place, yet over half of business travellers are free to book using any method they prefer. (Lodging)
- Hotels are most frequently booked outside of the approved channel. 46% of business travellers choose consumer sites for better prices. (Lodging)
- 52% of employees feel their company's corporate travel policy moderately aligns with its wider culture (Medium)
- 79% of employees believe their company’s travel policy prioritises cost and time savings over employee well-being and happiness. (Medium)
- A travel management tool can boost compliance with corporate travel policies. Advanced booking solutions leverage powerful automation to help organisations achieve 100% compliance.
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