business travel volumes will lag prepandemic levels as well .
“ With projected spending expected to continue to increase through 2028 , the future of business travel looks promising . However , we must remain vigilant and adaptive to potential headwinds in this period of stabilization , as factors such as changing economic conditions , technological advancements and sustainability developments will also shape the sector ahead ,” said Suzanne Neufang , CEO of GBTA .
Many leading global business travel markets have returned to or are close to their pre-pandemic levels , the study said , which reinforces the momentum of the recovery and increase of spending . However , the outlook for economic and business travel growth is projected to be balanced between potential upside factors and downside risks .
In 2023 , the business travel industry had recovered nearly $ 675 billion of the $ 770 billion lost in 2020 , as per an analysis by GBTA BTI . By the end of last year , it managed to achieve 93 % of the prepandemic peak of $ 1.43 trillion . The sector witnessed considerable resurgence in 2023 , with spending up 30 % compared to 2022 , to reach $ 1.3 trillion .
Recovery of business travel was not the same across all regions . Asia Pacific was the fastest-growing region in 2023 ( 36 %), followed by Eastern Europe ( 33 %) and North America ( 25 %). Last year , the rebound in recovery was led by the U . S ., Middle East and Africa and Latin America , all of which achieved 100 % or more than 2019 expenditure levels . This year , China and the U . S . are anticipated to lead as the top two markets for overall business travel spending .
Business travel spending also varied across industries . The financial and insurance activities sector will see the greatest expansion ( 72 %) through 2028 . On the other hand , retail trade ( 41 %) and agriculture , forestry and fishing ( 32 %) sectors will see the least growth during this period .
Although the study predicted an optimistic outlook overall , it identified some factors which could affect business travel ’ s longer-term forecast . Continuous inflation , China ’ s slower recovery , geopolitical tensions , industry workforce challenges and natural disasters can change the outlook . Increased focus on corporate sustainability also has the potential to impact the sector . Business travelers around the world estimated their own spending , on average , amounts to $ 834 per person , based on their last business trip . Of this , accommodation accounts for $ 312 and food and beverage is $ 153 . Air travel averages $ 176 while ground transportation ($ 103 ) and other expenses ($ 89 ) round out the total .
A majority of survey respondents ( 81 %) reported that their most recent business trip was very ( 46 %) or moderately ( 35 %) significant in achieving their business objectives . Asked about their most recent business trip , the most common purpose of travel among all business travelers was to attend seminars / training followed by conventions / conferences .
Compared to 2019 , 76 % of business travelers said they traveled the same or more for business travel . Those traveling more ( 28 %) outpaced those who traveled less ( 20 %) over the same period . Although overall business travel has surged , both international and group travel remain , on average , lower than 2019 levels . While 40 % of the trips taken consisted of three-to-fivenight stays , two-night stays account for onethird ( 32 %). Additionally , 58 % said they extended work trips for leisure or vacation about the same ( 41 %) or more frequently ( 17 %) than previous .
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