Business travel may fully recover in 2024
Corporate travel remains below 2019 levels, but airlines and hotels see a steady recovery
During the pandemic recovery, business travel has trailed behind leisure activities, as corporate professionals and finance leaders became accustomed to video conferencing and occasional office visits. Yet, there are indications that U.S. business travelers are gradually returning, albeit cautiously.
Key takeaways
- The U.S. Travel Association projected in January that business travel would rebound to 95% of its 2019 level by 2024, up from 89% in the previous year. However, if the U.S. economy experiences a "soft landing," with inflation easing and interest rates lowering, major tech and financial firms might increase their business travel;
- Alaska and Delta Air Lines executives, speaking at an investor conference on Tuesday, specifically mentioned the rising travel demand from Fortune 500 companies. Amazon's travel volume has exceeded its 2019 levels, while Microsoft's expenditure is double that of 2023;
- American Express Global Business Travel has observed an increase in travel among large multinational corporations and anticipates a sales growth of up to 9% this year. Additionally, Amex GBT predicts a moderation in airfare and hotel average daily rates in 2024.
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