Business Travel Making Strong Comeback in Europe, Says GBTA

Ιnternational bookings for business trips in Europe have recovered to some 60 percent of their pre-pandemic levels, according to data from the Q1 2023 outlook of the Global Business Travel Association (GBTA).

The association’s 30^th poll, which surveyed over 600 business travel buyers, suppliers, and industry professionals around the world, saw Europe’s recovery in international corporate travel surpassing the North American market, where overseas travel has only returned to around 50 percent of 2019 levels, among other findings.

GBTA’s poll also revealed that Europe’s recovery in domestic business travel has returned to 63 percent compared to North America’s 68 percent. The global average recovery for domestic business travel was 67 percent.

Source: GBTA

Furthermore, despite potential economic challenges and the restricted post-covid return of China, the industry remains optimistic about continued recovery.

Adding to the sentiment, data showed that three out of four travel managers (78 percent) expected their company to take more business trips in 2023 compared to 2022, with 90 percent of respondents believing their employees were more willing to travel for business.

“The return of business travel will vary across regions, sectors, and companies, but a majority of corporate travel managers indicate their companies are anticipating more business travel than last year”, said GBTA CEO Suzanne Neufang.

GBTA CEO Suzanne Neufang. Photo source: GBTA

Overall, the association’s Q1 2023 Business Travel Outlook showed that the global business travel market is expected to see an uptick in 2023 compared to 2022, with companies sending more employees on trips and an increase in corporate travel spending also expected.

More specifically, GBTA’s survey showed that 86 percent of travel suppliers are expecting spending to be much higher or somewhat higher compared to 2022.

The top areas for business travel spending in 2023 will be sales/account management meetings with customers or prospects (28 percent), internal meetings with colleagues (20 percent), and conferences, trade shows, and industry events (18 percent).

Source: GBTA

The top industries for business travel spending growth in 2022, according to travel suppliers, were finance and insurance (34 percent), professional, consulting, scientific, and technical (32 percent), and software, hardware, and technology (25 percent).

On the other hand, non-profits, associations, and foundations, software, hardware, technology, and educational services saw the weakest growth in travel spending in 2022.

Finally, according to the poll, travel suppliers and travel management companies are still struggling with staffing levels with nearly half of them reporting their staffing is smaller compared to pre-pandemic levels.

However, there is hope on the horizon as 65 percent of travel suppliers expect to increase staffing in 2023.