Wednesday Mar 29, 2023

Business Travel Spending Won’t Hit Pre-Pandemic Level Until 2026

Business Travel Spending Won’t Hit Pre-Pandemic Level Until 2026

There are still some worrying times ahead for the global travel industry as recovery in global business travel spending to pre-pandemic level is likely to be delayed now by 18 months to 2026. This is because of factors such as persistent inflation, high energy prices, labor shortages and lockdowns in China. This is being said by new industry forecasts. Overall reports also say recovery of the global business travel spending to pre-pandemic level of $1.4 trillion now has been pushed out of 18 months to mid-2026 by inflation economy slowing down and high energy prices.

The global business travel association is forecasting this and return to 2019 level also is being slowed by supply chain disruptions such as labor shortages, lockdowns in China and effects of war in Ukraine on nearby regions. According to the year 2022 business travel index outlook report, that reviews business travel spending in 73 countries and 44 industries, it is predicted that recent headwinds are pushing recovery of global business travel spending into 2026. Nearly two years later than predicted last November. The association also says many factors are impacting the timing trajectory and pace of business travels recovery both globally and by regions. The total business travel spending globally was $697 billion in 2021. It was 5.5% percent above pandemic era low in 2020. However, by 2025 it is estimated it will reach $1.3 trillion nearly level of 2019. Furthermore, the total business travel spending will reach $1.4 trillion only in mid of 2026.

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