On Tuesday, according to a business travel association, business travel spending is likely to grow by 21% this year globally thanks to the rollout of COVID-19 vaccines; however, it is unlikely to recover to pre-pandemic levels until at least the middle of the decade.
According to the Global Business Travel Association’s (GBTA), spending on business travel is projected to grow to $842 billion in 2021; in 2020 it dropped by 52% to $694 billion, because of the coronavirus induced COVID-19 pandemic.
The GBTA also warned, uncertainties surrounding the progress of the vaccination program by countries, along with the policies adopted by U.S. President Joe Biden could potentially affect the recovery.
“The continued rollout of the vaccine will be central to recovery globally, as will decisions the new Biden Administration makes regarding global trade and border and quarantine policies,” said Dave Hilfman, GBTA’s interim executive director.
Businesses are likely to spend more on business travel that cannot be duplicated with online meetings including sales calls and service trips.
By the end of 2024, business travel spending is projected to touch nearly $1.4 trillion, nearly equaling the 2019 pre-pandemic revenue peak of $1.43 trillion, said the group.
It has projected a full recovery in 2025.
The GBTA said key developing economies in Asia Pacific will drive global growth in business travel over the next decade.