Strong Recovery in Global Business Travel Spending: The Future of Corporate Travel Amid Rising Costs, What You Need to Know – Travel And Tour World

International business travel’s future remains a rapidly shifting scene, with much to happen during the next four years. Global business travel continues to rise, fueled by increasing corporate budgets, strong demand by small and medium-sized enterprises (SMBs), and the continuing adoption of managed travel programs, according to a new report by Euromonitor International, which was commissioned by Navan. Strategic trends redefining the sector are identified through the report, which has insightful data for corporations as much as travel management companies (TMCs) as the new reality challenges them.

Comprising expert interviews, data analysis, and survey data across nine nations like the U.S., Canada, the U.K., Germany, India, Singapore, Australia, and the UAE, the study provides an in-depth overview of the current business travel situation across major global markets. Business travel spends are set to continue rising, the study concludes, as businesses emphasize the importance of meeting people in person when forming relationships, cooperating, and achieving business success. For businesses, the trend also highlights the importance of effectively managing their travel spend and making data-driven business decisions.

Small and Medium-Sized Businesses Fueling Demand for Managed Travel

One of the most notable findings from the Euromonitor report is the rapid growth of business travel among SMBs. These businesses, which represent companies with 1 to 200 employees, are emerging as key drivers of growth within the global business travel market. The report predicts that the SMB segment will experience the fastest compound annual growth rate (CAGR) of 7.1% from 2024 to 2029, a trend that reflects a strong demand for travel management solutions tailored to their unique needs.

As expanding smaller businesses look to take their operations international, they are becoming ever more appreciative of the benefit of online travel platforms to simplify booking, control costs, and stay compliant. In 2024, SMBs controlled 26.1% of the international business travel marketplace, while high use of employee travel perpetuated their influence as a sector to contribute to future expansion. For travel management providers such as Navan, this is a significant opportunity to serve SMBs with convenient travel offerings.

Bleisure Travel: A Growing Trend in Global Business Travel

Another significant trend identified through the Euromonitor report is the rise of “bleisure” travel, which sees business travel become intertwined with leisure activities. As rising numbers of professionals seek to extract the maximum amount of value out of their travel by incorporating their own downtime, the segment should see significant growth. In fact, the report foretells U.S. bleisure travel spending rising 87% over the 2024-2029 forecast, nearly doubling the current rates.

Businesses and travelers alike are increasingly recognizing the benefits of bleisure, not only in terms of employee satisfaction but also in fostering creativity and productivity by providing workers with the chance to recharge and explore new destinations. For companies, this trend highlights the potential for a more flexible and cost-efficient approach to business travel, particularly as employees continue to prioritize work-life balance.

The Role of Managed Travel Solutions

Despite the overall growth in business travel, Euromonitor’s research also reveals that a significant portion of global business travel spending remains unmanaged. Currently, only 35% of global business travel is managed through travel management companies (TMCs). This presents both a challenge and an opportunity for businesses and travel providers alike, as unmanaged travel can lead to inefficiencies and increased costs.

According to the report, businesses continue to book about 10% of their travel outside of managed systems, creating an opportunity for TMCs to capture additional savings and better manage overall travel expenditures. The trend toward adopting more structured travel management solutions is expected to accelerate, as CFOs and other business leaders seek greater control over their travel budgets and expenses.

The rising costs associated with travel, combined with the increasing need for businesses to streamline their travel processes, means that TMCs will play an essential role in helping organizations navigate these challenges. By offering comprehensive travel and expense management platforms, companies like Navan are positioning themselves as key partners for businesses looking to optimize their travel spending.

Growing Travel Costs and the Post-Pandemic Recovery

The Euromonitor report also emphasizes the continued increase in travel costs, a trend that has become particularly prominent in the post-pandemic era. With global business travel spending expected to reach nearly US$2.9 trillion by 2029, the demand for efficient cost management solutions will only intensify. The report highlights the renewed confidence in business travel, as companies increasingly recognize the essential value of in-person meetings and face-to-face collaboration.

However, the rapid rise in travel costs presents a challenge for businesses seeking to control their expenses. As companies allocate more resources to business travel, they must look for ways to simplify their travel processes and identify areas for savings. This is where managed travel solutions, like those offered by Navan, are set to make a significant impact. By leveraging real-time insights and data-driven decision-making, businesses can better navigate the changing travel landscape and unlock opportunities for cost reduction.

Future Opportunities for Business Travel

Looking ahead, the future of global business travel appears bright, with significant growth projected across multiple regions and sectors. As companies increasingly prioritize face-to-face interactions, travel budgets are climbing, and the demand for managed travel solutions is rising. For SMBs, the adoption of efficient travel management systems will be crucial to staying competitive in the global market. Additionally, the rise of bleisure travel and the growing emphasis on work-life balance will continue to shape the way businesses approach employee travel.

Euromonitor’s report underscores the evolving nature of business travel and the opportunities it presents for businesses, travel management companies, and employees alike. The key to navigating these changes will lie in embracing technology, streamlining travel processes, and leveraging data to make smarter, more cost-effective decisions.

Bottom Line: Adapting to a Changing Business Travel Landscape

As the world of global business travel continues to shift, companies need to stay ahead of the curve. From the growth fueled by the explosion of SMBs to the rise of bleisure travel, the sector is set for real transformation. Yet, mounting travel costs are going to require wiser, more effective answers. With the adoption of managed travel solutions, companies can better prepare themselves for a host of challenges and put themselves at the forefront of a highly competitive global marketplace.

For corporate travel management firms such as Navan, these trends are a major opportunity to enable corporations to streamline their travel process, save money, and realize the full value of their spend on travel. As the global business travel market continues to grow and could hit almost US$2.9 trillion by 2029, the prospects are strong for corporate and travel players embracing transformation.