Global business travel spend is forecast to reach US$2.9 trillion by 2029, according to a new study commissioned by Navan and conducted by data analytics company Euromonitor International.
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The research, which surveyed more than 750 corporate travel managers between March and April across nine countries 每 the UK, US, Germany, France, Canada, UAE, India, Singapore and Australia 每 revealed business travel spend reached $2.09 trillion in 2024, surpassing pre-pandemic levels. With an expected compound annual growth rate of 6.8 per cent, spending is predicted to?reach?US$2.9 trillion by 2029 每 markedly higher than GBTA's 2024 growth forecast?that predicted spending would only just surpass US$2 trillion in 2028.
Additionally, 85 per cent of respondents expect their company＊s business travel costs to increase over the next five years.
※The size and scope of the global business travel market are large and growing,§ said Navan CFO Amy Butte. "Businesses everywhere are prioritising face-to-face interactions, meaning travel budgets are climbing and CFOs are looking to simplify cost management.§
However, two-thirds of current global business travel spend remains unmanaged, according to the report. Even among businesses that have a TMC in place, the study found approximately 10 per cent of bookings still occur outside of approved booking channels.
Small and mid-sized enterprises 每 categorised by Euromonitor as companies with 1-200 employees 每 represent the fastest growing segment of the business travel market, with a compounded annual growth rate of 7.1 per cent between 2024 and 2029, according to the report.
SMEs represented 26.1 per cent of the business travel market in 2024, according to Euromonitor, and have one of the highest average frequencies of travel per employee.
The research also highlighted a growing trend towards blended or ＆bleisure＊ travel, with ※rapid§ growth projected globally and particularly in the US, where bleisure travel spending is forecast to grow 87 per cent between 2024 and 2029, nearly doubling current levels.
The report findings were also based on travel booking data from Navan, Euromonitor＊s own market database and interviews with travel agencies in various markets.