Business travel spending by UK-based firms surpassed ?40 billion last year but remained below the pre-Covid record set in 2019, according to research from the Global Business Travel Association (GBTA).

Total spending on business travel by UK organisations rose from ?36.1 billion in 2023 to ?40.3 billion in 2024, but this was still ?1.2 billion below 2019¡¯s record of ?41.5 billion.

But when adjusted for inflation, this gap between spending in 2019 and 2024 was even wider at ?9 billion, which showed that the ¡°rebound has not yet fully restored T&E (Travel and Expense) to pre-pandemic levels¡±.

¡°This lag underscores a key dynamic in the post-Covid economy: although nominal expenditures have increased relatively more, real investment in T&E is still far behind,¡± said GBTA in its report, entitled T&E and the Bottom-Line: Quantifying the Return on Investment of UK Business Travel.?

The GBTA¡¯s research suggests that if UK companies increased T&E spending by 9.7 per cent it would lead to an 8.1 per cent increase in their sales. This would equate to around ?319 billion in extra revenue to their top line or ?13.80 in additional net operating margin for every ?1 spent on business travel.

The study added that spending an extra ?94 per employee on travel annually could help UK firms to ¡°reach optimal investment levels¡± from their spending on corporate travel.

Suzanne Neufang, CEO of the GBTA, said: ¡°This study challenges the notion of business travel as a discretionary expense. Especially in times of uncertainty or economic pressures, UK organisations should ensure that they are optimising their business travel as a strategic catalyst for growth.

¡°Business travel and in-person meetings boost corporate performance, deepen relationships and spark innovation ©¤ and we see here that even modest increases in investment can yield substantial returns.¡±

The GBTA report also revealed that the sectors which spend the most on business travel in the UK are manufacturing, which accounted for 14.7 per cent of all spending in 2024, followed by real estate (11.1 per cent), mining and utilities (10.2 per cent), information/communications (7 per cent) and professional/technology (6 per cent).

UK spending on T&E has risen by 5.4 per cent annually since 2000 and the GBTA notes that corporates have been ¡°gaining efficiencies in generating more revenue per travel pound spent¡± over this 25-year period. Although, the report added that ¡°continued T&E investment is needed to drive additional growth¡±.