Business travel spend to reach 34% of...

The Middle East and Asia Pacific regions will lead the recovery

A new report by the World Travel and Tourism Council (WTTC) forecasts that business travel spend will reach two-thirds of pre-Covid levels by 2022, with the Middle East and Asia Pacific regions set to lead the way.

The report – entitled ‘Adapting to Endemic Covid-19: The Outlook for Business Travel’ and produced in collaboration with management consulting firm McKinsey & Company – suggests that a modest rise in business travel spend of 26% during 2021 will be followed by a further rise of 34% in 2022.

The report also forecasts that the growth rate will vary across different areas of the world, with the Middle East leading in terms of performance with a rise of 49% in business travel spending this year, followed by a further 32% increase next year.

Asia Pacific follows with rates of +32% in 2021 and +41% in 2022. By contrast, business travel spend is only forecasted to rise by 14% in the Americas this year, followed by a further 35% next year.

In addition, the rise in business travel spend across the Middle East, Asia Pacific, Europe and Africa is set to outstrip the rise in leisure spend this year.

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The report added that some business travel sectors have fared better than others “with early rebounders including manufacturing, pharmaceuticals and construction companies, while service-orientated and knowledge industries – healthcare, education, and professional services – are likely to experience longer-term disruption”.

It also highlighted the importance of business travel for the travel and hospitality industry, noting that prior to the pandemic, business travel accounted for around 70% of all global revenue for high-end hotel chains, while between 55 and 75% of airline profits came from business travellers, who made up around 12% of passengers.

The full report can be read here and for more information, visit www.wttc.org