Corporate trips may have become more and more prevalent over the years, thanks to the increasingly globalized business landscape. So much so that millions of business travel initiatives are launched each year. However, with the current pandemic, business travel has come to a halt and it is not expected to recover until 2027.
Companies across the globe understand how important it is to invest in corporate travel. With companies spending an average of $799 per person per day, the business travel market has surely enjoyed the growth in revenue in the past years. Unfortunately, however, when the pandemic hit, many countries experienced huge losses in business travel spending.
China lost $404 billion in business travel spend losses due to the COVID-19 pandemic, the biggest amount among member countries of the Global Business Travel Association (GBTA). (GBTA, 2020) China, however, will continue to dominate the business travel market, with a projected annual business travel spend of $129 billion by 2022.
The second most affected region was Europe, which amassed $190.5 billion in business travel spend losses due to the COVID-19 pandemic. The third most affected region was Asia-Pacific, excluding China, Hong Kong, and Taiwan, with losses amounting to $120.2 billion. (GBTA, 2020)
The reduction in travel spending resulted in a loss of $162 billion for the U.S. economy in 2020. (U.S. Travel Association, 2020)
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