Corporate travel spending in the United States and Europe is projected to surpass half of 2019 levels within the first six months of 2023. It is also expected to rise to two-thirds by the end of the year. Full recovery following the pandemic appears likely to be achieved in 2024 or 2025.
Live events are set to comprise a significant share of corporate travel, advancing from the fifth biggest driver of increased spend in 2022 to the top spot in 2023. More than half of travel managers in both the United States and Europe expect industry events to spur travel growth this year.
International trips will account for a larger portion of the recovery this year: The international share of travel costs for companies in the United States is expected to rise from 21 percent in 2022 to 33 percent in 2023.
Amid increased workplace flexibility and the use of technology, travel for clients outweighs travel for team building and internal meetings. Travel buyers are renegotiating contracts with suppliers and balancing lower expected trip volumes with higher rates for hotel rooms and airfare.
One-third of companies in the United States and four in ten European companies say they need to reduce travel per employee by more than 20 percent to meet their 2030 sustainability targets.
