Business Travel Recovering in Some Markets Faster Than Others

25.08.2023 - 13:43 / skift.com

The latest signals suggest that business travelers are getting back on the road in significant numbers, although a full recovery keeps getting postponed.

“We are now experiencing a major uplift since February 2023,” said Tass Messinis, a strategic advisor at Australia-based travel platform Locomote.

Messinis said that as economies recover, businesses will feel more confident investing in travel spending for meetings, conferences, and events. 

“As companies reassess their business travel requirements post-pandemic, we are seeing a resurgence in ‘DIY’ corporate travel departments in the U.S. and Australia,” Messinis said. “Driven by new emerging technology players, corporations [can now] negotiate better rates directly with airlines, hotels, and other travel providers, resulting in greater cost savings, increased efficiency, compliance, and traveler safety.” 

While travel spending globally is gradually returning to pre-pandemic levels, markets such as India are already experiencing a significant restoration. 

Gaurav Sundaram, president of India-based ProKonsul Consulting, said that the overall flight data for India reported in terms of passenger numbers in 2023 has already exceeded 2019 numbers. 

“There is a very strong resurgence of travel due to a high degree of economic activity throughout the country,” Sundaram said. “[There is a] desire to meet with customers.”

He added that while much of the travel in India may be domestic, international travel is certainly on an upswing long-term — even despite obstacles posed by visa regulations. 

“The government is actively supporting commercial activity,” Sundaram said. “India is now slated to be the third largest economy in the world within the next five or six years.”

In the UK, many companies increased their business travel over the past year, though the recovery still has room to run, said Scott Davies, CEO of Institute of Travel Management (ITM).

Citing a recent ITM survey of 100 corporate travel buyers, managers and heads of travel, with a mix of global, EMEA, UK and Ireland responsibilities, Davies said nearly 60 percent of corporate travel buyers described the current economic environment and cost of travel as being the largest deterrents for travel volumes in 2023. Supply chain disruption and service levels (17 percent of respondents) and sustainability or net zero targets (11 percent of buyers) were additional mitigating factors. 

“Business travel is an essential enabler of commerce, and that is ultimately going to be a driving factor,” Davies said. “Volumes have gradually increased over the last year, but only 28 percent of respondents in a recent ITM survey said they are expecting travel to return to pre-pandemic levels.”

A January 2023 poll from