let's analyze the travel business trends in the world today

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• Dec 21, 2022

2023 Outlook: Business Travel Bounces Back

Corporate travel budgets are recovering to pre-covid levels, our new survey finds. see where companies are spending in the year ahead..

After grinding to a near halt during the COVID-19 pandemic, business trips—and profits for hotels and airlines catering to higher-paying corporate clients—are bouncing back even beyond pre-pandemic levels, per a recent survey from Morgan Stanley Research.

Despite higher airfares and room rates, the survey of 100 global corporate travel managers found that many respondents believe their company's travel expenditures are already back to pre-pandemic levels and will continue to grow. The biggest demand is coming from small companies, which means lower-cost airlines may benefit the more than their bigger peers.

“Travel budgets are expected to see a noticeable improvement in 2022, with 2023 nearly back to ‘normal,’” says Ravi Shanker, an equity analyst covering North American transportation.  “Most interesting is that nearly half of the respondents expect 2023 budgets to increase versus 2019 overall. And of those that expect an increase in budgets, the majority believe 2023 budgets will be between 6% to 10% higher than 2019.”

Overall travel budgets show an improvement over previous surveys, with 2023 budgets expected to be 98% of 2019 levels on average.

Survey Highlights

•   Smaller companies lead demand for corporate travel. More than two-thirds (68%) of companies with under $1 billion in annual revenue expect travel budgets to increase next year, versus just 41% of companies with annual revenues over $16 billion. Similarly, 32% of smaller companies said travel budgets had returned to pre-pandemic levels compared with 23% of big firms. “This trend could likely favor low-cost carriers, as smaller enterprises tend to be more localized and require less long-haul travel,” says Shanker. “However, the legacy carriers with strong corporate exposure should see gains as well.”  

Nearly a quarter of both large and small companies say their firms are already back to pre-COVID travel levels, and 34% anticipate a full recovery by the end of 2023.

ESG Rate of Change

Holiday budgets hit by inflation, seeing a peak for food prices.

•   Airfares are higher, but that’s not a drag on bookings. On average, corporate airfares are expected to be about 9% higher than pre-pandemic prices. “Clearly the expected increase in corporate airfares is not having a major impact on corporate travel as passenger volume is expected to be basically flat versus 2019,” says Shanker.
• Room rates will continue to rise, though not as fast as they have recently. As of this October, market room rates had spiked 20% to 25% over 2019. Next year they will rise even more, though by an average of just 8%, say respondents (9% in the U.S. and U.K.; 5% to 6% in Latin America, Asia and Africa).
• Hotels face economic and competitive headwinds. While overall travel budgets are growing, companies are cutting costs by trading down when it comes to accommodations. (Historically, budget hotels outperform upscale lodging in tough economic times.) Alternative sources of accommodation also threaten traditional hotels, with 31% of respondents saying they intend to use short-term rental services in the next year.
• Virtual meetings aren’t going away.  Almost 18% of corporate travel will be replaced with virtual meetings, falling slightly to 17% in 2024, suggesting a degree of permanence in the shift with companies recognizing the benefits of virtual meetings ranging from cost savings to lower carbon footprints. Expect companies providing collaboration software to gain from this shift.

For more Morgan Stanley Research insights and analysis on global travel, ask your Morgan Stanley representative or Financial Advisor for the full reports, “Global Corporate Travel Survey: Snapping Back" (Nov. 8, 2022) and “Global Corporate Travel Survey: 2023 Travel Budgets Nearly Back to 2019 Levels, but ~20% of Meetings Could Still Shift to Virtual” (Nov. 8. 2022). Morgan Stanley Research clients can access the reports directly here and here . Plus more Ideas from Morgan Stanley’s thought leaders.

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10 Future Business Travel Trends & Predictions for 2024 and Beyond

Corporate travel remains a crucial aspect of a business. Despite advancements in technology, business travel trends indicate that there’s no substitute for face-to-face interactions. Travel can also support business initiatives for networking, skills development, and recruitment. However, the presence of COVID-19 has thrown a wedge at some of those travel plans, which prompts the importance of risk assessments and possible changes in future travels.

In this business travel forecast, you can read all about the direction the industry is moving in. We’ve also included some business travel statistics so you can make data-driven decisions in your company’s business practices.

Business Travel Trends Table of Contents

• Business is almost always mixed with pleasure
• Unconventional accommodations are in
• Self-booking is becoming the norm
• More flexible corporate travel policies
• Technology continues to revolutionize corporate travel
• The rise of AI, virtual reality, and intelligent assistants
• Blockchain: the future of business travel
• Business travel as a perk
• Slower years for corporate travel and business tourism
• New travel markets are emerging

The business travel industry experienced a decline of 52% during the early months of the COVID-19 pandemic, but with the recent rollout of vaccines, business travel spending is expected to rise to $842 billion in 2021, which accounts for a 21% increase (Reuters, 2021). The majority of businesses have even reported that they are considering resuming their corporate travel plans for 2021, although there are no definite plans yet (GBTA, 2021).

Source: GBTA

One of the major changes to anticipate is the rise of a new type of corporate traveler. Members of Generation Z are taking over the workplace, and predictions point to this age bracket making up around 40% of the workforce by 2021 (Connecteam, 2020). At the end of 2024, business travel spending is expected to reach $1.4 trillion and make a full recovery from the pandemic in the succeeding year (Reuters, 2021). By this time, millennials and Gen Z-ers will be doing much of the traveling given their respective shares in the labor force.

This shift in the demographics of corporate travelers has influenced the global business travel forecast in the coming years. Many business travel trends center around technology and its abilities to enable self-service and make travel seamless.

1. Business is almost always mixed with pleasure

The rise of bleisure travel proves to be one of the most significant outcomes of the demographic shift in corporate travel, and this trend is expected to continue in the midst of COVID-19 vaccinations. With the workforce becoming younger, more employees are looking to do more than work during their trips away from the office.

Although 92% of organizations suspended business travel during the early months of the pandemic, pre-pandemic figures suggest that 90% of millennial business travelers added components of leisure to their affairs (National Geographic, 2020). This could very well occur within 2021 as COVID-19 vaccines are now available.

Bleisure travelers go on these trips once every two to three months. More than half of international business travelers plan to extend business trips to accommodate leisure activities at their destination.

Companies in the tourism industry can capitalize on this trend by focusing their marketing campaigns on local tourist attractions and events. If you’re more concerned of your employees not doing enough business, though, time tracking software can help ensure sufficient productivity.

Key takeaways:

• More employees are taking bleisure trips.
• Bleisure travelers go on trips at least every quarter.
• Business travelers are also willing to extend business trips for leisure activities.

2. Unconventional accommodations are in

Another business travel trend influenced by the new generation of corporate travelers is the growing popularity of unconventional accommodations. Business travelers have become more open to considering staying somewhere other than traditional chain hotels. More are opting to stay in apartments and other accommodations that have a more homey feel.

Smaller boutique hotels and home-like accommodations, like those offered by Airbnb, enjoy increased popularity among business travelers today. For instance, over 70% of millennial corporate travelers had stayed in a vacation rental during business trips (American Express, 2019).

These non-traditional accommodations provide opportunities for exploring the destination in new ways. More travelers also stay further away from the city center, as comfort and proximity to leisure activities are prioritized.

• More business travelers opt to stay in home-like accommodations.
• Small boutique hotels and home rentals have the edge over traditional chain hotels.
• Additionally, more corporate travelers prioritize comfort and proximity to leisure activities.

3. Self-booking is becoming the norm

More corporate travelers opt to book travel options and accommodations on their own. According to recent surveys, 68% of employees book business travel through tools not approved by the company instead of seeking the services of a travel agent (Expedia Group, 2021). After all, there are numerous self-booking options that business professionals can leverage. This trend towards self-booking may also be another offshoot of the generational shift in corporate travelers. After all, millennials prefer self-booking when they travel so that they can find flights and accommodations that meet their preferences.

In some cases, corporations push for self-enablement and provide tools that help employees resolve issues. When these self-service tools fail, though, corporate travelers will continue to rely on customer service from an agent. This is particularly true when emergencies arise, like in cases of canceled flights. Corporate travelers also tend to want to rely on a human for support in more complex issues like visas.

• Business travelers, especially millennials, prefer the self-booking process.
• However, business travelers will continue to rely on human support for complex issues and travel emergencies.

Most Popular Online Booking Software

Here are some of the best online booking software that you can choose from:

• YouCanBook.me is an online booking software that connects customer bookings right into your Google or Microsoft calendars. It also allows you to personalize your booking page and display your availability for multiple locations.
• Acuity Scheduling provides a user-friendly online booking platform to help your clients self-book their appointments. It lets you create branded and customized confirmations, reminders, and follow-ups to drive more client bookings.
• Bookeo is an industry-leading online booking software perfect for service providers, schools, and tour companies. It provides you with advanced marketing tools to help you maximize profit.
• SimplyBook.me lets you build your own personalized and mobile-optimized booking website. It allows you to integrate the system with your existing site or with your Facebook and Instagram pages.
• Checkfront easily handles customer bookings in a unified toolset. With its advanced rule system, it lets you enforce and set your own booking rules.

4. More flexible corporate travel policies

When was the last time you looked at your company’s corporate travel policy? There’s a good chance that some of these policies need tweaking. Recent business travel trends indicate that more corporate travelers are “going rogue (RateGain, 2019).” This means travelers are now more likely to go outside employer-approved channels when booking properties and transportation for their trips.

Corporate travelers need a booking process that provides better availability and allows them to choose from more property and rate options. Combined with emerging preferences for unconventional accommodations, the need for more varied booking options pushes corporate travel policies to become more flexible.

The good news is that companies that offer a plethora of travel options enjoy higher adoption rates for their corporate travel programs (TripActions, 2019). Allowing employees to make choices that align with their needs and preferences encourages a culture of transparency and reinforces trust between employers and employees.

Worried about reining in travel spending while empowering business travelers to make their own choices? Technology now allows companies to adopt a dynamic travel policy. A dynamic business travel policy adjusts according to available options at the time of booking. This way, business travelers will still be able to make their own choices while complying with company policies.

As far as flexibility is concerned, video meetings and teleconferencing have also become alternatives during the pandemic, with 31% of employees stating that remote setups are just as effective as business travel (Forbes, 2020).

Why did you book accommodations outside of approved channels?

Source: Expedia, 2018

• More corporate travelers are going rogue, i.e., not using employer-approved channels, during the booking process.
• Corporate travel policies are becoming more flexible.
• Dynamic travel policies also have a higher adoption rate.

5. Technology continues to revolutionize corporate travel

Technology plays a central role in the global business travel forecast. Mobile technology currently accounts for 39% of hotel bookings and 22% of airfare bookings (FCM Travel Solutions, 2019). These numbers will probably grow with the upcoming upgrade to 5G wireless internet. Also, once the COVID-19 travel restrictions ease up, this technological trend will likely continue.

International business travelers can expect to spend less time waiting in airport lines, thanks to facial recognition technology that speeds up immigration protocols and border control procedures. Other biometric technologies seeing increasing use at airports include fingerprint and retinal scanning.

Trip disruption technology (CWT, 2019) is also evolving to minimize the hassle caused by delayed flights and trains. Travel technology providers can now deliver real-time trip updates to travelers’ mobile devices. This way, business travelers can adjust their plans accordingly and minimize downtime.

Faster in-flight internet access is also in the works. Travel suppliers and mobile network operators are working together to bring high-speed internet into the cabin. With this technology, employees can stay productive even during long-haul flights .

Technology has also moved beyond airports and train stations to make business travel easier. Business travelers can now enjoy automated check-in and check-out processes. These technologies allow travelers to pick up their room key upon arriving at the hotel and head straight to their room. Centralized billing can save travelers from the hassle of having to compute expense costs separately.

• Upcoming upgrades to 5G wireless internet may result in more mobile bookings in the future.
• Facial recognition and biometric technologies will also reduce waiting time for international travelers.
• Trip disruption technology helps corporate travelers adjust to delays in the journey.

6. The rise of AI, virtual reality, and intelligent assistants

More advanced technologies like artificial intelligence (AI) and virtual reality are poised to bring more changes to the business travel industry. Travel suppliers can use these technologies to discover business travelers’ preferences and take advantage of upselling opportunities. Virtual reality is also predicted to enable personalization, allowing guests to adjust rooms based on their taste (FCM Travel Solutions, 2019).

The coming years also pose many possibilities for intelligent assistants like Siri, Cortana, and Google Now. These assistants are able to handle more complex tasks (Wishup, 2019), like provide updates to itineraries during disruptions and recommend services. All these technologies will greatly benefit business travelers looking to maximize their time during the journey.

Want to learn more about artificial intelligence? Here are some artificial intelligence statistics you may find interesting.

• Artificial intelligence and virtual reality can be used to discover travelers’ preferences.
• Siri and Cortana will soon be able to provide itinerary updates.

7. Blockchain: the future of business travel

Blockchain is also expected to improve security for corporate travelers by 2021. Blockchain’s built-in security protocols make it the perfect technology for making travel as convenient and seamless as possible (Revfine, 2020).

The technology makes data storage and access easier. The constant availability of information is crucial since the travel industry relies on the information exchange between companies. For instance, travel agents pass customer information to hotels and airlines.

Blockchain makes it possible to collect every bit of information involved in the travel process (Amadeus, 2019) – from traveler preferences to flight prices and hotel rates – into a file that’s duplicated across multiple computers. And since the technology decentralizes data and arranges it into permanent blocks, blockchain offers more security. Travel information is always available and safe from user errors or cybersecurity attacks.

Businesses in the tourism and hospitality industry can also take advantage of blockchain technology for luggage tracking, identification services, and customer loyalty schemes.

Outside the realm of travel, blockchain can even be leveraged for other complex tasks like COVID-19 vaccine distribution (Mobi Health News, 2020). Technology this flexible will probably have niftier applications for business travel in the near future.

Cryptocurrencies such as Bitcoin may also soon be accepted as payments by travel companies. If you’d like to learn more about cryptocurrencies, you can check out our guide and FAQs on Bitcoin .

• Blockchain can greatly improve the security of travel information
• Blockchain can also ensure that every bit of travel information is always accessible.
• Likewise, this technology can ease luggage tracking and support customer loyalty plans.

8. Business travel is a perk

Another important aspect of the business travel forecast is the fact that most employees now see corporate travel as a perk (TripActions, 2019). According to surveys, international business travelers consider travel as valuable to professional and personal growth.

Making up the largest segment of the workforce, millennials are also more willing to travel, as they consider it an enriching experience. Similarly, employees who travel often feel more empowered and engaged. Travel can even help improve confidence and interpersonal relationship skills.

More companies are acknowledging these effects and seeing the link between business travel. A robust, dynamic corporate travel program can be used as a tool to encourage employee engagement , improve employee retention, and drive organizational growth.

• Most employees consider corporate travel a perk.
• Millennials consider business travel an enriching experience.
• Frequent business travelers also feel more empowered and engaged.

9. Slower years for corporate travel and business tourism

Business travel growth can finally begin after a serious downturn in 2020 due to the pandemic (Reuters, 2021). And the industry is even expected to make a full recovery. However, certain practices in the age of COVID-19, such as video conferencing and other remote alternatives, will likely stick since 31% of organizations find them just as effective as actual trips (Forbes, 2020) with much lower costs.

In fact, 43% of business travelers already expect that they will travel less post-pandemic (Forbes, 2020). Besides financial reasons, the pandemic has ravaged economies and not all countries have shown an adequate response to the continuing spread of the coronavirus. Furthermore, the rollout of vaccines is concentrated in developed nations (BMJ, 2020), thus development projects in developing nations would likely be canceled or at least met with stiff travel restrictions.

As such, 61% of employees would rather leverage video conferencing platforms than physically venture out to other lands (Forbes, 2020).

• Global business travel spending is growing, but not as much as during previous years.
• Political tensions and trade issues have also contributed to this slower growth.
• Improvements in political issues will support weakening travel prices.

10. New travel markets are emerging

New countries are taking bigger shares of the market in business travel spending. More corporate travelers are flying to India and Indonesia, with these countries showing 11.3% and 8.7% in market growth, respectively. Surpassing South Korea in business travel spending in 2017, India is expected to break into the top 5 business travel markets by 2022 (GBTA, 2018). A report suggests that Asia has become the world’s largest business travel market (Hospitalitynet, 2019), even though the United States outpaces everyone in spending by a wide margin (WTTC, 2021).

Sweden and Norway, with respective market growth rates of 6.8%  and 6.6 %, are quickly becoming popular business travel destinations as well (GBTA, 2018). China, however, will continue to dominate the business travel market, with a projected annual business travel spend of $129 billion by 2022.

Source: WTTC 2021

• India and Indonesia are becoming popular business travel destinations.
• Moreover, India will most likely be in the top 5 business travel markets by 2022
• Despite new markets, China will continue to be the top business travel market in the next couple of years.

Take advantage of these business travel trends

Travel remains an important business aspect for many companies today. If your employees are frequent travelers, it will be helpful to stay ahead of these business travel trends. This way, you can prepare for these changes and adjust your corporate travel policy accordingly, especially with COVID-19 still looming.

Information in these trends is also useful to travel management companies and businesses in the hospitality and tourism industry. Hotel owners or rental car companies can use these travel trends to gain insights into their customer base. These trends also present an excellent opportunity to adopt new business practices.

Many of these travel trends center around technology. It definitely won’t hurt to look into new software and applications that will give you that technological edge.

Want to get cracking on modifying your current business processes? Check out our article on the benefits of using business process management software .

References:

• Amadeus (2019). The Future of Business Travel . Retrieved from Amadeus
• American Express (2019). Trends on Business Travel’s Biggest Generation: Millennials . Retrieved from American Express
• BMJ (2020). Covid-19: Many poor countries will see almost no vaccine next year, aid groups warn . Retrieved from BMJ
• Expedia Group (2021). Business Travel Trends: How TMCs are keeping up with the corporate traveler . Retrieved from Expedia Group
• FCM Travel Solutions (2019). Business Travel 2020: The Trends & Tech that will Shape the Future of our Industry . Retrieved from FCM Travel Solutions
• GBTA (2018). GBTA Forecasts Seven Percent Growth in Global Business Travel Spend, Potentially Signifying End to Era of Uncertainty . Retrieved from GBTA
• Mobi Health News (2020). Blockchain could be the key to vaccine distribution, says IBM . Retrieved from Mobi Health News
• Pundora, D. (2019). 30 Benefits of Hiring a Virtual Travel Assistant . Retrieved from Wishup
• RateGain (2019). Delivering Duty of Care in the Age of Corporate Rogue Travel . Retrieved from RateGain
• Regan, R. (2020). Everything You Need To Know About Generation Z In The Workplace in 2021 . Retrieved from Connecteam
• Reuters (2021). Global business travel to grow 21% in 2021, trade group forecasts . Retrieved from Reuters
• Revfine (2020). Blockchain Technology within the Travel Industry . Retrieved from Revfine
• Statista (2021). Business tourism spending of G20 countries in 2019 . Retrieved from Statista
• TripActions (2019). 7 Business Travel Trends to Watch in 2020 . Retrieved from TripActions
• Wallin, B. (2020). How the death of business travel will change your next vacation . Retrieved from National Geographic
• Wyman, O. (2020). How Videoconferencing And Covid-19 May Permanently Shrink The Business Travel Market . Retrieved from Forbes

By Jenny Chang

Jenny Chang is a senior writer specializing in SaaS and B2B software solutions. Her decision to focus on these two industries was spurred by their explosive growth in the last decade, much of it she attributes to the emergence of disruptive technologies and the quick adoption by businesses that were quick to recognize their values to their organizations. She has covered all the major developments in SaaS and B2B software solutions, from the introduction of massive ERPs to small business platforms to help startups on their way to success.

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Business Travel Statistics [2007-2024]: Market & Trend Data Analysis

Business travel is on the rise. Companies still see it as essential and are willing to spend on in-person collaboration. This report unpacks the findings from our business travel statistics research.

In many industries, travel is a regular necessity for business. Even in the post-COVID age of telecommuting and Zoom meetings, companies are willing to spend significant amounts on travel for in-person collaboration.

Why is this the case? How much is spent on business travel? Where does that money go? What are the trends in the business travel industry? Who travels for business, where are they going, and how long are they staying? These are all key questions for understanding the business travel industry.

I’ve dug deep into data from key sources in the industry, like the Global Business Travel Association, the Bureau of Transportation Statistics, and Expedia’s Bleisure Travel Trends Report. After extensive in-depth research, I extracted several key findings.

For decades, business travel looked very much the same. As younger people and women are traveling more for business, and as more people are adding leisure time to their business trips, the landscape of business travel is changing dramatically.

Key Business Travel Statistics

• Over $1 trillion is spent annually on business travel worldwide.
• Business professionals expect 25% more revenue generated from in-person collaboration over virtual meetings.
• China has the highest business travel spending at $360 billion in 2022.
• The largest percentage of business travel spending goes towards lodgings, with meals coming in second.
• The average business traveler is a 42-year-old male, but that is changing as more young people and more women are going on corporate trips than ever before.

Business Travel Spending Statistics

In 2019 (before the pandemic), the business travel industry accounted for $1.4 trillion in global spending. While 2022 spending was still lagging due to pandemic recovery ($1.03 trillion), the Global Business Travel Association (GBTA) predicts business travel spending will surpass pre-pandemic levels in 2024 and continue to grow to $1.8 trillion in 2027.

With so much being spent, the business travel market is a significant economic force. Not only does corporate travel inject money into the tourism industry and local economies, it also leads to improved productivity and profits. Even in the world of Zoom and telecommuting, the need for business trips isn’t going away anytime soon.

It’s telling that companies carve out a significant budget for corporate travel spending. Clearly, there is an expected return on investment for companies to be willing to make the spend, especially since the average business trip is often more expensive than leisure travel.

According to the ACCOR Business of Travel Report , business professionals expect 25% more revenue generated from traveling for in-person collaboration over virtual meetings .

It’s worth understanding how much is spent on business travel, where that money goes, and when companies decide business travel is worth it.

Here are the key business travel spending statistics to understand the economic impacts of the business travel industry.

Business Travel Spending by Country

Global business travel spending is highly concentrated in a few countries with industrial economies, with China and the United States far outpacing the rest of the world.

Here are the top 15 countries for business travel spending according to the 2023 Business Travel Index Outlook from the GBTA.

It’s no surprise that, with a few exceptions, these same countries are also the highest ranked for GDP. Interestingly, Russia is the only country in the top ten for GDP that doesn’t appear on this list.

Business travelers are almost universally traveling within or between these 15 countries.

The rest of the world combined only adds $207 billion to the total global business travel spending. As with many other metrics, this shows how much the world’s economic activity and wealth is concentrated within a few regions. These 15 countries make up only about half the global population, but they account for 85% of the global business travel spending.

Business Travel Spending Categories

Business travel can be broken into several spending categories to see where companies are spending the most money. The chart below shows the total 2022 spending across five categories according to the GBTA .

It’s easy to assume that airfare would be the leading expense for business trips. In reality, it’s only third on the list after lodging and meals. Lodging is the largest spending by far for corporate travel, accounting for more than double the amount of any other category.

Business Travel Spending vs Leisure Travel Spending

While business travel is a large industry, leisure travel is even bigger. The table below shows total travel spending divided between business and leisure travel according to Statista .

On average, only 15.2% of travel spending comes from business travel. 84.8% is from leisure travel.

However, that breakdown is not consistent across all travel industries. Hotels, dining, and tourist activities generally make much more money from leisure travelers, but many airlines actually earn a larger percentage of revenue from business travelers.

According to Investopedia , only 12% of airline passengers are business travelers. However, because business travelers pay higher rates, more often book last-minute, and are more likely to fly first class, they can account for up to 75% of airline profits.

While many leisure travelers try to save as much money on airfare as possible, corporations are often more likely to spend extra for upgraded business travel comfort.

Research from Business Traveler found that 33% of international business travel flights are in premium class, and 13% of domestic business travel flights are in premium class.

While leisure travel is significantly larger, business travel spending is still a critical component of the travel industry.

Business Traveler Demographics

Traditionally, the majority of business travelers fit within a very distinct demographic. The average business traveler is a 42-year-old man.

But times are changing. Younger people and women are traveling more for business, and these trends will likely change what business travel looks like in the future.

Here are the key business travel statistics relating to traveler demographics.

Business Traveler Age

Generally, people traveling for business are more likely to be in more advanced roles in their career, and people in leadership roles often travel more than others.

Business Travelers by Age

The vast majority of business travelers are in their 30s and 40s—people who are in the stage of working up the ladder in their career. The average age for business travelers is 42.

However, according to market research by Skift , the average age of business travelers is gradually shifting downward, and more younger people are traveling for work.

This will have dramatic affects on the business travel market, as younger travelers prefer Uber over taxis, vacation rentals over hotels, and are less likely to make booking decisions based on travel loyalty programs.

Business Traveler Gender

Historically, corporate travelers have dominantly been men. A Bureau of Transportation Statistics report found that 77% of business travelers that year were men.

However, that trend is beginning to change. The table below compares 2001 gender breakdown with updated 2022 statistics for business travelers.

Gender Difference in Business Travel Over Time

In 2022, 37% of business trips were made by women. That’s up 14% from the 2021 figures.

As workplaces around the world make slow progress toward gender equality, women will take more business trips than ever before.

Interestingly, while business travelers are much more likely to be men, the opposite is true for leisure travel, according to research by Forbes . The table below shows a comparison of the gender breakdown in business travel and leisure travel.

Gender Difference in Leisure and Business Travel

64% of travelers on leisure trips are women.

The demographics for business and leisure travel are not aligned. Where the average business traveler is a 42-year-old man, the average leisure traveler is a 47-year-old woman.

Clearly, women are more apt to travel than men outside the workplace, and the only reason that men are more likely to travel for work is due to overall gender inequality in business. It will be interesting to see if women surpass men in business travel as companies move towards gender equality in workplaces.

Yearly Business Travel Trends

As with most industries, business travel has been growing steadily. As companies continue to grow globally, international collaboration will become more important, and business travel will become even more essential.

The table below shows the global business travel spending over time from 2007 to 2022 according to Statista .

Prior to COVID-19, the only recent drop in business travel spending occurred in 2009, during the recession. From 2008 to 2009, business travel spending dropped 5.7%.

Over the next 10 years, business travel spending increased by 63% and peaked at $1408 billion in 2019. This progress was followed by a massive drop, as the COVID-19 pandemic put a damper on travel.

From 2019 to 2020, business travel spending dropped 53% due to pandemic travel bans.

While the travel industry as a whole has recovered quickly from the pandemic, business travel has had a slower return to pre-pandemic levels according to Deloitte Insights .

Still, growth is on the way. Global business travel spending is expected to surpass pre-pandemic levels in 2024 and continue to grow.

“Bleisure” Statistics

In recent years there has been an increase in business travelers participating in leisure activities or asking to add extra time to their business trips to enjoy free time at their destination. This growing form of business tourism has earned the nickname “bleisure.”

Bleisure trips should become a more important consideration for corporate travel managers when designing a company’s travel policy. When business travelers spend more time as tourists at their destination, they are more likely to see corporate trips as a perk of their job rather than a burden.

The Expedia Group conducted a survey of over 2,500 bleisure travelers worldwide , and I’ve unpacked the key statistics from their report that you need to know.

Bleisure Trip Length

Since bleisure involves combining tourism, downtime, and relaxation with business travel, no two trips are the same. There are definite trends in the bleisure market though.

The first important trend is that bleisure is becoming increasingly popular. On average, 60% of business trips include time added on for leisure.

The length of a business trip is important for travelers deciding whether to add on leisure time to corporate travel. The table below shows a breakdown of bleisure travelers based on the length of stay for business.

Business Trip Length

The large majority of business trips that turn into bleisure trips are 2 or 3 nights . 50% of survey respondents said they were most likely to extend business travel for leisure if they had to stay 2-3 nights. This time only includes the business travel portion of the trip, and most people adding leisure time into a trip will spend several extra days.

When adding leisure onto corporate travel, people spend 3.9 working days and 2.9 leisure days on average. That means leisure time can nearly double the length of a trip.

Bleisure Travel Destination Statistics

International business trips and domestic business trips are equally likely to become bleisure travel. 51% of domestic business trips are bleisure trips, and 52% of international trips include bleisure.

The destination also matters for business travelers when considering adding leisure time to corporate travel. The table below shows the top features of a destination that make a business traveler more likely to add leisure time to their trip.

Bleisure Destination Priorities

According to this research from Expedia Business Group, good food, beaches, natural sightseeing, and good weather are the top considerations that make for a popular bleisure destination.

Bleisure Traveler Statistics

The number of business travelers including leisure in business trips varies by profession. The table below shows the top five occupation categories for bleisure travel.

Bleisure Traveler Occupations

By far the most bleisure travelers work in technology, IT, or software . In general, technology workers travel more than most other professions, which is a key reason for why technology workers are more likely to include leisure time in their travels.

Another way to characterize bleisure travelers is by how frequently they leave on business travel.

Business Trip Frequency of Bleisure Travelers

Most business travelers adding leisure to a corporate trip are those who take business trips every 2-3 months. The average bleisure traveler takes 6.4 business trips each year .

Sources and Methodology

This report is based on a comprehensive and in-depth analysis of business travel spending, demographics, geographic trends, and yearly trends. I gathered this data from market research firms, academic studies, and government agencies.

The GBTA 2023 Business Travel Index Outlook , ACCOR Business of Travel Report , and Expedia’s Bleisure Travel Trends Report were key sources of information for understanding the landscape of business travel and the trends in the industry.

Other key sources for the business travel trends and demographics in this report include the Global Business Travel Association , Bureau of Transportation Statistics , Statista , Forbes , Business Traveler , and Investopedia . Any sources not included here are cited directly in the text.

There is a tremendous amount of information and data available across these sources, but it is disjointed and often difficult to interpret. I compiled raw data and individual findings from these sources into a single cohesive resource.

I used this wide range of information to generate the tables, graphs, and statistics in this report.

Final Business Travel Findings

Travel is a key part of many businesses. It drives innovation, improves productivity, and increases profits. While COVID-19 created a temporary pause, business travel is back, and will only be growing.

Business travel only accounts for about 15% of total global travel spending, but it is a key market segment for many industries, especially airlines. Business travelers are more likely to fly premium class and spend more on travel overall.

There are also several key factors driving change in the business travel industry. Business travel has traditionally been a male-dominated activity, but more and more women are traveling for business. Younger people are also traveling more for business than ever before. More people are creating “bleisure” trips by adding extra days for leisure onto business trips.

If companies can latch onto these trends and create supportive and inclusive travel policies, business travel can become both more profitable to companies and more rewarding for travelers.

Business Travel Statistics FAQs

Is business travel increasing.

While business travel still hasn’t recovered to pre-pandemic levels, it is steadily increasing.

What percentage of flights are business travel?

On average, around 12% of the passengers on a flight are traveling for business.

How big is the business travel market?

In 2022, the business travel industry accounted for $1 trillion in spending globally.

What companies spend the most on business travel?

Amazon is the company that spends the most on business travel.

Which industries have the most business travel?

Tech and IT industries have the most business travel.

Jakob Thygerson

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9 Business Travel Trends to Watch in 2024

Business travel is making a steady comeback after experiencing a massive decline due to the pandemic. As we move into 2024, companies have the opportunity to reimagine corporate travel.

What will work trips look like for travelers? How will priorities and corporate travel preferences shift based on recent lessons? What will travel budgets look like? While uncertainties remain, industry experts are seeing several business travel trends that will define corporate travel in 2024 and beyond. 

How Have Business Travel Trends Evolved in Recent Years?

The landscape of  business travel  is transforming, reflecting changes in the global economy, workforce diversity, and a shift toward sustainability. Travel is becoming more global, inclusive, and technology-driven. Let's explore pivotal trends that have reshaped professional travel in the past.

• Increased Globalization : More professionals are traveling internationally, forging connections, attending global events, and exploring new markets, highlighting the interconnectedness of today's economy.
• Increased Diversity : As more women and minorities enter the workforce, the demographic of business travelers is diversifying, emphasizing the importance of inclusivity.
• More Sustainable Travel : Travelers are increasingly making environmentally conscious choices, opting for sustainable options like carbon offset flights and eco-friendly  types of hotel rooms .
• Use of Technology : Technology is essential to simplifying logistics, keeping travelers connected, and ensuring seamless work continuity.
• Growth of “Bleisure” Travel : The blend of business and leisure travel is growing, with professionals extending trips for leisure to maximize their time away.

9 Global Business Travel Trends of 2024

As the business world evolves, so does the way professionals travel. Here's a snapshot of the top trends shaping global business travel in 2024:

1. The Demand for Business Travel is Back

Business travel is expected to reach pre-pandemic levels by 2024 as more and more companies resume in-person meetings and events. According to  GBTA's Business Travel Index Outlook  report, business travel spending will reach $1.4 trillion in 2024 and nearly $1.8 trillion by 2027. 

In 2023, the industry has started to steady itself, primarily driven by the resurgence of face-to-face meetings and events and the gradual return of international business travel. Moving into 2024, we expect this momentum will continue to grow rapidly.

2. Bleisure Gets Bigger: Blending Business and Leisure Travel

Modern business travelers’ preferences are changing as they seek to combine business trips with leisure activities, such as extending their stay for a weekend getaway. 

This trend is largely driven by a demographic shift toward a younger workforce. Younger employees are increasingly seeking opportunities to combine work-related travel with leisure activities, reshaping corporate travel dynamics.

This "bleisure" trend offers traveling employees a sweet deal, with flexible travel schedules and a chance to unwind. This means guests are booking rooms for longer than their events will run, which is great for hotels.

3. Increased Focus on Sustainability

Organizations and business travelers are becoming more aware of their environmental impact and are looking for sustainable travel options, such as flying carbon offset and staying in eco-friendly  hotel room amenities . 

Some trends in sustainable business travel include: 

• Sustainable hotels
• Sustainable transportation options
• Paperless travel
• Updated sustainable travel policies
• Use of corporate travel sustainability reports

4. Increased Use of Technology

Technology is going to be incredibly important for business travel in the future, playing a role in the entire meetings and events process. 

Venue sourcing  platforms will help planners efficiently find and compare event spaces based on their needs without needing to conduct site visits for every option. Virtual reality and augmented reality (VR/AR) are expected to become more widely used in business travel in 2024 for virtual site visits and training programs.

Corporate travel management  platforms will optimize booking, provide traveler tracking, and give companies full visibility into their business travel spending. Further, businesses will rely heavily on end-to-end corporate travel technology for managing logistics, gaining insights, ensuring duty of care, and controlling costs.

AI and machine learning will power new  business travel solutions  that can analyze data to recommend hotels, predict flight delays, and more. 

The business travel industry will continue to become increasingly technology-driven, with innovative solutions for venue sourcing, travel management, trip planning, expense reporting, and more taking center stage.

5. Growth of Secondary Markets

One major business travel trend for 2024 will be growth into emerging markets, especially in Asia and Africa. 

The  global business travel market  is estimated to grow from $711.1 billion in 2021 to $2,997.2 billion by 2030, with a compound annual growth rate of 13.3%. Rapid expansion into emerging Asian and African markets will be a key driver propelling this growth. 

India, Indonesia, and other Asian countries are among emerging business travel destinations. To serve this demand, business travel services are ramping up offerings in these markets, and alternative accommodations like home rentals are seeing huge growth to support business travelers. 

Companies will need to adapt their travel programs and supplier partnerships to tap into these new regions.

6. Business Travelers Want Connectivity and Personalization

When it comes to technology, planners and travelers expect personalized experiences. In a tech-enabled world, guests of all ages want innovative and seamless digital solutions to simplify their travel and customize their stays.

This starts with the booking process. According to a  recent survey , 80% of travelers say it's essential to book trips fully online. To that end. hotels should enable guests to easily view and filter amenities and services that will be available upon arrival.

On the road, 76% of global travelers appreciate travel apps that reduce friction and stress. Another 80% say utilizing personal devices seamlessly with on-property technology is key, from Wi-Fi to streaming apps.

Beyond messaging, travelers want mobile technologies they use daily, like touchless payments from phones or smartwatches, or tapping credit cards. The ability to leverage their own devices and platforms provides the personalized experience and connectivity travelers now expect.

7. Loyalty Programs Must Evolve Beyond Points to Experiences

Business travelers in 2024 crave more than just practical perks from their trips; they seek enriching experiences and meaningful rewards. Loyalty programs need to offer real benefits, enhancing travel beyond basic upgrades and conveniences. 

Travelers want rewards that contribute to a memorable journey and strengthen their connection with the service provider. Practical benefits like late checkouts and room upgrades are expected; the true appeal lies in unique experiences, from exclusive events to complimentary services, adding a layer of luxury and personal value to their journeys.

8. Business Travel Will Shift to Purposeful, ROI-Focused Trips

In 2024, business travel will become more purposeful and ROI-focused. The days of casual briefcase trips are over. Now, every trip undergoes a careful evaluation of return on investment and return on expectation. Travel for clear ROI – like closing deals or contracts – will be more easily approved, while relationship-building trips will face more scrutiny.

With staffing shortages and supply chain issues, travel is less comfortable than before. Adding to this is the rising number of flight delays. All of this adds to travelers’ stress and threatens to undermine meeting experiences.

Particularly at hotels, staffing shortages can significantly impact the guest experience. In 2024, hotels will focus on empathy training and service to deliver exceptional experiences despite industry pressures. 

Overall, brands that invest in people and purpose of travel will give business travel a new lease on life. ROI and "return on experience" will determine corporate travel policies, and only trips that justify the time and cost will get the green light.

9. Wellness Will Become Critical for Business Travelers

In 2024, wellness will play a crucial role in business travel programs. The pandemic has made travelers and companies prioritize health and immunity more than ever, and services at every price point must meet this demand with authentic, holistic wellness offerings.

From destination activities to hotel amenities to safety protocols, wellness cannot be an afterthought. It must be woven into every aspect of the business trip experience.

While safety remains paramount, companies are also factoring the “pleasure” aspect of travel into policies, recognizing activities that support mental health and enjoyment are beneficial for employees. 

What Is the Future of Business Travel?

The future of business travel is bright. As the global economy settles and travel restrictions are lifted, we can expect to see even more people traveling for work. But business travel is not going to look the same as it did a few years ago or even in 2023.

Technology advancements in business travel will force hotels to use tools that reduce friction and streamline their travel operations while making their travel programs more sustainable.

Technology will define  business travel planning , with travelers looking for more flexible and personalized options. Travelers will want to be able to book flights and hotels that allow them to change their plans at the last minute without incurring high fees. They will also be looking for travel experiences that are tailored to their individual needs and preferences.

Overall, the future of corporate travel will be defined by sustainable, personalized, mobile-centric, global experiences that keep travelers' health, safety, and productivity top of mind. Hotels and travel providers that can offer these things to business travelers will be the ones who succeed in the years to come.

Hope Salvatori

Hope is a Senior Content Marketing Associate who has been with Cvent for more than two years. She has 8 years of experience producing content for corporations, small businesses, associations, nonprofits, and universities. As a content professional, she has created content for a wide range of industries, including meetings and events, government and defense, education, health, and more.

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WAKING UP TO A

New era of business travel.

Post-pandemic predictions for 2024

WORK HAS EVOLVED.

That means big changes for business travel.

Corporate travel is undergoing a massive transformation right now. What’s driving it? Big societal shifts. Remote working is here to stay, offering employees greater well-being and more work-life balance. Meanwhile, organizations are dealing with an ever-changing financial landscape and new environmental pressures. And at the same time, consumer trends are bleeding more and more into corporate ones. Combined, this means a whole lot of new expectations and friction to manage when it comes to business travel.

Corporate travel is undergoing a massive transformation right now. What’s driving it? Big societal shifts. Remote working has stuck around, offering employees greater well-being and more work-life balance. Meanwhile, organizations are dealing with an ever-changing financial landscape and new environmental pressures. And at the same time, consumer trends are bleeding more and more into corporate ones. Combined, this means a whole lot of new expectations and friction to manage when it comes to business travel.

Travelport is shining a light on some of the ways our customers have quickly adapted to a changing landscape. Having acquired Deem earlier this year, we’re doubling down on our efforts to modernize business travel. And that starts by finding out what today’s business travelers care about most, and then using these insights to further support the modern retailing efforts of travel management companies (TMCs).

We’ve identified six key trends for the year ahead, using our own research, third-party industry sources, and through the collective brainpower of our customers. We’ve crafted examples of how they have modernized their approach to corporate travel to keep all stakeholders happy. So read on, as we bring you the very latest on the evolution of business travel.

CORPORATE TRAVEL IS BACK IN BUSINESS. BUT WHAT’S CHANGED?

Since the pandemic ended, there’s been lots of speculation about the future of traveling for work. But in 2022, according to GBTA, global business travel expenditure increased by 47 %, topping over one trillion US dollars. And that growth shows no signs of stopping. Spending is predicted to recover to pre-pandemic levels by the end of 2024 — faster than the previously projected mid-2026 forecast.

Why? First and foremost, because business travel is a logistical necessity for many people, like sales reps, client service managers, consultants, conferences and events staff, construction workers, circus folk etc. For these folks, being on the road is part and parcel of their role, and it’s budgeted for even more in the most uncertain of economic climates.Because nothing beats being face-to-face time with customers. And the others? They travel because their organizations want them to, remaining steadfast in the belief that meeting in person drives performance and growth . What might surprise you is to hear that almost nine out of ten (87%) of business travelers agree with them .

of employees think business travel is important to company growth

Source: Uber and GBTA report

Nonetheless, many companies are still struggling to get employees moving, and that’s because many are still working from home. In fact, by 2025 it’s projected that 32.6 million US employees will be remote workers. Since that changes the very nature of what ‘work’ looks like, there are also knock-on consequences for business travel, too.

Balancing what everyone wants and needs is a delicate act, and many companies are turning to TMCs to help them do it. So here are six key findings to take into 2024.

6 BUSINESS TRAVEL TRENDS FOR 2024

(AND HOW TO MANAGE THEM)

Research shows remote working offers employees a much better quality of life. So now, when they’re asked to hit the road, it’s important to remember people are giving up relatively much more than they were a few years ago. Business travel post-pandemic feels like a different (and bigger) ask. That doesn’t mean people don’t want to go, but when they do, they expect the same kind of freedom, flexibility, and personal time they enjoy in their daily lives.

of business travelers say their biggest priority is having options that support well-being, productivity, and aid recovery

Source: Travelport research 2022

To meet that need, our customers understand what ‘well-being’ truly means to people. For some, it means paying special attention to comfort, convenience, reward, and recovery time. For others, it means handier flight times, meeting times, or more R&R time. Overall, the goal is to create a feeling where work trips better reflect a normal day, causing less of an upheaval to one’s personal life. In 2024, employees will expect organizations to be flexible and look after their well-being — and this is even becoming as important as pay to many. This was one of the key takeaways from GBTA 2023 — mirroring the findings from Travelport’s third-party research study earlier this year .

OFFERING CHOICE, CUSTOMIZATION, AND RECOVERY TIME BUILDS GOOD WILL

In this strong employment market, well-being is a consideration when asking employees to travel. Research shows that if well-being suffers, people won’t stick around. Leavers create hassle for companies, as empty roles, recruitment costs, and training time all hit the bottom line either as costs or lost revenue.

of workers would consider leaving a company that does not focus on their well-being

Source: Gympass

Just like travel managers and TMCs, Travelport and Deem also believe the customer should always be at the center of any travel experience. After all, well-being isn’t just about healthcare benefits, lunchtime yoga, or hybrid working, it’s about all aspects of work life. But every individual has a specific definition of well-being — just like every business has a specific set of needs to be successful. So why do travel policies sometimes take a one-size-fits-all approach?

The most successful travel programs balance cost savings with traveler satisfaction. So we offer users a modern UI, robust content, and omnichannel support – and partnering with our customers to develop policies that prioritize wellness and productivity.

Direct Travel

Corporate travel managers and TMCs know it’s critical to provide transparency and give the traveler all the choices they need to make sure their needs are met, even if it’s limited somewhat by business policy. This may mean making exceptions and granting managers permission to override a rule, like adding extra legroom or access to a gym. It may mean building in extra recovery time, so they feel rested and ready for work on their return. And it means making sure employees don’t end up out-of-pocket by forking out for small comforts, like a convenient flight time.

Choosing travel technology that presents transparent, rich, and intelligent content and offers, while letting you set different permissions for different individuals makes this easy.

During the pandemic, many people were hired in locations far away from their designated offices. Others moved away from big cities, while being a ‘digital nomad’ became a career option. Companies meanwhile, got more freedom to hire talent from anywhere, including places where it costs them less. Fast-forward three years, and there’s now a new ask from these employees: to come to the office from time to time. So while ‘business travel’ may not have previously been a part of their job, now their ‘commute’ to a physical office might mean taking a flight instead of hopping in their car.

Visiting other offices isn’t something new, but the purpose, format, and frequency of visits is changing. Plus, it’s not just happening domestically anymore, but internationally, too. The EU, for example is taking steps to allow workers to move more freely between offices, albeit for a limited number of days per year, enabling them to fully immerse themselves in another way of life.

This trend has been dubbed ‘ super commuting ’ by some outlets, but unlike a regular, short-hop train or car journey, there’s more grounds for a business to pay for the trip. According to a Deloitte survey, relocated employees are now taking more trips to the company headquarters, most of which (70%) are either completely or partially paid for by the company. And that means there’s a new — or at least, an accelerated — type of business travel to account for in corporate travel policies.

Because the format of these visiting trips can vary quite a lot compared to typical business travel, e.g. to a conference, sales meeting, and so on. Visiting trips are infrequent and tend to be for longer. They’re usually designed to improve connectivity, morale, and retention, so may incorporate more leisure time and activities.

But the challenge with this (besides the income tax implications) is that many companies still rely on old travel policies that were written pre-pandemic, when this concept didn’t really exist, or at least, was an anomaly.

CORPORATE TRAVEL POLICIES ARE RIPE FOR MODERNIZATION

The many new types of working arrangements mean there’s a huge opportunity for travel managers, and many of them have already started to rethink corporate travel policies for these new and nuanced needs. For example, maybe you work for a big tech firm who takes out a long-term lease on corporate apartments for visiting staff , so your main challenge is finding suitable flights or car rental instead of accommodation. Or maybe your company no longer has a physical office, so your travel budget has been reallocated to get people together every so often. By refreshing your corporate travel policy, you can rise to these new challenges, and better balance the needs of travelers and the business.

Corporate travel policies exist to keep a lid on costs, and hitting budgets is sometimes a key measure of success when sending people on the road. But post-pandemic, business travel is about more than just cost containment . There are new metrics that travel managers and TMCs can help organizations improve, like well-being, retention, or productivity.

of business travelers want full transparency into what they are buying

Source: Travelport research

As consumers, we are all now much closer to the planning, booking, and servicing side of a trip than ever before. Plus, in our professional lives many people now enjoy more freedom working remotely, so it no longer feels natural for travel to be any different. All this means business travelers expect to see a wide variety of options, they expect more control over their trips, and they expect to be trusted to make responsible decisions.

That doesn’t mean don’t need or want the support of a TMC (more on this below) — it means more transparency and flexibility is needed from any modern corporate travel policy. To ensure employees do not bend the rules and find opportunities to poke holes in the process.

FIND CREATIVE WAYS TO MAKE CORPORATE POLICIES WORK FOR EVERYONE

There’s a huge opportunity to look to travel managers who are leading the change right now. Imagine if, instead of just having a set of rules, corporate travel policies were more agile? Yes, we still need rules, but business travel itineraries could certainly be more personalized and a little less one-size-fits-all.

Maybe there’s a preferable hotel a little farther from the client that’s a little cheaper. Maybe a traveler would trade a less comfortable flight for a more comfortable bed. Maybe they’re a foodie and they want to spend less on transport and more for a nice restaurant. It’s about empowering people to make choices and prioritize what’s most important to them, while not exploding costs.

Business travelers today want flexibility and personalization. So we’re giving them more choice, the ability to choose their own flights, hotels, and transportation, and creating custom itineraries to fit their individual needs and preferences.

Executive Travel

This is just one example of how we could rethink corporate policies and rule-setting. Letting business travelers have a say on what’s important to them sweetens the idea of business travel, as well as their affinity for where they work. But thinking this way means looking at business travel in terms of a total package, rather than overseeing each distinct element. But done right, it helps the traveler have a more satisfying trip, without negatively impacting the bottom line.

While companies need employees to travel for business, and they have to navigate new needs and operate efficiently, they’re also under mounting pressure to meet sustainability goals. In the U.S., for example, carbon accounting is set to become an SEC reporting requirement , so public companies at least will be required to reduce their carbon footprint and report on their impact.

And these companies aren’t just facing pressure from governments and environmental bodies. Climate change is a burgeoning topic with consumers too, and their concerns don’t go away just because they’re at work. Increasingly, business travelers — particularly younger ones , who are socially conscious — want more transparency on the environmental impact of their trips. On this point, businesses and employees do agree. So it’s not surprising that 63% of companies are investing more in sustainable travel, and 80% of business travelers want more sustainable options.

Nearly a quarter of business travelers would decline a trip based on sustainability concerns

Concur Study

SEEK OUT INSIGHTS ON TRAVEL CHOICES THAT MAKE A REAL DIFFERENCE

When we talk about the importance of choice, we don’t just mean flight times, bag options, and a choice of chicken or salmon. It’s about giving people more information and helping them make informed decisions. When it comes to sustainability, we believe, and the data support, corporate travel managers will play a huge role in driving things forward, as they have the budget and power to make a real difference. But to do that, customers need more than just a leaf icon in their workflow, they need real insight into what a ‘sustainable choice’ actually reflects.

One option is, instead of focusing on carbon offsetting, look at the carbon generating characteristics of every flight. Booking tools need to give customers and their TMC reliable numbers, so they can be factored into flight choices based on their rule set. That way, the reporting will be more accurate, and you’ll know how you’re really tracking against your carbon goals — something for which government and regulators are increasingly calling.

Finally, it’s worth highlighting one approach that companies are trying to reduce their environmental impact, which is sending employees on longer trips instead of multiple short ones. They arrange more meetings in the same city over a longer time, or a multi-city tour, saving on the total number of take-offs and landings. The downside to this is that longer, more demanding trips hit employee well-being, and we know where that leads, right? Not necessarily, if done right, as we’ll see in the next section.

Fewer but longer trips with more meetings is a good way to help the planet, but what does it mean for Susan who has to spend six days away from home, family, friends, and her expensive gym membership? In order to coax people out of cozy home offices and, business travelers are asking companies to make the prospect as appealing and as purposeful as possible.

It’s interesting to see a disconnect between what businesses and travel managers think matters vs. what employees actually want. According to research, travel managers think it’s about late-start days after travel (74%) or letting the traveler book with an airline/hotel they have a loyalty membership with (68%). But business travelers say they want more, like paid-for premium experiences (45%), or additional paid time-off (42%). In 2022/2023, roughly half of business travelers (47%) included additional time for leisure/personal time while (on at least some) of their trips. A further 61% would like their corporate travel policy to allow for some leisure time, plus the freedom to let partners or families join them at the employee’s expense.

We all missed out on trips during the pandemic, right? Less time in the office means time spent somewhere new and exciting. This is particularly relevant for younger employees , who typically want to travel more and view it as a work perk.

BLENDED TRAVEL EXPERIENCES DRIVE EMPLOYEE ENGAGEMENT

In the past, business trips often meant giving up 24 hours of your day, for a few days or more. But today’s focus on well-being means business travel needs to feel more like a normal day with time built in for R&R. So blended travel may be nothing new, but — as Amex GBT points out — remote working and the associated lifestyle expectations have accelerated the demand for it.

This doesn’t mean creating a vacation for employees, though some travel agencies are already starting to offer this service while some employers are looking at that as an option .. More broadly, this is about making sure your people have the flexibility to enjoy a blended travel experience. And even, helping them do it, through the TMC or corporate booking/expense tool.

of business travelers want recommendations for their trip. 85% want agencies to make them.

Source: 2023 Travelport research

Sometimes that only requires a rule set allowing the employee to use their own credit card for extras through the expense platform and the booking tool. Even with things the company would normally pay for (like hotels or meals), you can simply let the employee pay the difference for an upgrade. Or make it part of a rewards program — there are lots of routes to consider. Or you can allow the traveler to book some extras on the same itinerary. Or let them extend trips over a weekend to visit friends nearby or explore the destination. After all, Frankfurt may not be top of your places-to-visit list, but if work is sending you there, why not make the most of it?

Here’s an example: you’ve sent a salesperson to a meeting in Chicago on Friday, but they’ve also got to be in Cincinnati on Monday. Rather than flying home on Friday night, and back out on Monday, doesn’t it feel more rewarding to just connect the two trips and give them a little extra daily allowance for a ball game or a nice restaurant? It’s still cost savings, and the employee gets a better trip and feels more valued. The company benefits, too, because they’re proving they can be flexible, and that they value people’s well-being and personal time. Plus, they hit their sustainability goals. Win, win, win — as long as everyone’s needs are balanced fairly and satisfactorily.

These days, you really have to expect the unexpected. Whether that’s due to extreme weather events, political instability, strikes, or even, dare we say it, bed bugs — there are a lot of external factors that can cause unexpected changes to any kind of travel. According to Egencia , 69% of frequent business travelers now view disruption as normal. But the good news is, that doesn’t deter 94% of people from doing it.

The not-so-good news is that often business travelers don’t feel like they get much support when they need it. Fortune reports that less than a third of employees say they receive practical advice while traveling, including who to contact in an emergency or what to do in the event of an incident. And only a small majority of business travelers believe their company can help with an emergency or personal crisis while traveling abroad. One thing is for sure, that uncertainty is not great for well-being.

Our customers are telling us: travel is more prone to change than ever now, so we need more support on the road. To keep everyone moving, we’re using modern retailing technology to better manage itinerary changes, self-services, and communicating with customers

Increasingly, business travelers (and especially younger ones) are turning to new technology for help managing disruption too. No, that doesn’t mean they’re going to ask ChatGPT for advice if an earthquake happens. It means they’re using it to get things like real time updates, timesaving tips, view activity heat maps in destinations, and make arrangements if circumstances change unexpectedly.

USE RETAILING TECHNOLOGY TO HANDLE THESE DEMANDS

All areas of the travel industry have faced serious short-staffing challenges over the past three years. Coupled with more demands for more support (especially urgent ones) this is a big strain on TMCs. To tackle this, TMCs and agencies benefit from technology that offers richer insights for the traveler, with the right range of choices available in the corporate booking tool. Individuals have different needs and concerns, and functionality that takes that into account is so important — particularly for female safety and LGBTQI+ people. This also allows our customers to deliver greater duty of care, by considering crime levels and traveler safety without the traveler having to scramble for research.

While 77% of respondents have used chatbots, roughly the same amount want the option of live chatting with a human.

Automation and AI can help companies and TMCs support travelers more proactively, so they don’t need to do it themselves. When something goes wrong, customers need tools to communicate directly with travelers in advance and give them choices to help plan for all eventualities. Many want self-service capabilities, so they feel in control of their trip when the world around them isn’t. These days, people expect a range of contact options and things like live chat, so problems get resolved immediately, without having to wait for a callback. And as always, the human touch is critical : many want a real-life agent always standing by to help if plans change. Surprisingly, this is even more important for younger travelers .

Travelport and Deem believe the customer should always be at the center of both the travel experience and the corporate travel policy. After all, happy travelers make the best ambassadors a company can hope to have representing them out in the world.

Over the past few years, we’ve been innovating and investing in the corporate travel space, because this is a sector we believe in. To that end, we’re focused on modernizing the customer experience and making business travelers happy. And hey, many people really enjoy traveling for work (we sure do). But it’s important to keep in mind what they’re now giving up to do so, especially compared to five years ago.

Now is the time many innovative customers are modernizing business travel policy to put people first, and make the process easy, efficient, and comfortable. If you’re a corporation, that means harmonizing employee needs with your own. If you’re a TMC, you’ll be used to harmonizing everyone’s needs, but now, there are new things to consider.

Yes, that means thinking about things differently. Like measuring success not only by cost containment, but by well-being, retention, productivity, and meeting sustainability goals. But you’ll soon reap the benefits. Employees will be happier. TMCs will play a more invaluable role. Travel managers will find it easier to keep people within policy, cut costs, reduce leakage, and deliver on duty of care. And organizations will slash recruitment costs too.

But to do all that, customers need flexible technology that offers transparency, rich, intelligent content, offers, and the ability to set different permissions at the individual level. It’s our job to help you. We can offer the maximum choice in travel content, enable more flexibility in delivering compliant offers, and supply the data that helps measure results.

We aim to provide all the right choices. We aim to help customers find the right trip.

We aim to deliver a modern, easy-to-use platform that makes booking and servicing, simple.

Top 10 Travel Industry Trends Your Business Needs To Know For a Successful 2024

• Group & Multi-Day travel
• Business Management
• Sales & Bookings

From how travelers book to where they want to visit, travel is changing in 2024. To meet the preferences and behaviors of today’s travelers, businesses must first understand what travelers are looking for in their next adventure – and appeal their products and services to those needs. 

In November 2023, WeTravel surveyed 600 global travel businesses, from six key markets to pull together key travel industry trends in its second-annual What’s Ahead For Travel Bookings and Payments Report . 

The report digs into the responses from these travel businesses to uncover the year’s travel industry trends. While the findings span many aspects of travel bookings, collecting this year’s data with our 2023 comparative survey data, we’ve discovered one connecting assertion. While we, in the travel industry, know that 2023 was a pivotal year for emerging travel industry trends–and shifting consumer preferences–after the world stood still for two years, what the data is showing is that 2024 travel is emerging as its own “pivotal year”, a byproduct of the post-pandemic travel era (the year of “revenge travel” that followed the pandemic). 

We’ve taken the findings and created an easy-to-digest list, just below. 

Now, we know you’re wondering: What are the future trends for the travel industry?

10. Changing Traveler Mindset: Seeing Beyond Sights, Spontaneously

While the booking lead time significantly shortened after the pandemic, as travelers were, mainly,  weary of cancellations and airlines often offered seat sales for low-capacity flights soon to depart; this year’s travelers are adopting a more spontaneous approach to planning their trips than years prior, if you can believe it. 

The booking lead time has shortened in 2024, with more than 60% of bookings made within one to three months before departure – half of those bookings (about 33%) being made less than 30 days before departure . The 30-day booking lead time is new behavior from travelers, who, according to WeTravel’s 2023 report, rarely booked less than one month before departure in 2023 and before the pandemic. 

With shortening booking lead times comes the expectation that the entire trip has to be paid at the time of booking, as most businesses require full payment 30 days prior to departure. However, even for bookings more than 30 days prior to departure, WeTravel’s survey found that the most-common payment option is now full payment at booking, signaling a desire for immediate confirmation and a departure from the use of installment payments, which have decreased by 20% from 2023.

For many reasons, a shortened booking lead time can cause operational and logistical issues for an operator – who not only has to manage supply and supplier/destination management company relationships, but also manage trip capacity and revenue. However, receiving full-payment at booking can support a business with revenue management, with guaranteed, non-refundable according to terms and conditions payments.

Given the shorter booking lead times, travel businesses should adopt more agile marketing strategies to capture the attention of last-minute planners. Additionally, provide flexible payment options to cater to the increasing trend of travelers making the total payment at booking. Offering secure and convenient installment plans may also attract a broader audience.

9. Digital Dominance: The Rise of Alternative Payment Methods

Digital payment methods are gaining prominence, reshaping the payment landscape for travel businesses. When we write “digital payments” what do we mean? We mean any non-traditional payment form that can be transacted through a digital outlet like a phone or a computer. In North America, you may be familiar with local payment methods like Apple Pay and PayPal; in Europe, you may better know iDEAL and SOFORT. 

According to WeTravel’s survey, the adoption of Apple Pay as a payment method for tours has surged, with over 12% of businesses now acknowledging its use by travelers, compared to none in 2023. The use of other local and online payment methods, including PayPal and iDEAL and SOFORT, has risen to constitute 27% of all payments collected by the surveyed travel businesses. 

While the percentages may not dominate the payment space, the prediction is that the expectation for local payment methods from travelers will only continue. Looking ahead, 24% of businesses expect a growing preference for online payment methods like Apple Pay, while 26% anticipate an increased demand for solutions that allow travelers to pay using their preferred local payment methods. 

This year, to get ahead of the curve, invest in infrastructure to support digital wallets like Apple Pay and consider expanding to other popular methods. Providing digital payment options to your travelers can enhance the overall customer experience and attract a larger, global traveler base. Recognize the surge in travelers using local and online payment methods; partnering with regional payment gateways can optimize the payment process and build trust among diverse customer bases.

8. The Expense of Experiences: Upsurge in Tour Prices and Spending

After the pandemic, according to WeTravel’s first trends report in 2023, travel businesses were forked: some decided to lower their costs to attract more travelers, while others increased prices to recoup lost revenue during the pandemic and capitalize on the “revenge travel” mentality.

However, the global landscape has changed and more conversations are being had on inflation rising, cost of living, in turn, rising and salary increases deflating, retail industries seeing revenue decline. Well, most would assume these global conversations are impacting travel bookings, it appears, in fact, to be the opposite assertion.

The cost of travel experiences is on the rise. A significant 27% of travel businesses have increased their tour prices by 10-25% for 2024 departures, while 22% have implemented even higher price increases exceeding 25% compared to 2023. In terms of traveler spending, 33% report an increase of 10-25%, indicating a willingness among travelers to invest more in their trips.

While the price increase of travel is noted industry-wide–from retreat leader responses to tour operator responses to destination management company responses–there are ways for your business to increase prices, while continuing to attract bookings. Clearly communicate the value of enhanced experiences to justify price increases. Highlight the unique aspects of the tour or additional services provided to create a perceived value that justifies the higher costs. Additionally, tailor marketing strategies based on traveler segments; for example, customize approaches for those willing to spend more on destinations, unique experiences, or personalized services.

7. Impulse Investment: Travelers spending more, quicker

The power of the phone. The average traveler is not only searching for their next adventure through the device in their hand, but they’re also booking their trips through their mobile. For travel businesses, mobile optimization in the travel booking process is one way to increase your bookings – it’s similar to the up-sell items you may find in the check-out line at your favorite store. The more options you have for a traveler to book, while the trip is on their mind, the better chance you’ll have at converting the booking.

Therefore, in order for a traveler to complete the booking process through mobile technology, the check-out process has to be mobilized for this experience. As such, traditional payment methods such as cash and mailed checks are rapidly declining, plummeting by 70% since 2023. However, according to WeTravel’s survey, a significant amount of travel businesses don’t use a booking platform to manage their business – both at the front-end for user experience and the back-end of business management. 

To successfully capture the online booker, travel businesses should optimize online booking processes to cater to the trend of total payment at booking. Streamlined and user-friendly interfaces can enhance the customer experience, and you can encourage the adoption of digital payment methods by offering incentives or discounts to customers who choose these modern payment options.

6. Involvement In Itineraries: Personalization on the Rise

Existing itineraries rarely stay as designed; it has been like this since the pandemic. Instead, travelers are seeking to customize and add-on specific experiences to existing itineraries in 2024. After the pandemic, the rise of “customizing” tours to stay in a small group (often friends and family) and remove any public transportation or accommodation was quite common. Now, the customization is less about being in a bubble and more about travelers wanting to see the world their way.

This year, 56% of businesses surveyed are offering personalized itineraries reporting an increase in travelers requesting customization. This extends beyond itineraries, as 36% of respondents note that travelers are spending more on add-ons to tailor their trips to their preferences. These add-ons include private transport (28%), accommodation upgrades (24%), and additional days (28%).

In order to manage the operations and logistics of customizing itineraries, invest in technology that allows easy customization of itineraries and add-ons. Providing online tools or dedicated personnel for customization can set your business apart. Facilitate collaborative trip planning by involving customers in the itinerary creation process. Platforms that allow real-time adjustments based on traveler preferences can enhance satisfaction.

5. Sightseeing to Storytelling: Immersive Experiences Sell

The good news for all, another travel industry trend isn’t much of a trend anymore: Travelers are seeking more than just sightseeing; they crave immersive and transformational experiences. When travel is focused on local experiences, every stakeholder benefits. While the idea of local travel has only increased in the past decade, with many operators working alongside destination management companies to support local communities through travel, now more travelers than ever expect local experiences as part of their adventures. 

Half of the respondents have introduced new trips that offer immersive, experiential activities for 2024. Furthermore, 15% of businesses are placing a strong emphasis on local culture and community involvement, demonstrating a shift towards more meaningful and authentic travel experiences.

To appeal to travelers that are seeking immersive, local experiences, incorporate storytelling into marketing materials to showcase the immersive and transformational aspects of your travel experiences. Engaging content can create emotional connections with potential customers. Don’t stop at the marketing: Build partnerships with local communities to create authentic experiences, thereby adding value to your offerings and attracting travelers seeking deeper connections with the destinations.

4. Changing Preferences Impacting Experiences: Culinary and Wellness Focus

We are what we eat, the saying goes. In travel, the same saying applies. More common than years before, travelers are seeking to understand the destinations they’re visiting through the local cuisine. Culinary experiences are gaining popularity, with 39% of businesses expanding their offerings to include immersive culinary-based experiences. Simultaneously, wellness activities represent 26% of the most popular add-ons, highlighting a growing interest in holistic and enriching travel experiences.

This year, forge partnerships with local chefs or culinary experts to enhance the culinary experiences in your tours. Collaborations can elevate the authenticity and uniqueness of your offerings. Develop wellness-focused packages or add-ons to cater to the growing demand for holistic travel experiences. Highlighting the health benefits of these offerings can attract wellness-conscious travelers.

3. Escaping the Ordinary: Exploring Lesser-Known Destinations

This is a trend that is not only good for business, but it’s good for economic development and forging new connections. More than half (51%) of businesses are responding to the trend of travelers seeking unique experiences by expanding their trip offerings to include lesser-known or off-the-beaten-track destinations. Additionally, 18% have observed a rise in travelers willing to spend more to reach exclusive or far-flung destinations.

Continuously diversify your destination portfolio to include both popular and emerging destinations. This flexibility allows you to cater to a broad spectrum of traveler preferences. Consider curating exclusive experiences in lesser-known destinations to attract travelers seeking a more intimate and exclusive travel experience.

2. Africa: The New Travel Frontier

Africa is emerging as a significant travel destination, accounting for 22% of tour operators' current bookings in 2024, up from less than 10% in 2023. Destination Management Companies report a substantial increase in bookings through their partners, with 39% stating that Africa is now one of their most popular regions. This trend suggests a growing interest among travelers in exploring the diverse landscapes and cultures of the African continent.

Moreover, Africa finds that the majority of bookings don’t follow the pattern we’ve seen above (shorter booking lead time, full payment at booking), instead most operators state that bookings are more than six months prior to departure and are heavily reliant on installment payments. Why? The main factor being the higher-ticket price of safaris in Africa. 

How can your travel business capitalize on this travel industry trend? Leverage marketing efforts to highlight the unique offerings of African destinations. Emphasize cultural richness, diverse landscapes, and exclusive experiences to attract travelers seeking novel adventures. Collaborate with local Destination Management Companies (DMCs) to gain insights into the unique offerings of African regions and establish partnerships that enhance the overall travel experience.

1: The Luxification of Travel

A substantial 62% of businesses report that travelers are spending more on their trips in 2024, indicating a broader trend toward more luxurious and personalized travel experiences. This shift reflects a desire for elevated comfort, unique amenities, and exclusive services, underlining the importance for travel businesses to cater to these evolving expectations.

Stay ahead of the curve: Customize services to cater to the preferences of luxury travelers, such as exclusive access, personalized itineraries, and premium accommodations. Implement loyalty programs to reward repeat luxury travelers, fostering long-term relationships and encouraging them to choose your services for future trips.

In conclusion, staying attuned to these trends will empower travel businesses to meet the evolving demands of today's travelers and ensure a successful and prosperous 2024. Adaptation and innovation are key as the industry continues to transform.

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Digital transformation in the travel industry, sales channels: balancing the old and the new, direct bookings vs resellers, marketing channels and strategies for 2024.

The world of travel is experiencing an unprecedented era of transformation: as we enter 2024, the industry continues to deal with the aftermath of the global pandemic and adapt to new consumer behaviors, technological advancements and evolving market dynamics. In 2023, we have witnessed a robust recovery, with international travel volumes approaching pre-Covid levels . However, this doesn’t mean a return to the old ways, as customer preferences have changed significantly in recent years.

There is a growing appetite for personalized, flexible and sustainable travel options, with digital nomadism redefining the concept of both leisure and business travel, blurring the lines between the two. In addition, the rise of experiential tourism is shifting the focus from sightseeing to immersive cultural adventures. Sustainability has also moved from a niche consideration to a mainstream demand , as most people are increasingly aware of their environmental footprint and seek out eco-friendly accommodations and responsible travel experiences. This is more than a fad: it is a broader societal movement that is forcing the tourism industry to rethink its practices and offerings.

For tour operators and activity providers, staying abreast of these changes is essential to survival and growth. To better understand the travel trends that will shape the future of the industry in 2024, we interviewed over 100 industry professionals from all across Europe. This article is designed to accompany our infographic detailing their responses . We hope it will provide valuable insight into the key drivers behind their business strategies and offer actionable takeaways to help you replicate their success. Without further ado, let’s dive right in!

Tourism is undergoing a profound digital transformation, reshaping the way services are delivered and experienced. The emergence of smart technology in accommodations, such as IoT-enabled rooms, and the use of big data for personalized recommendations are examples of how technology is becoming an integral part of the travel experience itself. This integration presents an opportunity for providers to deliver unique value to their customers and stand out in a competitive marketplace.

The pivotal role of booking systems

Booking systems are at the heart of this digital revolution and have quickly become a critical interface between the supplier and the customer. Not surprisingly, 89% of respondents to our survey use them to easily manage bookings, sell tickets online and connect with leading OTAs. Let’s explore the top 5 features they find most beneficial in a booking system:

Key features of booking systems

• Online payments: Offering secure, versatile online payment options is essential. This includes accepting multiple payment methods such as credit cards, PayPal, and digital wallets to serve a global customer base.
• Dashboard calendar: An intuitive dashboard calendar facilitates the management of bookings, availability, and scheduling. This feature enables suppliers to stay organized and respond quickly to changes, minimizing overbooking and scheduling conflicts.
• Booking widget: A customizable booking widget on the supplier’s website allows the booking process to be seamlessly integrated into the user experience. This results in a smoother booking flow and encourages more direct bookings.
• Channel manager: With the proliferation of distribution channels, a channel manager becomes vital. It ensures real-time synchronization of availability across multiple platforms such as OTAs, the official website of the supplier and other portals, reducing the risk of overbooking and facilitating inventory management.
• Booking management: Efficient booking management includes features such as easy cancellations or changes, automated confirmation and reminder emails, and customer management tools. This improves the overall customer experience and operational efficiency.

As the leading booking system provider in Europe, Regiondo has been at the forefront of incorporating these essential features. The platform offers a comprehensive solution that not only addresses the basic needs of booking and payment processing, but also provides advanced tools such as resource management , marketing integrations and detailed analytics. This makes Regiondo a model for digital transformation in the travel industry, demonstrating how technology can facilitate business operations and enhance the customer journey. To learn more about how Regiondo can help your business thrive, book a demo with one of our consultants.

In 2024, the sales channels of the travel industry will continue to evolve: understanding how to balance them is key to maximizing reach and profitability.

Offline vs online dynamics

The travel industry has historically relied on a mix of offline and online distribution channels. While online channels have seen tremendous growth, especially in the wake of digital transformation, offline channels such as in-person travel agents and booking offices still play an important role, especially for certain markets and demographics.

Current balance: In our Trends 2024 survey, we asked participants to break down the share of sales they make online vs. offline. The weighted average shows that 56.67% of tickets are sold through digital channels, while the rest (43.33%) are sold through phone, in-person, and other offline channels. In summary, the current landscape is skewed towards online, driven by the convenience, accessibility and wide range of options it offers. However, offline continues to thrive by catering to customers who value personal interaction and customized service.

Future trends: The future points to a more integrated approach, with a growing emphasis on phygital experiences that blend physical and digital elements. For example, interactive digital displays in physical travel agencies could increase customer engagement.

Another issue we wanted our experts to weigh is their relationship with distribution partners. Specifically, we asked them to disclose the number of online bookings they receive through direct channels (website, official social media pages, emails) versus those received through resellers. The results paint a clear picture, with a weighted average of only 33% of tickets sold through intermediaries. But let’s take a closer look at the pros and cons of these two types of channels:

Direct Bookings

• Pros: Higher margins, direct relationship with customers, greater control over customer experience.
• Cons: In order to attract direct bookings, you need to invest in marketing, technology and a strong brand presence.
• Pros: Extended reach, especially in markets where your brand has less presence; reduced marketing costs.
• Cons: Lower margins due to commissions, less control over the customer experience.

Leveraging Both

In our humble opinion, the key is to find the right balance. Leverage resellers to reach new markets and demographics, while building a robust direct booking strategy to drive customer loyalty and brand identity.

The Role of OTAs (Online Travel Agencies)

Among the various resellers, OTAs have become a dominant force in the travel booking landscape. As you know, they offer exposure to a huge audience, but at the cost of commissions. Speaking of which, we asked our survey participants about the average percentage of commission they pay to OTAs on each order. The results are interesting: 1 in 3 respondents said they don’t work with OTAs at all to save on these costs. As for the rest, the vast majority pay fees ranging from 20% to 29% of the price of their tickets.

We also asked our industry experts to identify which OTAs drive the most bookings for them from a selection of the most popular. Their response highlights how fragmented the digital distribution landscape can be, as a quarter of respondents said the resellers they have the most lucrative relationships with are not on our list. Still, when it comes to the top dogs, this is the podium:

• GetYourGuide
• TripAdvisor

Love ’em or hate ’em, OTAs continue to be a mainstay of the leisure industry, which is why we want to draw your attention to three important key elements that will help you get the most out of the commissions you pay:

• Perform a cost/benefit analysis: As we have seen, commissions can vary widely, typically ranging from 15% to 30%. It’s important to understand the cost/benefit ratio and how it impacts overall profitability.
• Negotiate: Negotiate better rates as your business grows, bundle services to increase the value of each booking, and use OTAs for visibility while encouraging repeat bookings through your direct channels.
• Follow these best practices: Ensure your listings are up-to-date and engaging, take advantage of OTA marketing tools and analytics, and tap into OTA platforms for market insights and trend analysis.

As the travel landscape continues to evolve with ever-changing customer preferences, it can be difficult for tour and activity providers to understand the most effective marketing strategies to employ. So we asked our experts to list the marketing channels that drive more bookings for their businesses. Here are their top 5:

SEO (Search Engine Optimization)

SEO (66% of respondents) continues to be a cornerstone of digital marketing strategies. It’s critical for increasing visibility in search engine results, driving organic traffic and building online authority.

• Key areas of focus: Local SEO is especially important for travel businesses to ensure they appear in searches for local attractions and services. Optimizing for mobile and voice search is also essential as these trends continue to grow.
• Content marketing: Creating valuable, engaging content that answers potential travelers’ questions can significantly improve search rankings and drive organic traffic.

Word of mouth

Word of mouth (61% of respondents) is a powerful tool, especially in the digital age. It can happen organically or be encouraged through referral programs.

• Leverage social proof: Encourage happy customers to share their experiences online, whether through social media, blogs or video content.
• Referral programs: Implementing referral incentives can motivate past customers to spread the word to friends and family.

Social media (Organic)

Organic social media marketing (54% of respondents) is about building community and engaging authentically with your audience.

• Platform-specific strategies: Tailor content to the strengths and audience of each platform, whether it’s visually-driven Instagram, conversation-centric X (previously known as Twitter), or the increasingly popular TikTok.
• Engagement and community building: Posting regularly, interacting with followers, and creating shareable content are key strategies.

Social media and Search ads

Paid social media and search advertising (29% of respondents) is a critical component of a comprehensive marketing strategy.

• Targeted campaigns: Use the granular targeting options available on platforms like Facebook, Instagram, and Google to reach specific demographics, interests, and behaviors.
• Retargeting: Implement retargeting campaigns to capture prospects who have shown interest but haven’t yet booked.

Online reviews (25% of respondents) continue to have a significant impact on consumer decisions in the travel industry.

• Online reputation management: Actively manage your presence on review platforms such as TripAdvisor, Google Reviews and Yelp.

But how much should you spend on marketing? As a point of reference, the estimated average marketing budget for respondents to our survey is €972.82 per month. The key, however, is to take a balanced (no pun intended) approach. While it’s tempting to focus on the latest trends, it’s more important to allocate resources across channels based on their performance and your target audience. We recommend regularly reviewing and adjusting your marketing budget based on analytics and ROI. This may mean shifting funds from underperforming campaigns to those that are delivering better results, or investing in new platforms and technologies.

As we look ahead to 2024, the travel industry is at a pivotal crossroads, marked by rapid technological advances, changing consumer behavior and evolving market dynamics.

Key points:

• Digital transformation: The integration of technology into the travel experience, particularly through advanced booking systems such as Regiondo, is fundamental. The adoption of digital tools and features such as online payments, dashboard calendars, and AI-driven personalization can significantly improve efficiency and customer experience.
• Sales channels: A balanced approach between offline and online distribution channels, and between direct bookings and resellers (primarily OTAs), is critical for long-term success.
• Marketing strategies: The marketing landscape of 2024 will require a mix of advanced digital marketing, content marketing through storytelling, strategic influencer partnerships, local SEO optimization, and well-planned budget allocation across channels.

Looking ahead, the call to action for travel and activity providers is clear: adapt, innovate and thrive. Embrace digital transformation with open arms, understanding that technology is not just a tool, but a bridge to connect with and better serve your customers. Align your sales and marketing strategies to leverage multiple channels and respond to the changing needs and habits of travelers. Most importantly, stay attuned to your audience’s preferences and values to ensure your offerings resonate with their desire for unique, sustainable and culturally rich experiences.

The future of travel is bright and full of possibilities. Let’s embark on this journey together, innovating and evolving to create memorable experiences for tourists around the world.

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Traveling deliberately: Sabre analysis reveals three key trends in the new corporate travel landscape

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Sabre has examined how new ways of working are impacting the world of business travel. Our data reveals that companies and travelers are taking a more deliberate approach to business travel than ever before.

A pivotal moment for business travel

A new era in corporate travel is emerging post-pandemic to adapt to new ways of working around the world. Globally, more than 40% of employees work from home or in a hybrid model. i And, companies are increasingly laser-focused on how travel can deliver maximum business value in this new ecosystem.

So now, more than ever, it’s essential to fully understand how the corporate travel environment is changing and what we, as an industry, must continue to focus on.

At this pivotal moment for business travel, Sabre has taken a dive into our own corporate travel data to identify some of the trends we are seeing in the business travel sphere; finding that corporate travelers are:

• Taking longer business trips to maximize the value of each journey
• Planning further ahead for business travel
• Taking more opportunities to upgrade to a higher cabin class

The shape of corporate travel recovery

What is clear is that business travel is coming back. But it’s coming back differently. We’re not where we were pre-pandemic in terms of the quantity of corporate travel, but the signs are positive. Industry surveys indicate that corporate demand is expected to be healthy in the coming quarters.

According to data analytics from ForwardKeys ii , for example, business travel recovery is set to overtake leisure bookings recovery this year. Meanwhile Deloitte research in the US and Europe suggests corporate travel may make a full recovery in 2024 iii . In addition, Delta Air Lines said its own recent corporate survey showed 93% of businesses expect to increase travel in the second half of 2023, with several of the so-far least-recovered sectors conveying optimism for increased travel. iv

More long-stay trips  

Corporate travelers appear to be staying longer when they make a business trip. 

The data indicates that they want to ensure they can make the most of their trip whenever they decide the time is right to make one. As a result, they appear to want to pack in as much as possible during their stay.  

It seems corporate travelers are also thinking carefully about what is just right in terms of length of stay. They appear to want to take the optimal length of trip to fit in everything they can, without overstaying. 

The sweet spot for most corporate travelers, according to our Sabre analysis, is a stay of two to three days, although there have also been slight increases in the four-to-seven-day stay ranges. 

Planning ahead  

During the pandemic, it was close to impossible to make travel plans, whether leisure or corporate. 

However, our analysis indicates that corporations and their travelers are now making longer-term plans. They’re booking further out for business trips than they did pre-pandemic. That means they can book and put together their schedules much further in advance, really taking the time to consider what they want to get out of their trip, and giving themselves time to carefully plan. 

Our analysis indicates that the majority of business trips are booked within the 15-to-30 -days-out timeframe, and there’s also been an increase in bookings made more than 31 days out.  

Corporate travelers are feeling more confident about making plans further ahead of time, and are taking that lead-in time to make plans and set up meetings. Longer booking windows may also be down to regularity of trips to the office for remote workers, and to help corporations to get the best prices, and budget accordingly.  

A higher class of travel   

 While the picture has remained pretty stable for domestic travel, when it comes to international trips, Travel Management Companies (TMCs) are noting a slightly higher share of premium fares.

A shift in top corporate destinations  

Top domestic corporate routes remain largely the same when comparing pre-pandemic with 2023. There’s still a strong focus on Australia, India, the US, and South Africa, with routes from Paris and mining routes in Australia gaining traffic. For international routes, the top route of London to Paris remains unchanged, with destinations from and to Singapore also doing well. Middle Eastern routes have gained strength while Nordic routes have also increased traffic. Unsurprisingly, given ongoing conflict, journeys to and from Russia are seeing a dip in corporate traffic, as are Chinese routes, where travel restrictions were slow to ease.

Considerations for the travel industry  

The corporate travel industry is more dynamic and complex than ever. To stay relevant and flourish, corporate travel sellers and Travel Management Companies need to think differently, embrace change, and innovate with new solutions and strategies. They need the right technology to manage companies’ approaches to travel.

While business travelers are seeking a carefully considered corporate travel experience, the travel ecosystem has to make certain its own offerings are just as thoughtful and impactful if we are to help ensure that the corporate travel sector continues to recover, grow, and evolve in a way that maximizes revenue for the industry while creating true personalization and value for companies and their travelers.

Want to take this offline? Download the PDF version to read anytime.

[i] Forbes – Remote World Statistics and Trends in 2023

[ii TTR Weekly – Business Travel Recovery Speeds Up

[iii] HCA Mag – Corporate Travel to Make Full Recovery in 2024 Survey

[iv] https://www.businesstravelnews.com/Procurement/Delta-Seeing-Steady-Corp-Improvement

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What search trends mean for travel marketers today

The travel industry has been hit especially hard by the pandemic. It was first into the crisis — and will likely be among the last out of it. Even now, as restrictions loosen, worldwide tourism spending isn’t expected to fully recover until 2023 . And McKinsey predicts international air traffic won’t return to 2019 levels before 2024.

There is hope though. We see from Google searches that people want to travel, provided they feel safe to do so. Global searches for “ where to travel ” and “ can I travel ” are near all-time highs. But as customer needs, priorities, and expectations continue to shift, only 9% of travel marketers believe their business is completely prepared for what the next phase of travel will bring. 1

At Google we’ve done new research to help the industry adapt to the travel needs of today — and tomorrow. Let’s dive into the latest consumer trends and tools to help your business stay ahead.

Travelling for people instead of places

New research from Google and Kantar shows that a primary motivator for travel right now is visiting friends and family. This is echoed by tourism academic Fabio Carbone , who highlights that consumers are looking to travel more for people than destinations. Travel brands can take action by shifting away from more traditional traveller themes; emphasise human connections and shared experiences on your website and ads.

Another travel motivator is ‘ getting away ’. After a dry period of travel, people are looking to disconnect from day-to-day life. With continuously changing restrictions, and ongoing hesitancy over long-distance trips, travel brands should look for opportunities to show how they can help people press the reset button and enjoy life’s simple pleasures .

Quickly adapting to changing consumer needs has helped many companies survive this pandemic. A good way to respond to these changes is through the use of Dynamic Search Ads (DSA) . Whenever someone searches using words or phrases similar to those on your website, Google Ads automatically creates a clear and highly-relevant ad headline that can bring more people to your site.

Destination: Domestic

With global travel restrictions continuing, many travellers are looking for getaway destinations closer to home, and that’s unlikely to change anytime soon. Intent to travel domestically continues to rise, especially in Germany, Italy, Poland, Spain, Turkey, and the U.K.

On the plus side, all that homegrown business is helping to sustain many tourist destinations, and will continue to be a key recovery driver in the short to medium-term.

What can your business do to connect with domestic travelers? In the United Kingdom , search interest for places to stay within the U.K. has risen by over 75% . Consider getting back to basics, and explore how you can help people tap into those forgotten or under-valued treasures nearby.

Focus on sustainability

Sustainable travel was already cited as a trend back in 2019. While 2020 saw far less travel than anyone could have anticipated, this green trend continues to grow. Our research shows that environmental responsibility may become a bigger focus for future travelers, as 42% of travel marketers expect this to be an increasing need. 2

Engage green-conscious consumers by offering eco-friendly experiences and services, and exploring ways to highlight sustainability credentials in your marketing communications.

How people feel about travelling

While consumers are ready to go exploring, many are still cautious about what the future holds and we've seen a notable increase in interest for travel insurance. 3

Additionally, 50% of travel marketers expect tourists will prioritise socially distanced options for the remainder of 2021. 4 According to the OECD , this mindset could even reshape the way people travel in the future — with a greater focus on hygiene and safety protocols as well as contactless tourism experiences. Similarly, people are more inclined to avoid big gatherings and favour private options when travelling.

Ensure you elevate messaging around flexible booking and safety measures further up the marketing funnel to give consumers peace of mind and encourage conversions. People want to know they’re in safe hands and won’t be out of pocket if travel restrictions are suddenly re-introduced or adjusted.

Travel disruption may linger for years to come and operators must find effective and sustainable solutions to see them through. There is no silver bullet, but there are steps you can take to stay on top of emerging trends, spot new opportunities, and give potential travellers the reassurance they need.

Gain powerful insights into real-time travel demand with Destination Insights and Hotel Insights . These new online tools use global Google Search data to highlight destinations with the fastest-growing interest and the most in-demand cities. Brands can see the exact levels of interest for any part of the world at any given time, along with information about where travel interest is originating from. Let these insights power your marketing strategy and improve your business agility.

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What’s next for travel? 3 actions to meet changing consumer demand

Accelerating behaviours: what search trends tell us about changing consumer habits, a (snackable) future of retail report, ‘slow living’: the new fast-rising consumer trend, 5 tips for marketing mix modelling in today’s travel industry, creative intelligence: 3 steps to land your message in a privacy-first world, hany abdelkawi, marco giorgini, sources (4).

1,2,4 Google/Savanta, Global (DE, FR, JP, SG, U.K., U.S.), The Future of Travel: the Travel Marketer Perspective 2021, Online survey, n=983 Global Travel/Tourism manager+ marketing decision makers/influencers fully employed by mid to large market companies, March 2021–April 2021.

3 Google/Kantar, The Journey Reshaped, AR, BR, CL, CO, ES, IT, MX, PE, UAE, U.S., n=3,275, A18+, Sept. 2020–Dec. 2020

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Please note that some of our research products are exclusively available to U.S. Travel members. Learn more about becoming a member or email [email protected] .

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Travel & Tourism Development Index 2021: Rebuilding for a Sustainable and Resilient Future

4. Key findings

Several key findings have been identified in the Travel & Tourism Development Index (TTDI) 2021 results and research. First, the need for T&T development has never been greater as it plays a critical role in helping the global economic recovery by supporting the livelihoods of some of the populations hardest hit by the pandemic and by building resilience, especially when it comes to lower-income countries. Moreover, by investing in the factors that help drive T&T, many economies can leverage tourism to further their overall development. The need for T&T development has never been greater as it plays a critical role in helping the global economic recovery.

Second, the key findings show not only how ongoing challenges such as reduced capacity and labour shortages are tempering the recovery but also how shifting demand has created opportunities, forcing many T&T businesses and destinations to adapt, highlighting the sector’s impressive flexibility. Third, the analysis explores in more detail how various aspects and drivers of T&T development can be more thoughtfully and effectively considered and employed to bolster the recovery and build a more inclusive, sustainable and resilient T&T sector.

4.1 The need for Travel and Tourism development has never been greater

The case for t&t development.

As already alluded to in the global context section above, the T&T sector’s significant contribution to global economic and social development makes its recovery and long-term growth paramount. In 2019, the sector’s direct, indirect and induced output accounted for about 10% of global GDP. Moreover, for many emerging economies, T&T is a major source of export revenue, foreign exchange earnings and investment. On average, out of the economies covered by the TTDI, T&T contributed 70% more towards the exports of middle-income economies than to the exports of high-income economies in 2019. 10 Consequently, restoring T&T sector growth will be particularly vital for developing economies’ recovery. For instance, the World Bank forecasts that emerging markets and developing economies (EMDEs) will not return to pre-pandemic economic output trends until after 2023, with more than 80% of tourism-reliant EMDEs still below their 2019 economic output at the end of 2021. 11 Recent concerns about the slowdown in globalization and trade due to the impact of the pandemic and geopolitical tensions 12 further enforce how important T&T is for global connectivity.

It is also important to note that T&T is vital not only to overall economic performance but also to the livelihood of some of the populations and businesses most vulnerable to, and hardest hit by, the pandemic. This sector contributed to about 10% of global jobs in 2019, 13 employs almost twice as many women as other sectors, has a large share of youth employment and is a major source of jobs for minorities, migrants, informal workers and low-skilled workers. 14 Moreover, SMEs account for more than 80% of T&T businesses. 15 Unsurprisingly, research has shown that T&T growth can support social progress and create opportunities and well-being for communities. 16 Consequently, investing in T&T could not only mitigate the impact of the pandemic but also improve socioeconomic progress and resilience.

Enabling the T&T development landscape

With the case for T&T’s recovery and development clear, it will be critical to focus on and invest in the factors and policies (beyond the critical need for vaccine distribution) that can help enable these goals, many of which are measured by the TTDI. World Economic Forum research shows that TTDI performance correlates with direct T&T GDP, international tourist arrivals and receipts. 17

Figure 3: Travel and Tourism economic and enabling development landscape

Figure 3 can help us understand which economies are likely to be best positioned from a T&T recovery and resiliency point of view, and which may need to prioritize greater investment in T&T enabling factors. This is illustrated by comparing the TTDI scores to economic dependence on T&T. Low- and middle-income economies tend to score below the TTDI average, indicating a potential constraining factor for their economic recovery. In particular, economies in the bottom-right quadrant would gain the most by investing in the drivers of T&T development because they are more dependent on the sector for economic development. Such investment will help their economic recovery by enabling stronger tourism growth as well as supporting their overall economies to be more robust and resilient. On the other hand, while economies in the bottom left are less dependent on T&T, their below-average TTDI score may indicate that their conditions are leading to an underuse of the sector’s ability to drive development, weakening their economic potential – a resiliency issue in itself.

Higher TTDI scores for economies in the top two quadrants indicate that they are more mature markets and are best positioned for the sector’s recovery. Countries in the top-left quadrant are in a more optimal position from a resiliency point of view as they have favourable conditions for T&T operations but are also less reliant on it for their overall economic performance. However, that is not to say that T&T does not play an important role in their overall economic development, especially at the local level and for specific segments of the labour force and SMEs. Meanwhile, economies in the top-right quadrant, like those below them, have also been more vulnerable to the impact of the pandemic, especially given that analysis shows they are typically more reliant on the export of T&T services. These factors may limit their ability to recover economically from the pandemic, but they are also better positioned to generate tourism-led economic growth as international tourism returns. In general, for the most mature T&T countries such as those higher in the top quadrants, sector performance and resilience may be less about making major improvements in aspects of T&T development such as infrastructure and more about continuously calibrating their T&T strategies to adapt to changing demand dynamics, local needs and overall T&T trends.

Figure 4: TTDI 2021 pillar performance

Figure 4 shows in more detail what gaps remain to achieving improved T&T performance and development for various countries. High-income economies and countries in the Europe and Eurasia (Europe) and Asia-Pacific (APAC) regions tend to lead the overall index in results. Among the largest differentiators between index leaders and laggards are: the distribution and promotion of natural, cultural and non-leisure assets and activities; the availability of quality transport and tourist service infrastructure; the degree of international openness; and favourable factors such as (increasingly important) ICT readiness and health and hygiene. However, as shown in the Travel and Tourism Competitiveness Report 2019, because T&T growth is so dependent on factors such as infrastructure and health and hygiene, which if improved bring benefits to more than the tourism sector, sector leaders can play a valuable role in encouraging investment that benefits a country’s economy as a whole. This is especially true for developing economies that have innate natural and cultural assets around which to mobilize investment. 18 The next section detailing key findings will use the TTDI results to discuss the T&T challenges and opportunities created over the past few years, as well as examining how various drivers of T&T development can be employed to bolster T&T recovery and build a more inclusive, sustainable and resilient T&T sector, thereby unleashing its potential for economic and social progress.

4.2 Recovery challenges and shifting demand dynamics

The results highlight difficult operating conditions.

While varying greatly based on local, segment, national and regional conditions, the TTDI results and research help highlight some of the various and common operational challenges the T&T sector faces in its recovery.

With T&T activities being severely restricted over the past few years, the greatest decline in index performance has come from the contraction of related operations and investment. As such, average scores fell in the Air Transport Infrastructure (-9.4%), Prioritization of Travel and Tourism (-6.7%) and Tourist Service Infrastructure (-1.5%) pillars. Air route capacity and airport connectivity plummeted, especially in more mature and high-income economies. Similarly, the decline in tourist service infrastructure reflects initially reduced capacity in the accommodation and related segments. The average number of per capita short-term rental units dropped by about one-fifth between mid-2019 and 2021 across economies ranked in the index. 19 While not reflected in the TTDI results, STR data indicates that, over a similar timespan, the number of hotel rooms did not recover to pre-pandemic levels in many countries. 20 In line with these trends, both T&T capital investment and government T&T expenditures also fell. The decline in sector capacity has also been compounded by the fact that most businesses are SMEs and do not have the means to survive prolonged drops in demand or restrictions on person-to-person contact. The disproportionate impact of the pandemic on the sector is indicated by the direct T&T contribution to global GDP falling from 3.2% to 1.6% and the contribution to global employment falling from 3.8% to 3.1% between 2019 and 2020. 21

Figure 5: Select pillar 2019 to 2021 average score change

Yet, as demand resumes in line with easing travel restrictions and somewhat improving COVID-19 conditions, the initial reductions in capacity increase the potential for supply-side constraints. In advanced economies, in particular, rising demand, earlier layoffs that disproportionality hit T&T, and competition for talent with other sectors have resulted in widespread labour shortages. A WTTC report focusing on the United States, the United Kingdom, France, Spain, Italy and Portugal estimates that the T&T sectors in these countries experienced staff shortfalls ranging from 9% to 18% in 2021. 22 The interconnected nature of the T&T supply chain and ecosystem has also created challenges. Hotels, airlines, car rental firms, tour operators, cruise lines and others all form a chain of service providers dependent on each other along the traveller journey. Bankruptcies or other disruption issues at any point along this chain have the potential to negatively affect the others.

"In addition to labour shortages and capacity constraints, the sector has also been exposed to broader global disruptions that are complicating recovery."

Over the course of the pandemic, growth in merchandise trade coincided with production, worker, equipment and space shortages to create a global supply-chain crisis. For instance, hotels have faced shortages of items ranging from slippers for clients to kitchen equipment. 23

The recent outbreak of war in Ukraine and resulting sanctions and travel restrictions related to Russia have added further pressure on the recovery. Airlines around the world have had to reroute operations, increasing travel times and costs. Meanwhile, the still fragile recovery in international tourism demand could be tempered by increased hesitancy among travellers when it comes to visiting Europe. 24 Many T&T economies in Europe, Eurasia and beyond may also be hard hit due to reduced demand from Russia and Ukraine. Combined, these two economies account for about 3% of international tourism spending, with Russia having been a major source of visitors to destinations ranging from Azerbaijan, Georgia and Turkey to Israel, the United Arab Emirates and Thailand. 25

While not yet fully reflected in the TTDI’s Price Competitiveness pillar, rising travel demand, the stated labour, capacity and other shortages, global supply-chain disruptions and rises in fuel prices and inflation caused by factors such as the war in Ukraine will likely increase costs and service prices throughout the entire T&T supply chain and ecosystem. For example, as of 13 May 2022, jet fuel prices were more than double what they were a year ago, 26 and if they remain high, airline yields and ticket prices will likely rise. 27 Recent UNWTO analysis cites how conflict-induced uncertainty, higher energy and food prices and inflation, in general, are putting pressure on consumer purchasing power and tempering global economic growth, potentially affecting T&T sector performance. Moreover, as economies such as the United States combat inflation by increasing interest rates, consumer demand and T&T investment may be further hit by the rising cost of credit. 28

The pandemic shifts demand dynamics, creating opportunities and driving adaptation

With travel restrictions still common and traveller confidence hampered by pandemic concerns, the past few years have also seen a shift in demand trends in global T&T. According to the UNWTO Panel of Experts, the major trends driving the T&T recovery include domestic tourism, travel close to home, open-air activities, nature-based products and rural tourism. 29 The World Travel and Tourism Council (WTTC) data shows that, on average for the 117 economies covered by the index, domestic spending’s share of T&T spending increased from 50.8% in 2019 to 62.6% in 2020 as domestic demand fared better than collapsing international demand. 30 Moreover, current projections for 2021 show that domestic spending growth is expected to substantially outpace international spend in every region outside of the Caribbean and Middle East. 31

The TTDI results further reinforce the shift in demand dynamics that the world has witnessed. The second most improved pillar is Natural Resources (+2.5% average score increase). While this was driven largely by an expansion in the number of recognized UNESCO World Heritage natural sites and protected areas, such as national parks, the greatest improvement has come from destinations’ ability to garner interest in nature-related segments as illustrated by the 20.8% average growth in natural tourism Digital Demand value, a measure of online searches for topics such as natural wonders, outdoor activities and rural accommodation.

On the other hand, the Non-Leisure Resources pillar had one of the greatest declines in average performance (-1.9%) as business travel declined. While this sector is recovering, it has rebounded at a slower rate than leisure, with factors such as workplace flexibility and the availability of virtual alternatives for in-person meetings tempering demand and potentially leading to some permanent loss in corporate travel. This will force many T&T segments to adapt. For example, operators in the meetings, incentives, conferences and events (MICE) area may have to rely more on smaller and hybrid events. 32 T&T businesses and destinations are increasingly looking to capture opportunities offered by the changing nature of work. Over the course of the pandemic, more businesses have gone virtual, and an increasing share of the labour force is becoming independent.

"In 2020, 10.9 million Americans said they were digital nomads, a 49% increase from 2019."

This sample of independent workers is also increasingly willing to travel. A recent survey showed that the share of US independent workers doing business outside the country jumped from 12% in 2013 to 28% in 2020. 33 Additionally, the trend in “bleisure” travel – the addition of leisure activities to business trips – is also growing. 34

To cater to these growing markets, T&T businesses will have to become more flexible and create new, innovative products. For instance, some major hospitality groups are creating new long-stay properties that include kitchens and living spaces, while other have introduced packages that offer reduced rates for those staying longer, which include IT and boardroom services. 35 Furthermore, while virtual business may require less office space, corporations and their employees may need options for occasional company meetings and events that the sector could provide. However, it is important to note that these new market opportunities are primarily for the high-end travel market and are not likely to replace the overall loss in business travel. Lastly, T&T operators have also had to introduce more flexible booking and cancellation policies in order to address uncertainty about travel regulations and the pandemic, in addition to increased consumer desire to make last-minute changes or to add leisure stays to their business trips. 36

From a destination point of view, many governments have also adapted to changing conditions to take advantage of shifting demand dynamics. For one thing, many countries have provided various incentives to boost domestic tourism. For example, Hong Kong, Singapore, South Korea and Japan have rolled out various programmes that provide discounts, coupons and subsidies for domestic travel. 37 Meanwhile, Aruba targeted the digital nomad market through extended work visas and other benefits via its One Happy Workation programme. 38 The trends towards more rural and nature-based tourism also offer an opportunity for less-developed economies to harness the benefits of T&T given that the distribution and quality of natural assets are less tied to overall economic development, with Natural Resources being one of the few pillars where non- high-income economies typically outperform high- income countries (see Figure 6).

Figure 6: Composition of top quartile, by income group

Overall, the above adaptations to shifting demand and COVID-19 conditions help highlight how flexible T&T business and destinations can be in times of crisis. As the sector rebuilds and addresses future risks, its adaptability will become more crucial than ever. In particular, as can be seen in the key findings that follow, the shift to domestic and nature-based travel, as well as other trends, coincides with an increased emphasis on sustainable and safe travel. Therefore, T&T development will have to become increasingly sustainability-oriented.

4.3 Building back better

Given the current challenges, shifting demand dynamics and future opportunities and risks, it is vital that T&T development strategies are employed to rebuild the sector in a more inclusive, sustainable and resilient manner.

Restoring and accelerating international openness and consumer confidence, including investment in health and security

For starters, as travel restrictions are removed, ensuring that T&T markets are open to visitors and investors will become vital. In particular, it is important that the historical trend of ever greater international openness in T&T continues. Reduced visa requirements fuel international tourism and additional air service agreements open up markets to more airlines, routes, competition and, ultimately, better service (see Figure 7). Given the recent decline in international route capacity and travel demand, prioritizing visa and air service agreement liberalization will be important – with those economies most dependent on tourism exports and lacking large domestic markets standing to benefit the most. Financial openness and an increase in regional trade agreements can also help to facilitate necessary cross-border investment in T&T and beyond, which may also help encourage more international and intra-regional travel.

TTDI results indicate that Western, Southern and Northern Europe are usually the most internationally open subregions due to the close integration that the European Union, the Schengen Area and similar blocs and agreements provide. Such systems allow T&T operators to benefit from factors such as a larger and more diverse consumer base and common market rules. It is also important to recognize that despite the pandemic and disrupted global trade, 83 economies ranked in the index increased their number of regional trade agreements in force between 2019 and 2021. Relevant recent developments include the African Continental Free Trade Area (AfCFTA), which came into force in 2021. Combined with related efforts such as the Free Movement Protocol and Single African Air Transport Market (SAATM), the sub-Saharan Africa region has the potential to unlock its untapped T&T potential and grow its underdeveloped intra- regional T&T market and air route capacity. 39

Figure 7: Correlation between air service agreement liberalization and air transport infrastructure, 2019

Endnotes 40 , 41

Of course, the pandemic, along with the recent rise in geopolitical tensions, also highlights just how important health and security conditions are to protecting the openness on which T&T relies and to restoring consumer confidence in travel. Economies with sophisticated healthcare systems are better equipped to mitigate the impact of pandemics on T&T and the wider economy by protecting their populations, including the T&T workforce and visitors, thus reducing the need for travel and lockdown restrictions. Meanwhile, access to clean water and sanitation facilities helps prevent diseases or their spread. Lastly, consumers and business travellers are likely to remain more sensitive to the health and hygiene conditions at destinations for some time. A recent survey shows that the majority of travellers consider safety protocols, restrictions and cleanliness to be key factors in travel decision- making. 42 In the short term, T&T business, destinations and international organizations have responded to these issues via actions such as the introduction of various protocols and certifications. For instance, the World Travel & Tourism Council has introduced the Safe Travels protocols and certification stamp that can be used by T&T to show customers they are following standardized global health and hygiene practices. 43

In general, underdeveloped health and hygiene infrastructure and access represents an acute challenge for many developing countries, with low- and lower-middle-income economies scoring 50.0% and 25.6% below average in the Health and Hygiene pillar. These states lack physicians and hospital beds (in terms of ratio to population size) and access to basic sanitation and drinking water, and such issues, combined with lower vaccination rates, mean that these economies will struggle to recover at the same pace as others and will have difficulty building adequate resilience against future health security risks. It is therefore crucial for the success of the global T&T sector that the challenges related to vaccine distribution and roll-out are addressed in an equitable and inclusive fashion. While further effort is required, public-private cooperation can provide a useful avenue to address this challenge. For example, the World Economic Forum’s Supply Chain & Transport Industry Action Group community, which consists of leading supply-chain companies, is supporting UNICEF and the COVAX Vaccine Distribution programme with “planning, preparedness and prioritized transportation and distribution of COVID-19 vaccines and related supplies”. 44

The above-mentioned introduction of travel bans, flight-route adjustments, increasing fuel and food prices and potentially hindered international travel demand caused by the war in Ukraine have also shown the degree to which international T&T can be affected by geopolitical tension and conflict. Overall, it is well established that crime and security issues such as terrorism and conflict have a negative impact on tourist arrivals and sector revenue. 45 The 2021 TTDI data shows that economies in the Americas, sub-Saharan Africa and South Asia tend to score the lowest for safety and security, thereby creating a further obstacle to the future development of T&T in these areas.

On the other hand, research has also shown that a sustainable and open tourism sector can be resilient to violence and conflict and that it may help foster positive peace, namely the “attitudes, institutions and structures that create and sustain peaceful societies”. More specifically, the mechanisms through which tourism can accomplish this include cultural and information exchange, encouragement of tolerance, better government functioning, human capital development, and local and cross-border economic gain that can reduce the risks to peace. 46 It is now more important than ever to leverage the T&T sector’s potential for peace through sustainable development.

"It is crucial for the success of the global T&T sector that the challenges related to vaccine distribution and roll- out are addressed in an equitable and inclusive fashion. While further effort is required, public- private cooperation can provide a useful avenue to address this challenge."

Building favourable and inclusive labour, business and socioeconomic conditions

Over the course of the pandemic, the T&T sector has received substantial support in the form of debt financing, tax policies, assistance with business costs, public-sector investment, employment support, incentivization of tourism demand and easing of regulations. 47 In the future, continued investment in human capital and the creation of more favourable labour, business and socioeconomic conditions will be vital components in making the sector more inclusive, addressing ongoing challenges such as labour shortages and driving T&T growth and resilience.

Factors such as accessible and quality education and staff training, supportive hiring and firing practices, programmes to source skilled labour, flexible working arrangements and efforts to improve labour productivity can help equip T&T companies with a workforce that can improve operating efficiency, provide quality services, maintain flexibility in the face of evolving business needs and challenges and take advantage of the growing role of ICT tools. For example, according to the World Economic Forum’s The Future of Jobs Report 2020 , skills gaps in the local labour market were the number one barrier to adoption of new technologies in the transport and storage, and consumer sectors, the two sectors most closely tied to T&T. 48 Furthermore, according to the WTTC, factors such as facilitation of labour mobility, upskilling and reskilling and promotion of education are vital elements in addressing the current labour shortage. 49 Meanwhile, the past few years have shown how important policy stability, access to credit and creating more business- friendly regulatory and tax environments have been in supporting the T&T sector, especially SMEs that typically do not have the same resources and access to capital as larger firms. 50

The 2021 TTDI results partially reflect some efforts by policy-makers to support their economies, with the average Business Environment score climbing 1.7% since 2019. In particular, perceptions of the burden of government regulations and SME access to finance were areas that saw some of the largest improvements. The average Human Resource and Labour Market pillar also improved by 1.5% between 2019 and 2021, due to overall progress made in areas such as staff training. Nonetheless, less developed economies still score well below the TTDI average for most indicators for both pillars.

The pandemic has also highlighted how important an economy’s socioeconomic resilience is for the T&T sector. In general, the ability of an economy to support its population through social protections such as unemployment and maternity benefits, keep youth employed or in training, effectively uphold workers’ rights and support a diverse and inclusive workforce may potentially help strengthen employee productivity, expand the labour pool and make it more resilient to risks such as pandemics. 51 This is particularly true for the T&T sector because it provides income for a large number of youth, women, informal workers, the self-employed and small enterprises, who do not always have access to social or worker protections. Figure 8 shows that there is a relationship between socioeconomic resilience and conditions and labour productivity in T&T. Recent survey data also reinforces how important issues such as benefits and working conditions are for attracting talent and addressing the ongoing labour shortage in the sector. One poll of former US hospitality workers showed that more than half won’t return to their old jobs and over a third are not planning on returning to the industry as they seek higher pay, better working conditions and benefits, and more flexibility. 52

Figure 8: Correlation between socioeconomic resilience and conditions and tourism labour productivity

The 2021 TTDI results show that, across the board, socioeconomic resilience has tended to improve due to the expansion of social protection coverage and spending in line with global efforts to mitigate the impact of COVID-19. High-income economies do tend to score far higher on the Socioeconomic Resilience and Conditions pillar, putting them in a better position to deal with future challenges and maximize their workforce potential. Conversely, low- and lower-middle-income countries have far lower socioeconomic resilience due to more limited social protection, higher rates of youth not in education, employment or training (NEET), fewer workers rights and greater inequality of opportunity for all. As a result, the T&T sector in these economies may face more obstacles to recovery and may be more vulnerable to future risks.

While rising interest rates and debt levels represent a growing obstacle, government responses to the pandemic demonstrated their capacity to provide more comprehensive socioeconomic support, and the benefits of doing so, albeit during an unprecedented situation. While the pandemic has certainly disproportionately affected SMEs, entrepreneurs or more vulnerable populations, strengthening such mechanisms, especially in the T&T sector, could have compound benefits for the sector and economies as a whole.

The growing role of environmental sustainability

In the coming years, the success of T&T businesses and destinations will be increasingly tied to their ability to manage and operate under ever greater ecological and environmental threats. According to surveys conducted for the World Economic Forum’s Global Risks Report 2022 , environmental risks represent half of the top 10 global risks, with climate action failure, extreme weather and biodiversity role natural assets play in generating T&T demand and spend, these environmental risks represent a serious threat to long-term growth for the sector. Moreover, within this context, travellers increasingly value environmentally sustainable options. 54 df

The 2021 TTDI results indicate the extent of environmental sustainability threats and challenges. For instance, comparing the Natural Resources and Environmental Sustainability pillar scores helps to pinpoint where some of the greatest risks to nature-based tourism might lie. Out of the 30 economies that rank in the top quartile for natural resources, 17 score below the global average for environmental sustainability and eight rank in the bottom 25.

Figure 9 provides a regional view of the challenge. While most economies in the Americas and Asia- Pacific and almost half of those in sub-Saharan Africa score above average for natural resources, they commonly underperform in environmental sustainability, making it a critical problem for future T&T development. Environmental issues differ in these regions, but some examples include elevated climate-related risk (as measured by the Global Climate Risk Index), air and sea pollution, deforestation, poor wastewater treatment and inadequate preservation policies. In the Middle East and North Africa, common problems include water stress and air pollution. On the other hand, economies in the Europe and Eurasia region are world leaders in environmental sustainability, accounting for more than half of countries in the TTDI that score above average for this pillar. Combined with the fact that natural resources are not its greatest strength or dependency, the region and its tourism sector may be the better positioned to deal with future ecological risks.

Figure 9: Share of regional economies scoring above average for natural resources and environmental sustainability

Nonetheless, while there are some economies that have better environmental conditions, the challenge is widespread and is not easing. The difference in average score between the top and bottom quartiles for the Environmental Sustainability pillar is the second-lowest among the pillars. Moreover, performance for many indicators in this pillar has been mixed. For example, scores for deforestation continued to worsen. On the other hand, efforts to preserve the environment and T&T-generating natural assets got a boost from continued expansion in the share of protected territories and the number of environmental treaties signed.

A recent UNWTO and One Planet report reiterated the importance of a healthy environment for T&T competitiveness and development and recommended several actions to help the T&T sector produce a greener recovery. This included biodiversity protection actions such as putting tourism at the forefront of conservation efforts and ensuring that the value tourism provides for conservation efforts via monitoring mechanisms and investing in nature-based solutions is captured. Climate action efforts in T&T can be accelerated through the likes of monitoring and reporting emissions from tourism operations, accelerating decarbonization through the development of low-carbon transport options and greener infrastructure, and engaging in carbon removal via the restoration of carbon-density ecosystems and carbon-removal technologies. Finally, circular economy actions are recommended.

These include investing in transforming tourism value chains by reducing, reusing, repairing, refurbishing, remanufacturing, recycling and repurposing whenever possible; prioritizing sustainable food approaches such as local and organic procurement; creating sustainable menus and focusing on reducing food loss; and shifting towards a circularity of plastic in tourism. 55

At the World Economic Forum, efforts in this field are plentiful, and cover multistakeholder actions on decarbonizing transportation, accelerating action on plastics, ensuring the long-term, sustainable use of the ocean, and developing the circular economy. In particular, the Clean Skies for Tomorrow Coalition 56 is working with stakeholders in the aviation ecosystem, including buyers of corporate travel, to accelerate the production and use of sustainable aviation fuels, all while better distributing the green premium for these fuels. The Forum also hosts the Global Future Council on Sustainable Tourism, 57 a community of experts from academia, business, civil society and governments who are developing a set of principles for sustainable destinations to guide decision-making on rebuilding the sector in the wake of the pandemic. The Council is also researching customer behaviour changes that can incentivize the development and delivery of more sustainable travel products and services, articulating the value of investment in the blue and green economies in tourism, and providing guidance on the ambition of achieving net-zero emissions across the various verticals in the T&T sector.

Managing tourism demand and impact

Sustainable management of tourism demand that maximizes benefits for local communities, while also mitigating negative side effects such as overcrowding, will also become a vital component of T&T development as the sector recovers.

The TTCR 2019 discussed how long-term T&T growth was starting to put pressure on local infrastructure and housing, as well as degrading cultural and natural assets that attract visitors and fuelling uneven distribution of T&T benefits. This ultimately led to falling liveability standards for residents, local backlash against tourism and diminished visitor experience. 58 Although recent lockdowns and travel restrictions led to this sustainability challenge being discussed less, it is likely to become a more common topic as demand continues to recover. In many areas, the pandemic-fuelled travel demand push towards outdoor attractions, rural communities and secondary destinations has already revealed capacity constraints. For instance, the rise in nature travel had already led to more overcrowding at many national parks, with many US national parks monthly visitation number hitting all-time highs, leading to issue such as littering, wildlife disruption and traffic jams. 59 Visitors also show signs of wanting to reduce their footprint and improve the social impact on the destinations they visit, with just over half of global travellers in a recent survey indicating that they would be willing to switch their original destination for a lesser-known one if it led to a reduced footprint and greater community impact. 60

While issues such as overcrowding and other effects of T&T on communities are typically a local rather than national-level concern, the TTDI looks at the existence of, or risk related to, overcrowding and demand volatility, as well as the quality and impact of T&T via the T&T Demand Pressure and Impact pillar. In general, pillar results indicate that T&T Demand Pressure and Impact challenges affect economies of all levels of development. For instance, the difference in the average pillar score between low- and lower-middle-income and high-income economies covered by the index is just 0.8% and 2.5%, respectively.

High-income European countries tend to be some of the top TTDI performers and include rich cultural and non-leisure assets and quality transport and tourism infrastructure that allow for the absorption of large quantities of visitors. However, they still tend to score below average for the T&T Demand Pressure and Impact pillar due to factors such as shorter lengths of stay, higher seasonality and a very high level of concentration of interest in a small number of attractions, as shown by Tripadvisor page views and backed by at times unfavourable perceptions of the dispersions of tourism. Unsurprisingly, this region has often claimed headlines for tourism overcrowding. On the other hand, less-developed economies and those ranking lower on the TTDI tend to bring in fewer tourists, but still score below average for perception of tourism dispersion and town- and city-centre accessibility and crowding, an issue that may be partially explained by these economies’ typically below-average scores for transport infrastructure.

Figure 10: T&T Demand Pressure and Impact pillar component scores, 1–7 (best)

In summary, the relatively close distribution of T&T Demand Pressure and Impact pillar scores among economies of different incomes and tourist arrival levels highlights the fact that challenges such as overcrowding have less to do with visitor numbers and more to do with local conditions and policies.

Yet, as the sector rebuilds, there is an opportunity to use increasing domestic and nature-based T&T demand, consumers’ rising preference to manage their footprint and the need to address historical issues such as overcrowding by making investments and policies that help disperse T&T, thus making the sector more resilient. For one, proper care must be paid to developing transport, tourism, health and ICT infrastructure in rural, nature and secondary destinations. This can help funnel tourism and its benefits to more communities, make them more attractive destinations and increase their capacity to absorb more visitors. Within urban centres, improved road and public transport infrastructure and access to efficient, accessible, safe and affordable transport options can reduce the chances of overcrowding and lead to both greater liveability for residents and a better visitor experience (see Figure 11).

Figure 11: Correlation between public transport and quality of town and city centres

In general, TTDI 2021 results show an improvement in the Ground and Port Infrastructure pillar (+2.2%) since 2019. In particular, middle-income economies have experienced some of the strongest growth in areas such as perceptions of road quality and efficiency of train services. Nevertheless, as already alluded to, less-developed economies still have gaps in their infrastructure, ranging from lower road and rail density to a lack of access to efficient and quality public transport. Combined with lower marks for factors such as tourist and health infrastructure, these economies will face some of the greatest challenges in distributing tourism and its benefits throughout their communities. However, they also have the most to gain from overcoming these obstacles.

Aside from investment in infrastructure, policies are also a fundamental part of proper tourism demand management and dispersion. The above subsections of the key findings section explored how governments and destinations can institute policies to develop domestic and other forms of tourism. Moreover, there are specific efforts that can be made to manage T&T to prevent overcrowding and efficiently use a destination’s carrying capacity. For instance, the UNWTO has set out strategies and measures that can combat challenges such as these in cities. Some of these include the promotion of attractions and events that disperse visitors so they are not concentrated only in certain areas, time-based dynamic pricing, the creation of pedestrian-only zones, defining the carrying capacity of city areas, focusing on lower-impact visitor segments, ensuring local communities benefit from tourism, engaging with local stakeholders and monitoring the impact of tourism, including through the use of big data. 61

T&T stakeholders can also play a more active role in broader sustainable mobility efforts and trends that can help to reduce the sector’s environmental impact, manage demand and make destinations more attractive for visitors and residents. For example, the World Economic Forum’s Global New Mobility Coalition (GNMC) is a multistakeholder community for “accelerating the shift to a Shared, Electric and Autonomous Mobility (SEAM) system”. The synchronization of high-occupancy, electric and autonomous transport options can lead to better traffic flow, higher efficiency of road usage, more equitable mobility systems, better air quality, lower carbon emissions and improved grid resilience. More specifically, SEAM may reduce carbon emissions by 95%, improve mobility efficiency by 70% and decrease commuting costs by 40%. Given SEAM’s clear potential to create more sustainable destinations, a case can be made for T&T sector involvement this area. 62

The crucial role of digital technology

All of the aforementioned efforts to build back a better T&T sector will depend on effective leveraging of the growing role of digitalization in T&T.

More T&T services are being accessed by digital systems through online travel agencies (OTAs) and sharing economy platforms, direct online bookings, digital payment systems and mobile devices, and thus consumers tend to expect the greater convenience, increased options, reduced person- to-person contact and seamless experience that these systems provide. Furthermore, digitalization enables T&T businesses to gather consumer insights and preferences, optimize operations, cut transaction costs and automate processes. 63 Online platforms also enable T&T service providers, including SMEs, to reach beyond their local markets and connect with broader domestic and international markets. Due to the above- mentioned factors, it is not surprising that a positive relationship has been found between ICT readiness and international tourism receipts. 64 In the context of shifting demand dynamics, destinations with greater ICT readiness will be better positioned to diversify their markets and take advantage of trends such as the rising numbers of digital nomads and growth in nature-related travel. For instance, research shows a clear relationship between the ICT Readiness pillar and natural tourism online searches in economies with rich natural resources. 65

A recent report by the Asia Development Bank (ADB) and UNWTO outlines how the T&T sector can use big data and digitalization for better and more sustainable tourism management and recovery. Tourism-specific data coming from sources such as T&T operators and online platforms, and non-tourism-specific data coming from sources such as credit card transactions, mobility services and sensors can help T&T stakeholders track and manage the social, economic and environmental impacts of T&T, complement more traditional data-collection efforts, manage tourism flows and target preferred source markets, thereby helping to create smart destinations.

For instance, the Macao Government Tourism Office has worked with a major Chinese multinational technology company to “optimize visitors’ travel experiences before, during and after trips; obtain insights into travellers’ behaviour through in-depth analysis of big data; and monitor, divert and disperse visitor flows at tourist districts and congested areas”. The use of big data and various digital platforms and technology can also help seamless travel and act as health and security tools by enabling safety protocols, biosecurity technologies and digital health certificates, thereby boosting traveller confidence. However, the report also highlights the various barriers to greater use of big data and digitalization within the T&T sector. Some of these challenges include privacy concerns, data reliability, governance issues, disincentives for public-private collaboration, the digital divide, skills gaps and greater efforts to include SMEs. 66

Figure 12: ICT Readiness by economic income group, 2019–2021

Figure 12 helps to illustrate the digital divide among economic income groups. Developing economies typically lag when it comes to ICT infrastructure, internet connectivity and mobile network coverage, which hampers the use of digital platforms in financial services, transport and tourism activities. On the other hand, the ICT Readiness pillar is the most improved (+3.0%) since 2019 largely due to continued improvement in low- and middle-income economies. These results indicate that while high-income economies are best positioned to leverage digitalization and create smart destinations, developing economies are building capacity. In addition, as already mentioned, creating a more highly skilled labour force will be an essential element and challenge in maximizing the use of ICT tools in T&T.

The growing role of digitalization and, in particular, digital platforms, within the T&T space can also create other labour and socioeconomic challenges. Globally, the number of active digital labour platforms, which include ride-hailing taxi and delivery services, has grown from fewer than 200 in 2010 to at least 777 at the start of 2021. As stated, these platforms create new avenues for flexible employment for people, allow business to access wider markets and talent pools, improve productivity and provide convenience for customers. However, they could also lead to greater income and job insecurity. Commonly raised issues include less favourable working conditions, deficient social protection and employment benefits and a lack of access to fundamental rights of freedom of association and collective bargaining. 67 The growth in popularity of digital platforms offering short-term rentals has also led to concerns about residents’ access to housing at destinations where housing capacity is increasingly taken up by the T&T sector. 68 The concentration of market share in the hands of digital platforms may also lead to imbalances in the bargaining and pricing power of the various stakeholders, including workers and SMEs. 69

If proper efforts are made, from employee training and supporting SMEs’ use of ICT to fair and effective regulation of digital platforms and their impact on workers and destination communities, digitalization in T&T will become one of the driving forces in growing the sector’s role in inclusive, sustainable and resilient development. However, failing in these areas could also transform this key aspect of T&T operations into an increasingly acute barrier to future T&T growth.

4.4 Conclusion to the key findings

The COVID-19 pandemic and its impact have underscored the T&T sector’s vital role in global connectivity and development. In the coming years it will therefore be crucial for T&T stakeholders to devise strategies that make the sector more inclusive, sustainable and resilient.

As the TTDI 2021 results reveal, any such enterprise will require a comprehensive and holistic approach. Creating a better T&T economy is not just about improving infrastructure or offering favourable pricing. It also involves creating better health and hygiene conditions, ensuring natural resources are protected and that the workforce on which the sector depends has access to training and social protection. This necessitates the active participation and coordination of sector and non-sector business, employers and employees, government agencies ranging from tourism and health ministries to local authorities, environmental and conservation groups, and international organizations. Over the course of the pandemic, often uncoordinated travel restrictions and health protocols revealed the difficulty and necessity of such cooperation.

In the future, efforts will need to be made to devise common frameworks for defining and measuring T&T sustainability, including the creation of commonly accepted environment, social and governance metrics. The safe and ethical use of big data will prove fundamental to this cause. Moreover, in an increasingly complex and technology-enabled environment, it will be vital to ensure that developing economies, workers and SMEs are not left behind.

While these challenges may be difficult, the flexibility and adaptation the T&T sector has shown in the past few years also indicates that sector stakeholders are more than capable of rising to the occasion.