How Much Do Companies Spend on Business Travel

How Much Do Companies Spend on Business Travel in 2024?

Published on: December 18, 2023
Last Updated: December 18, 2023

How Much Do Companies Spend on Business Travel in 2024?

Published on: December 18, 2023
Last Updated: December 18, 2023

Companies spend billions every year on business travel in exchange for meeting clients, discovering new markets, and closing deals, among other reasons. 

In this resource, we will look into some of the questions our avid readers are keen to know: how much do companies spend on business travel?

Which countries are the most expensive locations for this purpose? Let’s find out.

Key Statistics

  • Companies spent more than $117 billion on business travel annually before the pandemic
  • Expenditure from business tourists worldwide dropped to $661 billion in 2020 from $1.4 trillion in 2019
  • Amazon is the leading company for business travel spending in the United States in 2022 by booked air volume, spending $483 million for the purpose
  • The global business travel market is projected to record a 24% CAGR between 2023 to 2027
  • Spending on meals take up the biggest piece of the pie on business travels, accounting for 21% of the entire expenditure
  • Attending conferences is the main reason for going on business trips
  • 73% of business travelers said ‘delayed flights’ is their primary concern for business corporate trips
  • New York is the most expensive location for business travel in the world with an average business trip price of £678 per day

How Much Do Companies Spend on Business Travel?

Business Travel 728

1. Companies Worldwide Spent More Than $117 Billion on Business Travel Every Year Pre-Pandemic

How much do companies spend on business travel every year?

A study published on Travel Pulse revealed that companies spent more than $117 billion on business travel annually before the pandemic. 

Pre-Covid restrictions, businesses allocated 10% of their revenue on business travel-related expenses, as reported by the New York Journal.

The dynamics have changed during the pandemic, with the imposition of travel restrictions and changing of work setup to remote work. 

(Travel Pulse)

2. Expenditure from Business Tourists Tanked to $661 Billion in 2020

As restrictions prevented most business travels from happening, a study from Statista revealed that expenditure from business tourists worldwide dropped to $661 billion in 2020 from $1.4 trillion in 2019.

Take a look at this data detailing the expenditure of business tourists globally from 2012 to 2022:

  • 2012 – the total expenditure business tourists worldwide came at $1.05 trillion during the year
  • 2013 – the total expenditure business tourists worldwide came at $1.10 trillion during the year
  • 2014 – the total expenditure business tourists worldwide came at $1.17 trillion during the year
  • 2015 – 
  • 2016 – the total expenditure business tourists worldwide came at $1.26 trillion during the year
  • 2017 – the total expenditure business tourists worldwide came at $1.33 trillion during the year
  • 2018 – the total expenditure business tourists worldwide came at $1.41 trillion during the year
  • 2019 – the total expenditure business tourists worldwide came at $1.43 trillion during the year
  • 2020 – the total expenditure business tourists worldwide came at $661 billion during the year
  • 2021 – the total expenditure business tourists worldwide came at $697 billion during the year
  • 2022 – the total expenditure business tourists worldwide came at $1.02 trillion during the year

As can be seen from the data above, spending of business tourists worldwide has revamped significantly in 2022 to $1.02 trillion, climbing from 2021’s $697 billion. 

(Statista)

3. Amazon Is the Leading Company for Business Travel Spending in The United States in 2022 by Booked Air Volume

Amazon topped the list of companies in the United States for business travel spending by booked air volume.

  1. Amazon – the company spent $483 million for business travel in 2022
  2. Deloitte – the company spent $284 million for business travel in 2022
  3. Apple Inc – the company spent $210 million for business travel in 2022
  4. Danaher – the company spent $200 million for business travel in 2022
  5. FedEx – the company spent $188 million for business travel in 2022
  6. Meta – the company spent $185 million for business travel in 2022
  7. Google – the company spent $151 million for business travel in 2022
  8. Boeing – the company spent $148 million for business travel in 2022
  9. Lockheed Martin Group – the company spent $146 million for business travel in 2022
  10. RTX Corp – the company spent $145 million for business travel in 2022

Other companies that made the list include McKinsey, EY, JPMorgan Chase & Co., Walt Disney, and Bank of America, all topping $100 million in business travel spending during the year. 

(Statista)

4. Global Business Travel Market Is Projected to Record a 24% CAGR Between 2023 to 2027

The pandemic is officially over and companies are reverting to normal operations, screaming a rebound in global business travel spending. 

According to Technavio, global business travel is expected to grow by $1.53 billion in 2023 and exhibit an impressive growth rate of 24% between 2023 to 2027. 

There are a number of reasons why companies invest in this activity, mainly to scout new markets, establish networks with prospective partners, and meet existing clients, among other reasons. 

(Technavio)

5. Spending on Meals Take up The Biggest Piece of The Pie on Business Travels, Accounting for 21% of The Entire Expenditure

Business Travel 729

One can skip on riding a limo upon landing for a business trip in Bogota but never miss a fancy arepas. Cost of meals can add up easily, and a study published on Finances Online revealed that the cost of meals takes up 21% of the entire expenditure in a business trip.

Other biggest budget consumers include flights, accommodations, gasoline, car rental, phone expenses, and taxi fares. 

  • Meals – this takes up 21% of the entire budget in a business trip
  • Flights – this takes up 17% of the entire budget in a business trip
  • Accommodations – this takes up 13% of the entire budget in a business trip
  • Gas – this takes up 11% of the entire budget in a business trip
  • Car rental – this takes up 5% of the entire budget in a business trip
  • Phone expenses – this takes up 5% of the entire budget in a business trip
  • Taxi fares – this takes up 3% of the entire budget in a business trip
  • Supplies and toll – this takes up 2% of the entire budget in a business trip
  • Parking fees – this takes up 1% of the entire budget in a business trip

(Finances Online)

6. Increased Attendance at Live Events Is the Main Growth Driver for Corporate Travel in 2023 

Companies take live events seriously. They provide an opportunity to network and market their brand which can later lead to sales. 

This is the reason why the increased attendance on live events has come as the main growth driver for corporate travel growth in 2023, climbing from the 5th spot in 2022. 

Other main drivers for the activity this year is easing of travel restrictions, reopening of offices, and increased travel budgets. 

(Deloitte)

7. Higher Travel Prices Hinder Business Travel Growth 

On the other hand, higher travel prices are slowing down business travel return, topping the list as the biggest hindrance in the return of business travel in 2023.

Other challenges include travel restrictions, reduced travel budgets, client unwillingness, and employee unwillingness. 

(Deloitte)

8. Attending Conferences Is the Main Reason for Going on Business Trips

Attending conferences topped the reasons behind business travel, with 62% naming this purpose as the reason behind their corporate travel. 

Meanwhile, 56% of business travel is done for meeting other companies for the purpose of business planning, while 44% are for professional development.

Lastly, 30% of corporate trips are related to pitching new products to customers or partners.

(Finances Online)

9. 73% of Business Travelers Said ‘delayed Flights’ Is Their Primary Concern for Business Corporate Trips

The majority or 73% of business travelers named ‘delayed flights’ as their primary concern when going on a business trip, while 44% said that they are worried about the limited airline seat availability. 

Moreover, 31% named passing through security checks as one of the main reasons behind their apprehensions. 

(Finances Online)

10. New York Is the Most Expensive Location for Business Travel in The World

New York 732

New York is not a concrete jungle “where dreams are made of” for no reason.

A recent study published by ECA International revealed that New York is the most expensive destination for business travelers, with an average business trip price of £678 per day.

Here are the Top 10 Most Expensive Locations for Business Travel Worldwide:

  1. New York, USA – the location requires an average spending of £678 per day for a business trip
  2. Geneva, Switzerland – the location requires an average spending of £597 per day for a business trip
  3. Washington DC, USA – the location requires an average spending of £561 per day for a business trip
  4. Zurich, Switzerland – the location requires an average spending of £546 per day for a business trip
  5. San Francisco, USA – the location requires an average spending of £519 per day for a business trip
  6. Tel Aviv – the location requires an average spending of £507 per day for a business trip
  7. Los Angeles, USA – the location requires an average spending of £498 per day for a business trip
  8. London, United Kingdom – the location requires an average spending of £497 per day for a business trip
  9. Luanda, Angola – the location requires an average spending of £481 per day for a business trip
  10. Paris, France – the location requires an average spending of £475 per day for a business trip

(ECA International)

Conclusion

Business travel has undergone significant shifts in recent years, marked by the impact of the COVID-19 pandemic. 

While the pre-pandemic era witnessed companies globally investing over $100 billion annually in business travel, the restrictions and changes in work dynamics during the pandemic led to a substantial drop in expenditures. 

As the world moves beyond the pandemic, there is a projected resurgence in the global business travel market, with an anticipated 24% compound annual growth rate between 2023 and 2027.

Sources

Eca-InternationalTravel PerkMeetings-Conventions-Asia
SalestripTravelpulseStatista
StatistaStatistaStatista
TechnavioTravel PerkLinkedIn
TravelperkTcdata360.WorldbankDeloitte
Finances OnlineDeloitte

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Written by Kelly Indah

I’m a statistics researcher here at EarthWeb with a special interest in privacy, tech, diversity, equality and human rights. I have a master’s degree in Computer Science and I have my Certified Information Systems Security Professional (CISSP) certification.