Corporate Travel Expenditures Take Off After a Long Lull

U.S. corporate travel spending is taking off in 2024 after a several years of historically low volume. With growth between 8% and 12% expected, expenditures will meet or surpass pre-pandemic levels by the end of the year, Deloitte predicts in a new report.

Live events are big drivers of corporate travel, with about 60% of business travelers expecting to attend a conference, trade show or exhibition this year. Another motivator is client-related travel, with 1 in 5 frequent travelers reporting they take trips for sales or project work more than once a month.

But as travel picks up, companies face high prices for airfare and lodging, sustainability requirements and the effects of hybrid and remote work. Companies are balancing the need for more face-to-face interaction with financial and environmental considerations, Deloitte says.

“Business travel has been slower to come back following pandemic slowdowns, but this could be the year that it accelerates to new heights,” says Eileen Crowley, vice chair, Deloitte & Touche, and U.S. transportation, hospitality and services attest leader. “More employees are traveling for business — and enjoying it — underscoring that in-person connection often remains a critical component.”

Among travel managers surveyed, 73% expect their companies’ travel spending to increase in 2024, and 58% expect it to increase in 2025, according to Deloitte, which cites rising prices and increasing trip frequency. Those who project gains expect an average increase of 14% to 15% each year.

Amid higher prices, travel managers say pricing’s impact on travel volume is 1.5 times more significant than budget cuts. Most seek to reduce costs through use of company booking tools. But getting travelers to use them is a challenge. Only 56% of travelers surveyed who knew about their company’s booking platform say they always book trips through them. Age is a strong predictor of booking compliance: GenX and Boomers are significantly less likely to say they always use managed channels.

Nearly one-quarter (22%) of travel managers surveyed say that high prices are the biggest drag on trip volume for their companies, and 40% put prices in the top two.

Deloitte reports that 83% of those surveyed say business travel is overall “enjoyable,” and about half cite networking opportunities (51%) and exploring different cities (47%) among the top benefits of business travel. Many find further opportunities for enjoyment; two-thirds extended a business trip for leisure in 2023. One in 7 say they did so three or more times.

Sustainability is a high priority for many companies, and most travel managers surveyed still say emissions targets will hinder travel. Most say companies must reduce travel to meet 2030 sustainability goals, and more than half say they need to cut trips by 10 to 20%.

More travel managers say their companies are adopting travel-related sustainability measures, such as encouraging and enabling employees to make greener travel choices.